LOMA 281 FINAL EXAM QUESTIONS AND
DETAILED SOLUTIONS COMPLETE
PREPARATION GUIDE
●● Policy term
Answer: The specified period of time for which a term life insurance
policy provides coverage.
●● Level Term life insurance
Answer: A plan of term life insurance that provides a policy benefit that
remains the same over the term of coverage.
●● Decreasing term life insurance
Answer: A plan of term life insurance that provides a policy benefit that
decrease in amount over the term of coverage.
●● Increasing term life insurance
Answer: A plan of life insurance that provides a policy benefit that starts
at one amount and increases by some specified amount or percentage at
stated intervals over the term of coverage.
●● Mortgage insurance
, Answer: A plan of decreasing term life insurance designed to provide a
benefit amount that corresponds to the decreasing amount owed on a
mortgage loan
●● Credit life insurance
Answer: A type of term life insurance designed to pay the balance due
on a loan if the borrower dies before the loan is paid
●● Family income coverage
Answer: A plan of decreasing term life insurance that provides a stated
monthly income benefit amount to the insured's surviving spouse if the
insured dies during the term of coverage.
●● Return of premium term insurance
Answer: A type of term insurance that provides a death benefit if the
insured dies during the term of coverage and that promises a return of
premiums if the insured does not die during the term of coverage.
●● Renewable term insurance
Answer: Term life insurance that gives the policyowner the option to
continue the policy's coverage for an additional policy term without
providing evidence of insurability.
●● Evidence of insurability
DETAILED SOLUTIONS COMPLETE
PREPARATION GUIDE
●● Policy term
Answer: The specified period of time for which a term life insurance
policy provides coverage.
●● Level Term life insurance
Answer: A plan of term life insurance that provides a policy benefit that
remains the same over the term of coverage.
●● Decreasing term life insurance
Answer: A plan of term life insurance that provides a policy benefit that
decrease in amount over the term of coverage.
●● Increasing term life insurance
Answer: A plan of life insurance that provides a policy benefit that starts
at one amount and increases by some specified amount or percentage at
stated intervals over the term of coverage.
●● Mortgage insurance
, Answer: A plan of decreasing term life insurance designed to provide a
benefit amount that corresponds to the decreasing amount owed on a
mortgage loan
●● Credit life insurance
Answer: A type of term life insurance designed to pay the balance due
on a loan if the borrower dies before the loan is paid
●● Family income coverage
Answer: A plan of decreasing term life insurance that provides a stated
monthly income benefit amount to the insured's surviving spouse if the
insured dies during the term of coverage.
●● Return of premium term insurance
Answer: A type of term insurance that provides a death benefit if the
insured dies during the term of coverage and that promises a return of
premiums if the insured does not die during the term of coverage.
●● Renewable term insurance
Answer: Term life insurance that gives the policyowner the option to
continue the policy's coverage for an additional policy term without
providing evidence of insurability.
●● Evidence of insurability
