LOMA 311 Module 4 Exam Questions With Correct Answers

LOMA 311 Module 4 Exam Questions With
Correct Answers

Free-Look |Provision |- |CORRECT |ANSWER✔✔-Provision |that |gives |the |policyowner |a |specified |
period, |typically |10 |days, |following |the |delivery |of |the |policy |within |which |to |cancel |the |policy |
and |receive |a |refund |of |the |premium |payment.



Entire |Contract |Provision |- |CORRECT |ANSWER✔✔-Provision |which |defines |the |documents |that
|constitute |the |contract |between |the |insurer |and |the |policyowner.




A |condition |precedent |- |CORRECT |ANSWER✔✔-A |condition |that |must |occur |in |order |to |give |
rise |to |one |party's |duty |to |perform |a |promise |(i.e. |contract |must |in |force |on |date |of |death |for |
insurer |to |be |obligated |to |pay |benefits.)



A |condition |subsequent |- |CORRECT |ANSWER✔✔-A |condition |that |cancels |one's |duty |to |
perform |a |promise |(i.e., |if |insured |does |not |provide |proof |of |loss |the |insurer |does |not |have |to |
pay |benefits).



Conditional |Premium |Receipt |- |CORRECT |ANSWER✔✔-Provides |temporary |insurance |coverage |
only |if |specified |conditions |are |met.



Binding |Receipt |- |CORRECT |ANSWER✔✔-Provides |temporary |insurance |coverage |that |becomes
|effective |on |the |date |specified |in |the |receipt. |It |does |not |require |any |special |conditions |be |


met.



Unfair |Trade |Practices |Act |- |CORRECT |ANSWER✔✔-Act |that |defines |certain |practices |as |unfair |
and |prohibits |those |practices |in |the |business |of |insurance |if |they |are |committed |flagrantly |in |
conscious |disregard |of |the |Act |or |so |frequently |as |to |indicate |a |general |business |practice.