LOMA 281 Module 1 Questions with
Complete Solutions
National association of insurance commissioners A nongovernmental organization
consisting of the insurance commissioners or superintendents of the various state insurance
departments.
Model bills A sample law that state insurance regulators are encouraged to use as a basis
for state insurance laws.
National conference of insurance legislators Helps state insurance legislators discuss
insurance issues and pass model laws.
Interstate insurance product regulation commission Enables member states to develop
uniform national standards for insurance products.
Certificate of authority A license that grants an insurer the right to conduct insurance
business in a given state.
, Market conduct laws A state law that regulates how insurance companies conduct their
business within a state.
Life and health guaranty association An organization that operates under the supervision
of the state insurance commissioner to protect policyowners, insureds, beneficiaries, and
specified others against losses that result from the financial impairment of insolvency of a life or
health insurer that operates in the state.
Contract A legally enforceable agreement between two or more parties.
Lapse The termination of coverage under an insurance policy when the renewal premium
has not been paid on time.
Unilateral contract A contract for which only one party makes legally enforceable
promises when entering into the contract.
Bilateral contract A contract for which both parties make legally enforceable promises
when they enter into the contract.
Complete Solutions
National association of insurance commissioners A nongovernmental organization
consisting of the insurance commissioners or superintendents of the various state insurance
departments.
Model bills A sample law that state insurance regulators are encouraged to use as a basis
for state insurance laws.
National conference of insurance legislators Helps state insurance legislators discuss
insurance issues and pass model laws.
Interstate insurance product regulation commission Enables member states to develop
uniform national standards for insurance products.
Certificate of authority A license that grants an insurer the right to conduct insurance
business in a given state.
, Market conduct laws A state law that regulates how insurance companies conduct their
business within a state.
Life and health guaranty association An organization that operates under the supervision
of the state insurance commissioner to protect policyowners, insureds, beneficiaries, and
specified others against losses that result from the financial impairment of insolvency of a life or
health insurer that operates in the state.
Contract A legally enforceable agreement between two or more parties.
Lapse The termination of coverage under an insurance policy when the renewal premium
has not been paid on time.
Unilateral contract A contract for which only one party makes legally enforceable
promises when entering into the contract.
Bilateral contract A contract for which both parties make legally enforceable promises
when they enter into the contract.
