LOMA 280 — Principles of Insurance
Financial and Insurance Governance

OVERVIEW

LOMA 280 introduces the principles of insurance, the process of becoming insured, and the policyowner’s contractual rights. The course includes information on the features of individual and group life insurance, health insurance, and annuity products.








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Description


COURSE OBJECTIVES

In this course, you will learn to:

  • Describe the financial services industry and explain how insurance companies — stock, mutual, and fraternal benefit societies — function within that industry, why they are organized as corporations, and how they are regulated by both state and federal governments.
  • Discuss some of the most common terms that characterize the processes and considerations involved in issuing an insurance policy, among them: speculative risk, pure risk, insurable risk, risk classes, insurable interest, anti-selection, mortality tables, contracts, and premiums.
  • Explain the differences among the numerous types of contracts commonly used by insurance companies, including valid, void and voidable, formal and informal, bilateral and unilateral, commutative and aleatory, and contracts of adhesion.
  • Understand the key considerations that drive the product development process, such as mortality, premium rate, cost of benefits, compound interest and return on investment, as well as the type of policy — whole, term, universal, or variable — and provisions of each.
  • Describe additional benefits, features, or restrictions a life insurance policy might include, such as grace period, incontestability, reinstatement, policy loans, exclusions, dividend, non-forfeiture and settlement options, and transfer of ownership, among others.
  • Distinguish among the different types of annuity products and features, as well as the fees, charges, and taxes that apply to annuities, IRAs, and other retirement products.
  • Identify and describe types of group insurance plans and typical provisions and features contained in a group life insurance policy.
  • Discuss various healthcare products, such as managed care, disability income, and long-term care, and the numerous benefits and features of each.

 

COURSE FORMAT

Course portals include the following elements:

  • All the assigned study materials needed for the course
  • Interactive practice questions and sample exams
  • Recommended study plans to help you set goals and manage your study schedule
  • Additional media and features to help in the study and review process

 

EXAM FORMAT

  • The LOMA 280 proctored exam has 60 questions and a time limit of 2 hours. It is available in LOMA's computerized/I*STAR format.

 

STUDY MATERIALS

  • Principles of Insurance, Second Edition (LOMA, 2017)
  • ISBN 978-1-57974-455-7
  • Test Preparation Guide for LOMA 280 (LOMA, 2017)
  • ISBN 978-1-57974-456-4
  • Principles of Insurance, Second Edition (LOMA, 2017)
  • ISBN 978-1-57974-455-7
  • Test Preparation Guide for LOMA 280 (LOMA, 2017)
  • ISBN 978-1-57974-456-4


TOPICS:

  • Introduction to Risk and Insurance
  • The Life and Health Insurance Industry and Its Regulation
  • Life Insurance Policies as Contracts
  • Financial Design of Life Insurance Products
  • Meeting Customer Needs
  • Term Life Insurance
  • Cash Value Life Insurance
  • Supplemental Benefits
  • Individual Life Insurance Policy Provisions
  • Life Insurance Policy Ownership Rights
  • Annuities
  • Principles of Group Insurance
  • Group Life Insurance
  • Group Retirement Plans
  • Health Insurance Overview