LOMA 291 Module 1 exam with correct |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answers
Stakeholders (consituents) - correct answer✔✔A party that has an interest in how a company |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
conducts its business. Also known as a constituent. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Dividend - correct answer✔✔Compensation that a company may pay to owners upon a vote
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
by the company's board of directors.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Stockholder - correct answer✔✔We stockholders expect the company to grow steadily. We |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
expect to earn a reasonable return, sometimes in the form of dividends. Do you know what a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
dividend is? Sometimes the board of directors votes to make a payment to the stockholders.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The payment is called a dividend.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Policy owner - correct answer✔✔Here are some factors I considered when I chose to buy a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
policy from Forthright: |||\\\ |||\\\
Good company reputation
|||\\\ |||\\\
Policy features |||\\\
Reasonable charges |||\\\
Financial strength |||\\\
Customer service |||\\\
Forthright provides my personal safety net because of their good reputation and policy
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
features. They charge me for reasonable expenses and they have the financial strength to be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
around for the long haul to pay the policy benefits they promise me and my family. So far, I'm
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
pleased with my policy and the company's customer service.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,financial professional - correct answer✔✔In insurance sales, any individual—including agents,
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
bank-affiliated sales personnel, and brokers—who is licensed to sell insurance products, solicit |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
sales, or negotiate insurance contracts. |||\\\ |||\\\ |||\\\ |||\\\
Why do I place business with Forthright? Here are some reasons:
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Forthright's products meet my clients' needs. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Forthright offers competitive compensation on the business I sell. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Its staff is top notch and provides fast and accurate support.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The company has good ratings, so I trust its ability to meet policy obligations in the future.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
key stakeholders - correct answer✔✔- stockholder
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
- policyowner
|||\\\
- financial professional
|||\\\ |||\\\
- employee
|||\\\
- reinsurer
|||\\\
- consultants/vendors
|||\\\
- borrowers
|||\\\
- regulators
|||\\\
- rating agencies
|||\\\ |||\\\
- associations
|||\\\
- trade associations
|||\\\ |||\\\
employee values - correct answer✔✔I value the long-term employment. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
I enjoy my coworkers.
|||\\\ |||\\\ |||\\\
I'm proud to work for a reputable company.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
I appreciate the salary and benefits.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,reinsurance - correct answer✔✔Insurance that one insurance company, known as the direct |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
writer, purchases from another insurance company, known as the reinsurer, to transfer all or
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
part of the risk on insurance policies that the direct writer issued.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
consultants/vendors example - correct answer✔✔I'm a public accountant. I provide external |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
audit services to Forthright. Many vendors provide goods and services to Forthright.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Borrowers example - correct answer✔✔I'm a real estate developer. To fund construction|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
projects, I borrow from Forthright Financial. Forthright lends money as one of its investments.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
They expect to earn a return, so they keep a close eye on me.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
regulators example - correct answer✔✔I conduct in-person examinations of insurance
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
companies that do business in my state. I make sure they comply with regulations and maintain
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
fair business practices.
|||\\\ |||\\\ |||\\\
rating agencies example - correct answer✔✔I assign a grade to Forthright Financial and other
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
companies. The grade, called a rating, indicates my company's opinion of Forthright's overall |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
health and stability. |||\\\ |||\\\
associations example - correct answer✔✔As a Forthright actuary, I belong to several |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
organizations that set professional standards. Forthright employs many professionals— |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
actuaries, accountants, auditors, attorneys, underwriters, medical directors, and others. All of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
these groups have professional associations.
|||\\\ |||\\\ |||\\\ |||\\\
Select each group which counts among an insurance company's stakeholders.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Financial professionals
|||\\\ |||\\\
b. Reinsurance companies
|||\\\ |||\\\
c. Employees
|||\\\
, d. Trade associations
|||\\\ |||\\\
e. Owners of company stock
|||\\\ |||\\\ |||\\\ |||\\\
f. Policyowners - correct answer✔✔All of them -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In each of the following questions, select the person who would most likely make each
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statement about his or her interests as a stakeholder.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
"My company provides backup to Forthright on paying its claims."
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Policyowner
|||\\\
b. Stockholder
|||\\\
c. Employee
|||\\\
d. Reinsurer
|||\\\
e. Financial professional - correct answer✔✔D.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In each of the following questions, select the person who would most likely make each
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statement about his or her interests as a stakeholder.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
"I need prompt handling of my transactions when I make a withdrawal."
