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LOMA 291 Module 1 Exam Questions And Answers Latest 2025, Exams of Insurance law

LOMA 291 Module 1 Exam Questions And Answers Latest 2025

Typology: Exams

2024/2025

Available from 02/05/2025

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LOMA 291 Module 1 Exam Questions And
Answers Latest 2025
Stakeholders (constituents) - - -
correct answer A party that has an interest in how a company
conducts its business. Also known as a constituent.
Dividend - - -
correct answer Compensation that a company may pay to owners
upon a vote by the company's board of directors.
Stockholder - - -
correct answer We stockholders expect the company to grow
steadily. We expect to earn a reasonable return, sometimes in the
form of dividends. Do you know what a dividend is? Sometimes the
board of directors votes to make a payment to the stockholders.
The payment is called a dividend.
Policy owner - - -
correct answer Here are some factors I considered when I chose
to buy a policy from Forthright:
Good company reputation
Policy features
Reasonable charges
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Answers Latest 2025

Stakeholders (constituents) - - - correct answer ✅A party that has an interest in how a company conducts its business. Also known as a constituent. Dividend - - - correct answer ✅Compensation that a company may pay to owners upon a vote by the company's board of directors. Stockholder - - - correct answer ✅We stockholders expect the company to grow steadily. We expect to earn a reasonable return, sometimes in the form of dividends. Do you know what a dividend is? Sometimes the board of directors votes to make a payment to the stockholders. The payment is called a dividend. Policy owner - - - correct answer ✅Here are some factors I considered when I chose to buy a policy from Forthright: Good company reputation Policy features Reasonable charges

Answers Latest 2025

Financial strength Customer service Forthright provides my personal safety net because of their good reputation and policy features. They charge me for reasonable expenses and they have the financial strength to be around for the long haul to pay the policy benefits they promise me and my family. So far, I'm pleased with my policy and the company's customer service. financial professional - - - correct answer ✅In insurance sales, any individual—including agents, bank-affiliated sales personnel, and brokers—who is licensed to sell insurance products, solicit sales, or negotiate insurance contracts. Why do I place business with Forthright? Here are some reasons: Forthright's products meet my clients' needs. Forthright offers competitive compensation on the business I sell. Its staff is top notch and provides fast and accurate support.

Answers Latest 2025

I appreciate the salary and benefits. reinsurance - - - correct answer ✅Insurance that one insurance company, known as the direct writer, purchases from another insurance company, known as the reinsurer, to transfer all or part of the risk on insurance policies that the direct writer issued. consultants/vendors example - - - correct answer ✅I'm a public accountant. I provide external audit services to Forthright. Many vendors provide goods and services to Forthright. Borrowers example - - - correct answer ✅I'm a real estate developer. To fund construction projects, I borrow from Forthright Financial. Forthright lends money as one of its investments. They expect to earn a return, so they keep a close eye on me. regulators example - - - correct answer ✅I conduct in-person examinations of insurance companies that do business in my state. I make sure they comply with regulations and maintain fair business practices.

Answers Latest 2025

rating agencies example - - - correct answer ✅I assign a grade to Forthright Financial and other companies. The grade, called a rating, indicates my company's opinion of Forthright's overall health and stability. associations example - - - correct answer ✅As a Forthright actuary, I belong to several organizations that set professional standards. Forthright employs many professionals—actuaries, accountants, auditors, attorneys, underwriters, medical directors, and others. All of these groups have professional associations. Select each group which counts among an insurance company's stakeholders. a. Financial professionals b. Reinsurance companies c. Employees d. Trade associations e. Owners of company stock

Answers Latest 2025

"I need prompt handling of my transactions when I make a withdrawal." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional - - - correct answer ✅A. In each of the following questions, select the person who would most likely make each statement about his or her interests as a stakeholder. "I value having a good job with reliable income and benefits." a. Policyowner b. Stockholder c. Employee d. Reinsurer

Answers Latest 2025

e. Financial professional - - - correct answer ✅C. In each of the following questions, select the person who would most likely make each statement about his or her interests as a stakeholder. "I need Forthright to offer products that meet my clients' needs so that I can earn an income." a. Policyowner b. Stockholder c. Employee d. Reinsurer e. Financial professional - - - correct answer ✅E. In each of the following questions, select the person who would most likely make each statement about his or her interests as a stakeholder.

