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LOMA 286 — Principles of Financial Services and Products

Course Type: Traditional Designation Course
Topics: Financial Services & Financial Planning
Designations: AFSI, AIAA, AIRC, ARA, FFSI, FFSI Level I
Language: Chinese (simplified), Chinese (traditional), English


The major categories of financial services — cash management, credit, asset protection, asset accumulation and management, and asset distribution — form the framework for LOMA 286, which surveys banking, insurance, and investment products.


  • Categories of Financial Services
  • Types of Financial Institutions
  • Government’s Role in the Financial Services Industry
  • Convergence, Consolidation, and Globalization
  • Time Value of Money
  • Basic Tax Concepts
  • Risk-Return Tradeoff
  • Managing Risk Through Insurance
  • Diversification
  • Opportunity Costs
  • Cash Management Products
  • Credit Services
  • Life, Health, Property and Liability Insurance
  • Securities
  • Annuities
  • Tax-Advantaged Savings Plans
  • Employer-Sponsored Retirement Plans

Chapter 1: The Financial Services Industry

Financial Services

Categories of Financial Services and the Needs They Fulfill

Advice as a Financial Service

Traditional Financial Institutions

Depository Institutions

Finance Companies

Insurance Companies

Mutual Funds

Securities Firms

Government's Role in the Financial Services Industry

Social Insurance


Evolution of the Financial Services Industry




Chapter 2: Financial Services Concepts

The Time Value of Money



Basic Tax Concepts

Effects of Taxes on the Time Value of Money

Exclusions, Credits, Deductions and Deferrals

The Risk-Return Tradeoff



Managing Risk Through Insurance

Characteristics of Insurable Risks

Insurability of Specific Risks


Opportunity Costs

Chapter 3: Cash Management

Needs Fulfilled by Cash Management Products

Ready Access to Funds

Safety of Funds


Low Cost

Wide Acceptance

Checking Accounts

Features of Checking Accounts

Types of Checking Accounts

Money Market Accounts

Super NOW Accounts

Money Market Deposit Accounts

Money Market Mutual Funds

Asset Management Accounts

Savings Accounts and Instruments

Savings Accounts

Certificates of Deposit

Savings Bonds

Electronic Funds Transfer Services

Debit Cards

Smart Cards and Stored-Value Cards

Preauthorized Deposits and Payments

Online Banking Services

Chapter 4: Credit Services

Advantages and Disadvantages of Credit

Managing Default Risk

Interest and the Cost of Credit

Fixed and Variable Interest Rates

Finance Charges and Annual Percentage Rates

Noninstallment Credit

Single-Payment Loans

Open-End Credit

Installment Credit

Installment Loan Payments


Reverse Mortgages

Chapter 5: Individual Life Insurance and Supplemental Benefits

Needs Met by Life Insurance

Personal Needs

Business Needs

Types of Individual Life Insurance

Term Life Insurance

Cash Value Life Insurance

Endowment Insurance

Supplemental Benefits for Individual Life Insurance Policies

Disability Benefits

Accident Benefits

Accelerated Death Benefits

Benefits for Additional Insureds

Insurability Benefits

Chapter 6: Individual Life Insurance Policy Provisions and Pricing

Individual Life Insurance Policy Provisions

Provisions Typical of All Types of Policies

Provisions Unique to Cash Value Policies

Individual Life Insurance Pricing

Premium Rates

Premium Amounts

Level Premium Pricing System

Chapter 7: Group Life Insurance

Fundamentals of Group Life Insurance

Types of Group Life Insurance

Group Tem Life Insurance

Group Accidental Death and Dismemberment

Group Cash Value Life Insurance

Group Creditor Life Insurance

Supplemental Benefits for Group Life Insurance Policies

Group Insurance Policy Provisions

Group Life and Health Policy Provisions

Group Life Insurance POlicy Provisions

Group Insurance Pricing

Premium Rates

Premium Amounts

Premium Refunds

Chapter 8: Types of Health Insurance

Medical Expense Coverage

Traditional Medical Expense Coverage

Government-Sponsored Medical Expense Coverage

Managed Care Plans

Consumer-Driven Health Care

Disability Income Coverage

Government-Provided Disability Income Coverage

Disability Income Coverage

Chapter 9: Health Insurance Policy Provisions and Pricing

Health Insurance Policies

Health Insurance Policy Provisions

Individual Health Insurance Policy Provisions

Group Health Insurance Policy Provisions

Pricing Health Insurance

Premium Payments

Paying Individual Health Insurance Premiums

Paying Group Health Insurance Premiums

Chapter 10: Property and Liability Insurance

Personal Property Insurance

Homeowners Insurance

Automobile Insurance

Personal Liability Insurance

Commercial Property and Liability Insurance

Chapter 11: Securities

Product Characterisitics




Mutual Funds

Investment Accounts

Brokerage Accounts

Managed Accounts

Chapter 12: Individual Annuities

Types of Annuity Contracts

Immediate and Deferred Annuities

Single-Premium and Flexible-Premium Annuities

Fixed and Variable Annuities

The Annuity Contract

Annuity Contract Provisions for the Accumulation Period

Enhanced Variable Annuity Benefits


Financial Design of Annuities

Factors Affecting Periodic Income Payments

Annuity Fees and Charges

Annuity Share Classes

Chapter 13: Tax-Advantaged Savings Plans

Taxation of Tax-Advantaged Savings Plans

Tax-Advantaged Retirement Savings Plans

Individual Retirement Savings Plans

Employer-Sponsored Retirement Plans

Retirement Savings Plans for Small Businesses and the Self-Employed

Chapter 14: Employer-Sponsored Retirement Plans

Characteristics of Employer-Sponsored Retirement Plans

Plan Coverage, Eligibility, and Participation

Plan Funding

Plan Documentation

Plan Administration

Retirement Benefits

Benefit Formulas

Retirement Ages

Distribution of Benefits

Investment Arrangements for Retirement Plans


Group Insurance Contracts



Course Format

Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.

Exam Information

The LOMA 286 exam has 75 questions and a time limit of 3 hours. It is available in I*STAR, Prometric and Paper exam (offered in May) formats.

Study Materials

Principles of Financial Services and Products (LOMA, 2004)
ISBN 1-57974-205-X
PBD Order # 286-10-04

Test Preparation Guide for LOMA 286 (LOMA, 2004)
ISBN 1-57974-206-8
PBD Order # 286-40-04

How to Enroll

Traditional Course Access

LOMA's traditional-access designation courses teach industry topics using printed study materials and proctored examinations. Study materials include print textbooks and Test Preparation Guides (TPGs) with printed and electronic versions of the course's Practice Questions and Sample Exam. Enrollment for an I*STAR, Prometric or Paper exam is purchased separately through LOMANET.