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LOMA 290 — Insurance Company Operations

Course Type: Course Portal, Designation
Topics: Life Insurance, Operations & Administration
Language: Arabic, Bahasa Indonesia, Chinese (simplified), Chinese (traditional), English, French, Korean, Portuguese, Spanish


LOMA 290 describes how life insurance companies operate in today’s global environment: how they are organized, how they are managed, and the roles of functional and support units in developing, distributing, issuing, and administering life insurance and annuity products. Learners who take this course will better understand how an individual job fits into the entire scope of the company as well as the importance of each employee’s contribution to overall organizational success.


  • Insurance Company Organization and Operations
  • Corporate Governance, Ethics, and Control
  • Risk and Risk Management
  • Legal and Compliance
  • Human Resources Management
  • Information and Technology
  • Financial Management
  • Accounting, Treasury Operations, and Auditing
  • Investment Management
  • Marketing
  • Product Development
  • Product Distribution
  • New Business and Underwriting
  • Claim and Annuity Benefit Administration
  • Customer Service

Module 1: Company Organization and Governance

Chapter 1: Organization and Operations

Stakeholders in an Insurance Company






Rating Agencies


Other Stakeholders

Balancing Stakeholder Interests

Levels of Management

Board of Directors

Senior-Level Managers

Lower-Level Managers

Management Functions



Organizing Insurance Operations

Introduction to the Value Chain

Traditional Ways Insurers Organize Work Activities

Profit Centers / Strategic Business Units (SBUs)


