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LOMA 280 — Principles of Insurance

Course Type: Course Portal, Traditional Designation Course
Topics: Life Insurance
Designations: ACS, AIAA, AIRC, ALMI, ARA, CPLHI, DLHI, FLMI, LCIC, PFLP, PFSL, FLMI Level I
Language: Arabic, Bahasa Indonesia, Chinese (simplified), Chinese (traditional), English, French, Korean, Portuguese, Spanish


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.

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

Module 1: Basic Principles of Insurance

Chapter 1: Introduction to Risk and Insurance

The Concept of Risk

Risk Management

Avoiding Risk

Controlling Risk

Transferring Risk

Accepting Risk

Insurance

Managing Risks through Insurance

Characteristics of Insurable Risks

Insurance Underwriting

Insurable Interest Requirement

Chapter 2: The Life and Health Insurance Industry

Insurance Company Organization

Types of Business Organizations

Types of Insurance Company Organizations

Insurance Companies as Financial Institutions

Financial Intermediaries

Evolution of the Financial Services Industry

Role of Government in Insurance

Regulation of Insurance

Social Insurance Programs

Taxation

Chapter 3: The Insurance Contract

Requirements for an Informal Contract

Mutual Assent

Legally Adequate Consideration

Lawful Purpose

Contractual Capacity

Types of Contracts

Bilateral and Unilateral Contracts

Commutative and Aleatory Contracts

Bargaining Contracts and Contracts of Adhesion

Chapter 4: Financial Design of Life Insurance Products

The Legal Reserve System

Elements of a Product's Financial Design

Cost of Benefits

Investment Earnings

Operating Expenses

Conservative Values in Financial Design

Premium Rates

Level Premium System

Module 2: Individual Life Insurance

Chapter 5: Term Life Insurance

Needs Met by Life Insurance

Personal Needs

Business Needs

Term Life Insurance

Characteristics of Term Life Insurance Products

Plans of Term Life Insurance Coverage

Features of Term Life Insurance Policies

Chapter 6: Cash Value Life Insurance and Endowment Insurance

Whole Life Insurance

Premium Payment Periods

Modified Whole Life Insurance

Whole Life Insurance Covering More Than One Insured

Universal Life Insurance

Separation of Policy Elements

Operation of a Universal Life Insurance Policy

Flexibility Features

Periodic Reports

Variable Life Insurance

Variable Universal Life Insurance

Endowment Insurance

Chapter 7: Supplemental Benefits

Supplemental Disability Benefits

Waiver of Premium for Disability Benefit

Waiver of Premium for Payor Benefit

Disability Income Benefit

Accident Benefits

Accelerated Death Benefits

Terminal Illness Benefit

Dread Disease Benefit

Long-Term Care Insurance Benefit

Benefits for Additional Insureds

Spouse Insurance Rider

Children's Insurance Rider

Insurability Benefits

Guaranteed Insurability Benefit

Paid-up Additions Option Benefit

Module 3: Individual Life Insurance Policy Provisions and Ownership Rights

Chapter 8: Individual Life Insurance Policy Provisions

Standard Policy Provisions

Free-Look Provision

Entire Contract Provision

Incontestability Provision

Grace Period Provision

Reinstatement Provision

Misstatement of Age or Sex Provision

Provisions Unique to Cash Value Policies

Policy Loans and Policy Withdrawals

Nonforfeiture Provision

Life Insurance Policy Exclusions

Chapter 9: Life Insurance Policy Ownership Rights

Naming the Beneficiary

Primary and Contingent Beneficiaries

Changing the Beneficiary

Mode of Premium Payment

Policy Dividends

Cash Dividend Option

Premium Reduction Option

Premium Loan Repayment Option

Accumulation at Interest Option

Transfer of Policy Ownership

Transfer of Ownership by Assignment

Transfer of Ownership by Endorsement

Right to Receive Policy Proceeds

Identifying Who is Entitled to Policy Proceeds

Calculating the Amount of the Benefit Payable

Paying Policy Benefits Under a Settlement Option

Module 4: Annuities

Chapter 10: Annuities

Introduction to Annuities

Types of Annuity Contracts

Immediate and Deferred Annuities

Single-Premium and Flexible-Premium Annuities

Fixed and Variable Annuities

Annuity Contract Provisions

Deferred Annuity Contract Provisions

Guaranteed Benefits

Fees and Charges

Payout Options

Factors Affecting Amount of Periodic Income Payments

Taxation of Annuities

Individual Retirement Arrangements

Module 5: Group Life Insurance and Group Retirement Plans

