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LOMA 311 — Business Law for Financial Services Professionals

Course Type: Course Portal, Designation
Topics: Compliance & Legal, Financial Services & Financial Planning, Life Insurance
Designations: ACS, AIRC, ARA, FLMI
Language: Chinese (simplified), Chinese (traditional), English


LOMA 311 presents the basic features and principles of the legal environment in which financial services companies around the world operate.


  • The Legal Environment of Business
  • Civil Disputes
  • Business Organizations
  • Regulation of Business
  • Contract Law
  • Agency Law
  • Property Law
  • Commercial Transactions & Bankruptcy
  • Regulation of Financial Services Companies
  • Sale of Financial Services Products
  • Ownership of Financial Services Products

Module 1: Introduction to Business Law (Chapters 1–2)

Chapter 1: The Legal Environment of Business

Sources of Law



Administrative Regulations

Treaties and International Agreements

Case Law

Legal Systems

Common Law Systems

Civil Law Systems

Mixed Legal Systems

Court Systems

State Court Systems

Federal Court System

Business Ethics

Chapter 2: Civil Disputes

Civil Litigation Process

The Parties

Procedural Stages

Tort Law

Intentional Torts


Strict Liability

Civil Remedies

Legal Remedies

Equitable Remedies


Alternative Dispute Resolution

Module 2: Organization and Regulation of Business (Chapters 3–5)

Chapter 3: Business Organizations

Types of Business Organizations

Sole Proprietorships



Formation of a Corporation

Operating and Managing a Corporation

Board of Directors



Changing the Corporate Structure

Dissolution of a Corporation

Legal Environment of International Business

Chapter 4: Regulation of Business

Antitrust Regulation

Basic Economic Concepts

U.S. Antitrust Laws

International Antitrust Regulation

Consumer Protection Regulation

Consumer Credit Protection

Unfair Trade Practices

Electronic Commerce Regulation

Electronic Signatures, Contracts, and Records


Conflict of Laws

Employment Regulation

Employment Relationship

Workplace Standards

Nondiscrimination Requirements

Required Benefits

Chapter 5: Regulation of Financial Services Companies

Regulation of Holding Companies

Insurance Holding Companies

Financial Holding Companies

Regulation of Insurance

State Regulation

Federal Regulation of Insurance

International Insurance Regulation

Regulation of Banking

Federal Banking Laws

State Banking Laws

International Banking Standards

Regulation of Securities

Registration Requirements

Regulation of the Sale of Securities

Privacy Protection Laws

U.S. Privacy Laws

International Privacy Laws

Module 3: Areas of Business Law (Chapters 6–9)

Chapter 6: Contract Law

Sources of Contract Law

Types of Contracts

Formal and Informal Contracts

Bilateral and Unilateral Contracts

Commutative and Aleatory Contracts

Bargaining Contracts and Contracts of Adhesion

General Requirements for a Contract

Mutual Assent


Contractual Capacity

Lawful Purpose

International Laws

Defenses to the Formation of a Contract

Contract Performance and Breach

Form of the Contract

Rules of Contract Construction

Parol Evidence Rule

Chapter 7: Agency Law

The Agency Relationship

Agency Agreement

Effect of Agency Relationship

Capacity of the Parties

Agent’s Duties to the Principal

Loyalty and Good Faith




Principal’s Remedies

Principal’s Duties to the Agent




Agent’s Remedies

Principal’s Liabilities to Third Parties

Principal’s Contract Liability

Principal’s Tort Liability

Agent’s Liabilities to Third Parties

Agent’s Contract Liability

Agent’s Warranty of Authority

Agent’s Tort Liability

Termination of an Agency Relationship

Termination by Act of a Party

Termination by Mutual Agreement

Termination by Performance of Agreement

Termination by Operation of Law

Principal’s Duty to Notify Third Parties

Chapter 8: Property Law

Types of Property

Property Ownership

Acquiring Property Ownership

Forms of Property Ownership

Restrictions on Ownership

Transfers of Ownership Rights

Real Estate Sales

Real Estate Leases

Testamentary Transfers

Intellectual Property




Chapter 9: Commercial Transactions and Bankruptcy

Sales of Goods

Contract Formation

Remedies for Contract Breach

Negotiable Instruments

Required Formalities


Holder in Due Course

Liabilities of the Parties

Credit and Secured Transactions

Perfecting a Security Interest

Rights of the Parties


Liquidation Proceedings

Rehabilitation Proceedings

Module 4: Sale and Performance of Financial Services Products (Chapters 10–15)

Chapter 10: Sale of Financial Services Products

Life Insurance Contract Formation

Mutual Assent

Adequate Consideration

Contractual Capacity

Lawful Purpose: Insurable Interest

Policy Delivery

Entire Contract

Temporary Insurance Agreements

Types of Temporary Insurance Agreements

Courts’ Interpretations of Premium Receipts

Formation of an Annuity Contract

Insurance Producers’ Role

Agency Agreement

Regulatory Requirements

Mutual Fund Sales

Chapter 11: Ownership of Financial Services Products

Ownership of Individual Life Insurance

Right to Name the Beneficiary

Premium Payments

Nonforfeiture Benefits

Policy Loans and Policy Withdrawals


Ownership of Annuities

Ownership of Mutual Fund Shares

Account Registration

Ownership Rights

Chapter 12: Rights of Third Parties

Ownership Transfers


Change of Ownership Provision

Creditors’ Rights in Life Insurance

Judgment Creditors

Creditor as Policyowner or Beneficiary

Trust Agreements

Types of Trusts

Reasons for Establishing a Trust

Life Insurance Policy Settlement Options

Chapter 13: Policy Contests and Civil Remedies

What Is a Policy Contest?

Elements of a Material Misrepresentation

Duty to Disclose

Known Facts

Material to the Insurance

Barriers to a Contest on the Grounds of Material Misrepresentation

Incontestability Provision

Knowledge of the Agent

Delay by the Insurer

Failure to Inquire

Copy of the Application

Other Grounds for Contesting a Contract

Defect in the Formation of the Contract


Beneficiary Wrongfully Kills the Insured


Legal Remedies

Equitable Remedies

Chapter 14: Contract Performance

Performance of the Annuity Contract

Structured Settlements

Performance of the Life Insurance Contract

Standard Claim Procedures

Special Claim Situations

Claim Litigation

Chapter 15: Group Products

Group Life Insurance Contracts

Formation of the Group Life Insurance Contract

The Group Master Contract

Regulation of Group Life Insurance




Group Retirement Plans

Regulation of Retirement Plans

Retirement Plan Funding Instruments

Retirement Plan Administration

Retirement Plan Termination



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

Study Materials

Business Law for Financial Services Professionals, Second Edition (LOMA, 2012)
ISBN 978-1-57974-396-3

Test Preparation Guide for LOMA 311 (LOMA, 2012)
ISBN 978-1-57974-397-0

Optional printed textbook (not included in bundled fee)

Business Law for Financial Services Professionals, Second Edition (LOMA, 2012)
ISBN 978-1-57974-396-3
PBD Order # 311-10-12

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.

See the LOMA 311 video
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