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Policyowner
|||\\\
b. Stockholder
|||\\\
c. Employee
|||\\\
d. Reinsurer
|||\\\
e. Financial professional - correct answer✔✔A.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answers
Stakeholders (consituents) - correct answer✔✔A party that has an interest in how a company |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
conducts its business. Also known as a constituent. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Dividend - correct answer✔✔Compensation that a company may pay to owners upon a vote
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
by the company's board of directors.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Stockholder - correct answer✔✔We stockholders expect the company to grow steadily. We |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
expect to earn a reasonable return, sometimes in the form of dividends. Do you know what a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
dividend is? Sometimes the board of directors votes to make a payment to the stockholders.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The payment is called a dividend.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Policy owner - correct answer✔✔Here are some factors I considered when I chose to buy a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
policy from Forthright: |||\\\ |||\\\
Good company reputation
|||\\\ |||\\\
Policy features |||\\\
Reasonable charges |||\\\
Financial strength |||\\\
Customer service |||\\\
Forthright provides my personal safety net because of their good reputation and policy
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
features. They charge me for reasonable expenses and they have the financial strength to be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
around for the long haul to pay the policy benefits they promise me and my family. So far, I'm
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
pleased with my policy and the company's customer service.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,financial professional - correct answer✔✔In insurance sales, any individual—including agents,
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
bank-affiliated sales personnel, and brokers—who is licensed to sell insurance products, solicit |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
sales, or negotiate insurance contracts. |||\\\ |||\\\ |||\\\ |||\\\
Why do I place business with Forthright? Here are some reasons:
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Forthright's products meet my clients' needs. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Forthright offers competitive compensation on the business I sell. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Its staff is top notch and provides fast and accurate support.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The company has good ratings, so I trust its ability to meet policy obligations in the future.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
key stakeholders - correct answer✔✔- stockholder
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
- policyowner
|||\\\
- financial professional
|||\\\ |||\\\
- employee
|||\\\
- reinsurer
|||\\\
- consultants/vendors
|||\\\
- borrowers
|||\\\
- regulators
|||\\\
- rating agencies
|||\\\ |||\\\
- associations
|||\\\
- trade associations
|||\\\ |||\\\
employee values - correct answer✔✔I value the long-term employment. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
I enjoy my coworkers.
|||\\\ |||\\\ |||\\\
I'm proud to work for a reputable company.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
I appreciate the salary and benefits.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,reinsurance - correct answer✔✔Insurance that one insurance company, known as the direct |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
writer, purchases from another insurance company, known as the reinsurer, to transfer all or
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
part of the risk on insurance policies that the direct writer issued.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
consultants/vendors example - correct answer✔✔I'm a public accountant. I provide external |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
audit services to Forthright. Many vendors provide goods and services to Forthright.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Borrowers example - correct answer✔✔I'm a real estate developer. To fund construction|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
projects, I borrow from Forthright Financial. Forthright lends money as one of its investments.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
They expect to earn a return, so they keep a close eye on me.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
regulators example - correct answer✔✔I conduct in-person examinations of insurance
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
companies that do business in my state. I make sure they comply with regulations and maintain
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
fair business practices.
|||\\\ |||\\\ |||\\\
rating agencies example - correct answer✔✔I assign a grade to Forthright Financial and other
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
companies. The grade, called a rating, indicates my company's opinion of Forthright's overall |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
health and stability. |||\\\ |||\\\
associations example - correct answer✔✔As a Forthright actuary, I belong to several |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
organizations that set professional standards. Forthright employs many professionals— |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
actuaries, accountants, auditors, attorneys, underwriters, medical directors, and others. All of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
these groups have professional associations.
|||\\\ |||\\\ |||\\\ |||\\\
Select each group which counts among an insurance company's stakeholders.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Financial professionals
|||\\\ |||\\\
b. Reinsurance companies
|||\\\ |||\\\
c. Employees
|||\\\
, d. Trade associations
|||\\\ |||\\\
e. Owners of company stock
|||\\\ |||\\\ |||\\\ |||\\\
f. Policyowners - correct answer✔✔All of them -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In each of the following questions, select the person who would most likely make each
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statement about his or her interests as a stakeholder.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
"My company provides backup to Forthright on paying its claims."
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Policyowner
|||\\\
b. Stockholder
|||\\\
c. Employee
|||\\\
d. Reinsurer
|||\\\
e. Financial professional - correct answer✔✔D.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In each of the following questions, select the person who would most likely make each
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statement about his or her interests as a stakeholder.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
"I need prompt handling of my transactions when I make a withdrawal."
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a. Policyowner
|||\\\
b. Stockholder
|||\\\
c. Employee
|||\\\
d. Reinsurer
|||\\\
e. Financial professional - correct answer✔✔A.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