Chapter 11: Principles of Group Insurance

Group Insurance Contracts

Formation of the Contract

Certificates of Insurance

Eligibility Provisions

Group Insurance Underwriting

Reason for the Group's Existence

Size of the Group

Flow of New Members into the Group

Stability of the Group

Participation Levels

Determination of Benefit Levels

Nature of the Business

Group Insurance Premiums

Premium Amounts

Premium Refunds

Group Plan Administration

Chapter 12: Group Life Insurance and Group Retirement Plans

Group Life Insurance

Group Life Insurance Policy Provisions

Group Life Insurance Plans

Group Retirement Plans

Components of a Retirement Plan

Types of Retirement Plans

Government-Sponsored Retirement Plans

Module 6: Health Insurance

Chapter 13: Health Insurance

Medical Expense Coverage

Traditional Medical Expense Coverage

Managed Care Plans

Government-Sponsored Medical Expense Coverage

Disability Income Coverage

Types of Disability Income Coverage

Definitions of Total Disability

Elimination Period

Benefit Amounts

Supplemental Disability Benefits

Exclusions

Specialized Types of Disability Coverage

Long-Term Care Coverage

Benefit Triggers

Long-Term Care Benefits

Chapter 14: Health Insurance Policies

Individual Health Insurance Policies

Individual Health Insurance Policy Provisions

Financial Design of Individual Health Insurance Products

Group Health Insurance Policies

Group Health Insurance Policy Provisions

Group Health Insurance Underwriting

Funding Mechanisms

Glossary

Index

Course Format

Course Portals include the following elements:

  • PDFs of the assigned course materials that can be printed or read online
  • The same interactive Practice Questions and Sample Exams currently found in LOMA Test Preparation Guides (TPGs)
  • Recommended study plans to help learners set goals and manage their study schedule
  • A variety of additional media-oriented features designed to enhance the study and review process

Exam Format

The LOMA 280 exam has 60 questions and a time limit of 2 hours. It is available in I*STAR, Prometric and Paper exam formats.

Study Materials

Principles of Insurance (LOMA, 2011)
ISBN 978-1-57974-351-2

Test Preparation Guide for LOMA 280 (LOMA, 2011)
ISBN 978-1-57974-352-9

Optional printed textbook (not included in bundled fee).

Principles of Insurance (LOMA, 2011)
ISBN 978-1-57974-351-2
PBD Order # 280-10-11

About Bundled Study Materials

Some courses ("bundled courses") include study materials with your enrollment. A growing list of English-language courses include access to bundled study materials.

For some of these courses, once you enroll, you gain access to the study materials through your My Learning page in LOMANET. These include the Course Portal courses and the Need 2 Know courses.

How to Enroll

Enrolling for Exams and Bundled Courses

LOMA requires proctored examinations for many of its professional designation courses. Exams are administered in LOMA member organizations and in independent testing locations. This section provides information about exam formats, enrollment procedures for both exams and bundled courses, and exam fees.

LOMA exams vary in length from two–three hours. Consult your Test Preparation Guide (TPG) or see the Designation Study Materials Roadmap for specific information about the length of your exam. As new or revised LOMA courses are released, the number of examination questions for some course examinations may change. If you enroll for a bundled course delivered through a LOMA Course Portal, the assigned study materials are included in your enrollment and are accessible via the Course Portal. Your enrollment process will depend on the type of examination you choose to take:

LOMA offers two options for exam enrollment:

  • Online enrollment via LOMANET, our Internet-based education administration system
  • Enrollment forms for paper exams, for use by independent students only, can be found here.

I*STAR and Paper Exam Center Directories for testing at third-party locations

Retakes

Students who fail exams must pay full dates to retake the exams, in most cases. However, bundled courses (those courses that include exam fees and study materials) have a reduced rate to retake the exam. See LOMA’s Education & Training Catalog for fees.


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LOMA 280
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