Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT
ANSWERS 2024/2025(GRADED A+)
1. Group Insurance: A method of providing life or health insurance coverage for a
group of people under one insurance contract.
commonly provide:
- life insurance, medical expense insurance, disability insurance, and dental insur-
ance coverage
2. Master group insurance contract: An insurance contract that insures a number
of people.
3. Group insured: An individual covered by a group insurance policy.
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,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
4. Group policyholder: The person or organization that decides what types of
group insurance coverage to purchase for a specific group, negotiates the terms
of the group insurance contract, and purchases the group insurance coverage.
5. Which of these people or companies is a party to the group insurance
contract? (Choose all that apply.)
a. Jerome Tate
b. Able Life Insurance
c. The Stetson Company: B & C- The Stetson Company and Able Life are the par-
ties to the contract. Stetson purchased the contract for the benefit of its
employees, and the contract names Stetson as the owner of the group policy.
Jerome is insuredby the contract, but he is not a party to it.
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,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
6. requirements for a valid contract: - The parties to the contract must mutually
agree to the contract's terms
- The parties must have contractual capacity
- The parties must exchange legally adequate consideration
-The parties must enter into the contract for a lawful purpose
7. Do you think Able Life and The Stetson Company (the parties to the group
insurance contract) have to meet these same four basic requirements?
a. Yes, the requirements generally are the same.
b. No, the requirements are different.: a. The parties must meet the same re-
quirements whether they are entering into a group contract or an individual
contract.However, one difference between a group insurance contract versus an
3 of 120 01/09/2024, 13
,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
individual insurance contract has to do with the lawful purpose requirement.
8. Group insurance contracts have no insurable interest requirement: Instead,a
group contract meets the lawful purpose requirement because the policyholder
buys the coverage for others and is unlikely to benefit from the death of the
insureds.As a result, the group policyholder's interest in the contract doesn't present
the samerisk of creating a wagering agreement.
9. Jerome is covered by the group life insurance plan issued by Able Life.This
means that Jerome is a group
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Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT
ANSWERS 2024/2025(GRADED A+)
1. Group Insurance: A method of providing life or health insurance coverage for a
group of people under one insurance contract.
commonly provide:
- life insurance, medical expense insurance, disability insurance, and dental insur-
ance coverage
2. Master group insurance contract: An insurance contract that insures a number
of people.
3. Group insured: An individual covered by a group insurance policy.
1 of 120 01/09/2024, 13
,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
4. Group policyholder: The person or organization that decides what types of
group insurance coverage to purchase for a specific group, negotiates the terms
of the group insurance contract, and purchases the group insurance coverage.
5. Which of these people or companies is a party to the group insurance
contract? (Choose all that apply.)
a. Jerome Tate
b. Able Life Insurance
c. The Stetson Company: B & C- The Stetson Company and Able Life are the par-
ties to the contract. Stetson purchased the contract for the benefit of its
employees, and the contract names Stetson as the owner of the group policy.
Jerome is insuredby the contract, but he is not a party to it.
2 of 120 01/09/2024, 13
,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
6. requirements for a valid contract: - The parties to the contract must mutually
agree to the contract's terms
- The parties must have contractual capacity
- The parties must exchange legally adequate consideration
-The parties must enter into the contract for a lawful purpose
7. Do you think Able Life and The Stetson Company (the parties to the group
insurance contract) have to meet these same four basic requirements?
a. Yes, the requirements generally are the same.
b. No, the requirements are different.: a. The parties must meet the same re-
quirements whether they are entering into a group contract or an individual
contract.However, one difference between a group insurance contract versus an
3 of 120 01/09/2024, 13
,Loma 281 - Module 4 EXAM QUESTIONS AND CORRECT ANSW... file:///C:/Users/Pavilion/Downloads/Loma%20281%20-%20Module
individual insurance contract has to do with the lawful purpose requirement.
8. Group insurance contracts have no insurable interest requirement: Instead,a
group contract meets the lawful purpose requirement because the policyholder
buys the coverage for others and is unlikely to benefit from the death of the
insureds.As a result, the group policyholder's interest in the contract doesn't present
the samerisk of creating a wagering agreement.
9. Jerome is covered by the group life insurance plan issued by Able Life.This
means that Jerome is a group
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