Answers Latest 2025

Board of directors - - - correct answer ✅A corporation's governing body, elected by the owners, that makes broad policy decisions to ensure that stakeholder interests are safeguarded appropriately. governance - - - correct answer ✅A corporate board's accountability, responsibility, and authority to direct an organization to properly fulfill its missions on behalf of legitimate stakeholders. How does a board of directors safeguard stakeholder interest - - - correct answer ✅- company policy

  • codes of conduct
  • organizational structure
  • compensation arrangements and bonus pay
  • organizational control tools Board transactions - - - correct answer ✅A board's decisions—called policy decisions—give broad guidance to management. Typical policy-making responsibilities of Forthright's board of directors include

Answers Latest 2025

Authorizing a major business transaction, such as a merger Declaring a dividend payable to owners Setting a major company policy Operating permanent committees of the board Evaluating the company's operating results Appointing executives Setting compensation, including incentives, for executive officers board committees - - - correct answer ✅A company's board of directors meets regularly, but, outside of these meetings, permanent committees of the board do important work. These committees set general guidelines and make decisions about how to direct Forthright's resources toward achieving corporate objectives. inside directors - - - correct answer ✅A member of the board of directors who also holds a position within the company.

Answers Latest 2025

e. Evaluate the company's operating results f. Assemble financial reports requested as part of an audit g. Set compensation, including incentives, for executives h. Recruit financial professionals - - - correct answer ✅B, C, D, E, & G- The board of directors is responsible for making broad policy decisions that provide broad guidance to a company's management. Hi. We've met before. I'm Chief Executive Officer of Forthright Financial. I chair the human resources committee and sit on the risk committee. a. Inside director b. Outside director - - - correct answer ✅A. - Grace is an inside director because she holds a position within Forthright Financial. My name's Forrest. I'm retired from a career in securities law, so now my board positions for several companies are my career. I also chair the tax committee of Forthright's board. a. Inside director

Answers Latest 2025

b. Outside director - - - correct answer ✅B. - Forrest is an outside director because he does not hold any other position with Forthright Financial. Ethics - - - correct answer ✅A system of accepted standards of conduct and moral judgment that combines the elements of honesty, integrity, and fair treatment. For most companies, the basic ethical rules start with respecting stakeholders (including employees), competing fairly and within the law, and being a responsible corporate citizen. Basic components of ethical corporate behavior - - - correct answer ✅- Follow accepted legal and moral principles of right and wrong

  • Uphold promises to customers
  • Perform high-quality work in a timely fashion
  • Keep private information confidential tools to support ethical behavior - - - correct answer ✅- effective organizational structure

Answers Latest 2025

Inside information Equal employment opportunity (EEO) Sexual harassment Privacy and data protection Ombudsman - - - correct answer ✅An independent, impartial, and confidential professional who provides ethical guidance on specific problems. Also, a company-wide resource for improving business conduct by sharing best practices and addressing any systemic needs. Inside information for ethical and legal - - - correct answer ✅Ethically and legally, employees may not unfairly profit by the misuse of inside information. Here are some examples: Conducting a transaction in Forthright securities during a blackout period Advising a third party about transactions in Forthright securities based on non-public information Disclosing any non-public information to third parties

Answers Latest 2025

Employees need to keep inside information private, and companies need to provide employees with the resources they need to recognize inside information and understand the importance of keeping it private. Which of the following would Forthright consider to be inside information? Choose all that apply. a. Information published by a rating agency b. Marketing strategies c. Product design assumptions d. Professional standards set by a trade association - - - correct answer ✅B & C - Marketing strategies and product assumptions are examples of inside information. The other types of information are readily available to the public and are therefore not inside information. four functions of management - - - correct answer ✅PLANNING for desired outcomes ORGANIZING tasks, employees, and other resources DIRECTING employees and other resources

Answers Latest 2025

Tactics are the specific tasks and activities employees will perform to support the company's strategies and achieve its goals. Organizing - - - correct answer ✅The management function of establishing authority, responsibility, and accountability for accomplishing various company activities, including assembling people and other company resources. function - - - correct answer ✅A distinct type of work or an aspect of operations or management that requires specialized knowledge or technical skill. line functions - - - correct answer ✅A department or other organizational unit that produces or administers products or services. support functions - - - correct answer ✅A department or other organizational unit that provides support services to line functions or to other support functions but does not produce or administer products. Also called a staff function.

Answers Latest 2025

line functions work unit performs - - - correct answer ✅- product development

  • distribution and sales
  • customer service
  • claims
  • marketing
  • underwriting and new business
  • reinsurance administration
  • actuarial
  • investment management support functions work unit performs - - - correct answer ✅- accounting and financial reporting
  • corporate communications
  • finance
  • information technology
  • risk management
  • audit
  • legal and compliance