LOMA 371 EXAM 2024
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
General management risk (C-4 risk) - ANSWERS-The risk of losses resulting from
the insurer's ineffective general business practices or from the need to pay a special
assessment to cover another insurer's unsound business practices
QUESTION 2
RBC Ratio - ANSWERS-Total adjusted capital (TAC) / Risk based capital (RBC)
QUESTION 3
Receivership - ANSWERS-A court appoints a third party to take control of an
insurer's assets and liabilities
QUESTION 4
END OF
PAGE 1
, LOMA 371 EXAM 2024
Financial analysis and solvency tracking (FAST) system - ANSWERS-A
collection of analytical solvency tools that include a ratio based evaluation system
established by the NAIC that is based on ratio analysis of an insurer's most recent
financial statements & analysis of a five year history of specific aspects of an
insurer's financial statement
QUESTION 5
Administrative supervision - ANSWERS-A legal condition under which an insurer
may be required to obtain the insurance commissioner's permission before taking
any of a variety of specified aftions
QUESTION 6
Guaranty association - ANSWERS-An organization that operates under the
supervision of the state insurance commissioner to protect policyowners, insureds,
beneficiaries, annuitants, payees, and assignees against losses that may result from
the impairment or insolvency of an insurer in that state
QUESTION 7
END OF
PAGE 2
, LOMA 371 EXAM 2024
Underwriting risk - ANSWERS-The specific risk that insurers assume through the
insurance and annuity contracts they underwrite
QUESTION 8
Expense loading - ANSWERS-The amount charged to cover each policy's share of
the expenses of operation
QUESTION 9
Business risk - ANSWERS-The risk that changes in a company's external
environment will affect its operations
QUESTION 10
Exploit risk - ANSWERS-Taking advantage of an opportunity presented by a risk
QUESTION 11
Risk taxonomy - ANSWERS-The classification and aggregation of all risks across
an organization based on each risk's core, defining characteristics
END OF
PAGE 3
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
General management risk (C-4 risk) - ANSWERS-The risk of losses resulting from
the insurer's ineffective general business practices or from the need to pay a special
assessment to cover another insurer's unsound business practices
QUESTION 2
RBC Ratio - ANSWERS-Total adjusted capital (TAC) / Risk based capital (RBC)
QUESTION 3
Receivership - ANSWERS-A court appoints a third party to take control of an
insurer's assets and liabilities
QUESTION 4
END OF
PAGE 1
, LOMA 371 EXAM 2024
Financial analysis and solvency tracking (FAST) system - ANSWERS-A
collection of analytical solvency tools that include a ratio based evaluation system
established by the NAIC that is based on ratio analysis of an insurer's most recent
financial statements & analysis of a five year history of specific aspects of an
insurer's financial statement
QUESTION 5
Administrative supervision - ANSWERS-A legal condition under which an insurer
may be required to obtain the insurance commissioner's permission before taking
any of a variety of specified aftions
QUESTION 6
Guaranty association - ANSWERS-An organization that operates under the
supervision of the state insurance commissioner to protect policyowners, insureds,
beneficiaries, annuitants, payees, and assignees against losses that may result from
the impairment or insolvency of an insurer in that state
QUESTION 7
END OF
PAGE 2
, LOMA 371 EXAM 2024
Underwriting risk - ANSWERS-The specific risk that insurers assume through the
insurance and annuity contracts they underwrite
QUESTION 8
Expense loading - ANSWERS-The amount charged to cover each policy's share of
the expenses of operation
QUESTION 9
Business risk - ANSWERS-The risk that changes in a company's external
environment will affect its operations
QUESTION 10
Exploit risk - ANSWERS-Taking advantage of an opportunity presented by a risk
QUESTION 11
Risk taxonomy - ANSWERS-The classification and aggregation of all risks across
an organization based on each risk's core, defining characteristics
END OF
PAGE 3
