LOMA 281 Module 1 (100% Correct Answers) 2024.

Risk correct answers the possibility of an unexpected result. Premium correct answers 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 correct answers A company that provides protection against the risk of financial loss caused by specific events. Life insurance correct answers A type of insurance under which the insurer promises to pay a death benefit upon the death of a named person. Annuity correct answers 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 correct answers The person or entity that applies for an insurance policy. Policyowner correct answers The person or entity that owns the issued policy. Insured correct answers The person whose life or health the policy insures. Beneficiary correct answers The person named to receive the policy benefit if the insured event occurs. Third party policy correct answers A policy one person purchases that insures the life of another person. Speculative risks correct answers A risk that involves three possible outcomes: loss, gain, or no change. Pure risk correct answers A risk that involves no possibility of gain; either a loss occurs or no loss occurs. Contracts of indemnity correct answers Health insurance; An insurance policy under which the amount of the policy benefit payable for a covered loss is based on the actual amount of financial loss that results from the loss, as determined at the time of the loss. Valued contract correct answers Life insurance; An insurance policy that specifies the amount of the policy benefit that will be payable when a covered loss occurs, regardless of the actual amount of the loss the was incurred. Face amount correct answers the amount of the policy benefit listed on the first page of a life insurance policy.