LOMA 281 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE RESOURCE
●● Premium
Answer: A specified amount of money an insurer charges in exchange
for its agreement to pay a policy benefit when a specific loss occurs.
●● Insurance company
Answer: A company that provides protection against the risk of financial
loss caused by specific events.
●● Life insurance
Answer: A type of insurance under which the insurer promises to pay a
death benefit upon the death of a named person.
●● Annuity
Answer: A financial product by which an insurer, in return for receiving
a premium, promises to make periodic payments to a named person or
entity.
●● Applicant
Answer: The person or entity that applies for an insurance policy.
, ●● Policyowner
Answer: The person or entity that owns the issued policy.
●● Insured
Answer: The person whose life or health the policy insures.
●● Beneficiary
Answer: The person named to receive the policy benefit if the insured
event occurs.
●● Third party policy
Answer: A policy one person purchases that insures the life of another
person.
●● Speculative risks
Answer: A risk that involves three possible outcomes: loss, gain, or no
change.
●● Pure risk
Answer: A risk that involves no possibility of gain; either a loss occurs
or no loss occurs.
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE RESOURCE
●● Premium
Answer: A specified amount of money an insurer charges in exchange
for its agreement to pay a policy benefit when a specific loss occurs.
●● Insurance company
Answer: A company that provides protection against the risk of financial
loss caused by specific events.
●● Life insurance
Answer: A type of insurance under which the insurer promises to pay a
death benefit upon the death of a named person.
●● Annuity
Answer: A financial product by which an insurer, in return for receiving
a premium, promises to make periodic payments to a named person or
entity.
●● Applicant
Answer: The person or entity that applies for an insurance policy.
, ●● Policyowner
Answer: The person or entity that owns the issued policy.
●● Insured
Answer: The person whose life or health the policy insures.
●● Beneficiary
Answer: The person named to receive the policy benefit if the insured
event occurs.
●● Third party policy
Answer: A policy one person purchases that insures the life of another
person.
●● Speculative risks
Answer: A risk that involves three possible outcomes: loss, gain, or no
change.
●● Pure risk
Answer: A risk that involves no possibility of gain; either a loss occurs
or no loss occurs.
