LOMA 281 Module 1 Study Guide Exam Questions with Answers 100% Verified 2024

LOMA 281 Module 1 Study Guide Exam Questions with Answers 100% Verified 2024 Risk the possibility of an unexpected result. Premium 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 A company that provides protection against the risk of financial loss caused by specific events. Life insurance A type of insurance under which the insurer promises to pay a death benefit upon the death of a named person. Annuity 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 The person or entity that applies for an insurance policy. Policyowner The person or entity that owns the issued policy. Insured The person whose life or health the policy insures. Beneficiary The person named to receive the policy benefit if the insured event occurs. Third party policy A policy one person purchases that insures the life of another person. Speculative risks A risk that involves three possible outcomes: loss, gain, or no change. Pure risk A risk that involves no possibility of gain; either a loss occurs or no loss occurs. Contracts of indemnity 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.