Holding Company Systems

Downstream and Upstream Holding Companies

Chapter 2: Corporate Governance, Ethics, and Control

Corporate Governance


Ethics and Ethical Conduct

A Code of Conduct

An Ethics Office



Membership in Associations


Types of Controls

Establishing Performance Standards

Measuring Performance

Module 2: Support Functions

Chapter 3: Legal and Compliance

Organization of Legal and Compliance Functions

Responsibilities of the Legal Department

Responsibilities to the Board

Responsibilities to Internal Functions

Responsibilities to External Parties

Responsibilities of the Compliance Department


Education and Training


Market Conduct Examinations in the United States

Chapter 4: Human Resources Management

Organization of the Human Resources Department

Human Resources Planning

Projecting Staffing Needs

Estimating the Labor Supply


Internal Recruitment

External Recruitment

Employee Selection

Employment Applications and Screening Interviews

Pre-Employment Testing

Employment Interviews

Background Checks and Drug Testing

Training and Development

Performance Evaluation

Establishing Performance Goals

Monitoring and Reviewing Employee Performance

Performance Evaluation Programs

Compensation and Employee Benefits


Chapter 5: Information and Technology

Responsibilities of the IT Department

Organization of the IT Department

Information Management


Database Management Systems

Document Management Systems

Workflow Management Systems

Business Process Technology

Transaction Processing Systems

Business Intelligence

Outsourcing IT Operations



Computer Telephony Integration

Other Telecommunications Technologies

IT Security and Disaster Recovery

Module 3: Financial Functions

Chapter 6: Financial Management

Organization of Financial Management

Accounting and Financial Reporting

Treasury Operations

Investment Operations

Audit and Internal Control

Interdepartmental Responsibilities

Responsibilities of Financial Management

Setting Financial Strategy

Managing Risk

Managing Solvency and Profitability

Managing Capital

Managing Cash Flows

Providing Information to Stakeholders

Financial Compliance

Tools to Monitor Solvency

Chapter 7: Accounting, Treasury Operations, and Auditing

Organization of Accounting, Treasury Operations, and Auditing


Users of Accounting Information

Accounting Systems

Financial Accounting

Management Accounting

Treasury Operations

Cash Management

Liquidity Management


Internal Controls

Chapter 8: Investment Management

Investment Policy

Investment Risk

Risk and Return


Investment Operations

Evaluating an Investment

Buying and Selling Securities

Investment Portfolios

The General Account

Separate Accounts

Types of Investments




Real Estate

Policy Loans

Module 4: Marketing, Product Development, and Distribution

Chapter 9: Marketing

Organization of Marketing

The Marketing Plan

Communicating the Marketing Plan

The Marketing Mix






Basic Insurance Marketing Activities

Identifying Markets

Segmenting Markets

Target Marketing

Target Marketing Strategies

Marketing Information

Internal Databases

Website Traffic Analysis

Competitive and Market Intelligence

Marketing Research

Marketing Environment

Marketing Controls

Chapter 10: Product Development

The Product Development Process

Product Planning

Comprehensive Business Analysis

Technical Design

Product Implementation

Performance Monitoring and Review

Chapter 11: Product Distribution

Personal Selling Distribution Systems


Agent Channel Support

Methods of Personal Selling

Salaried Sales Representatives

Financial Advisors

Third-Party-Institution Distribution Systems


Banks and Other Depository Institutions

Insurance Companies

Direct Response Distribution Systems

Distribution Decisions




Customers’ Characteristics

Product Characteristics

External Marketing Environment

Module 5: Marketing, Product Development, and Distribution

Chapter 12: Underwriting

New Business Processing

Processing Life Insurance Applications

Processing Annuity New Business

Organization of New Business and Underwriting Operations

Purpose of Underwriting

Underwriting Philosophy and Guidelines

The Underwriting Process

Field Underwriting and Teleunderwriting

Medical, Financial, and Personal Underwriting

The Underwriting Decision

Applying the Premium Rate

Control Mechanisms for Underwriting Operations

Authority Levels

Other Underwriting Controls

Company Interrelationships and Underwriting

Group Underwriting

The Group Underwriting Process

Risk Factors for Group Life Insurance

Regulatory Requirements

Chapter 13: Claim and Annuity Benefit Administration

Organization of the Claim Department

Claim Philosophy and Claim Practices

Life Insurance Claim Process

Determining If Benefits Are Payable

Calculating the Amount Payable

Paying the Proceeds

Identifying the Proper Payee

Claim Investigation

Claim Fraud

Quality Control in Claim Processing

Regulatory Requirements

Model Unfair Claims Settlement Practices Act

International Laws

Annuity Administration

Annuity Death Benefit Administration

Annuity Payout Administration

Chapter 14: Customer Service

Organization of the Customer Service Department

Typical Customer Service Job Positions

Customer Service Department Relationships

Effective Customer Service

Education and Training


Customer Relationship Management

Customer Service Processes

Fulfilling Customer Requests

Handling Customer Complaints

Conserving, Up-Selling, and Cross-Selling

Customer Service Processes for Group Products

Control Mechanisms for Customer Service

Qualitative Performance Measurements

Quantitative Performance Measurements



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

Study Materials

Insurance Company Operations, Third Edition (LOMA, 2012)
ISBN 978-1-57974-380-2

Test Preparation Guide for LOMA 290 (LOMA, 2012)
ISBN 978-1-57974-381-9

Optional printed textbook (not included in bundled fee)

Insurance Company Operations, Third Edition (LOMA, 2012)
ISBN 978-1-57974-380-2
PBD Order # 290-10-12

Ordering printed study materials

Most Course Portals include online access to the course’s study materials and do not require purchase of additional printed study materials. However, you can order printed study materials for some designation courses (for an additional cost) via LOMA’s learning system, or by using the textbook order form and information below:

For the United States and Canada, you can order study materials for designation courses through PBD by using the form and information below:


PBD Worldwide
P.O. Box 930108
Atlanta, Georgia 31193-0108
Tel: 1-800-887-3723 or 770-280-4178
Fax: 770-280-4150

Additional textbook order forms

Forms include applicable mailing and contact information


How to Enroll

Enrolling in Courses with Proctored Exams

LOMA requires proctored examinations for many of its professional designation courses. Study materials for these courses are delivered via online Course Portal, and enrollment in the Course Portal also includes enrollment in one of our proctored exam options for the course. Proctored exams are administered in LOMA member organizations and in independent testing locations around the globe. LOMA exams vary in length from two–three hours. Consult the Designation Study Materials Roadmap for specific information about the length of your exam.

Proctored examinations can take one of three forms:

Enrollment Step-by-Step

  1. Log in to your LOMA Learning account using your login ID and password.
  2. Browse the Learning Catalog for the course for which you would like to enroll.
  3. Select ADD TO CART next to the items for which you would like to enroll.
  4. Choose Exam Type — you must choose between Prometric, I*STAR, or Paper Exam enrollment.
    • Select Exam Site — your company’s primary exam site (if applicable) will appear on the screen. To see other available exam sites, click “Search.”
    • Note for Independent Students: Click “Include 3rd party exam sites” to find open exam sites offered by other companies. More information on Independent Student enrollment.
    When you have selected an exam site, click “Save.”
  5. Return to the catalog to continue searching for courses and add additional items to your shopping cart, or click the shopping cart to check out.
    • If you have not already done so, you will be prompted to log in to the LOMA learning system at this time. Once you have successfully logged in, click the shopping cart again to begin the checkout process.
  6. Review your shopping cart. Click CHECK OUT to proceed.
  7. If you are purchasing a physical product (example: a textbook), complete the SHIPPING information screen.
  8. Enter payment information
    • If your company has set up direct billing with LOMA, an account code will appear next to the “Bill My Company” field.
    • If you are using direct-to-company billing method, ensure that the radio button next to the “Bill My Company” field is selected and then click “Next” to continue.
    • If you are paying for your enrollment by credit card, enter all of the required fields for a credit card transaction. Once you have provided all of the required information, click “Next” to continue.
  9. Review your order, accept LOMA’s Terms and Conditions, and click BUY NOW. An enrollment confirmation will be emailed to you.

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LOMA 290
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