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LOMA 371 — Risk Management and Product Design for Insurance Companies

Course Type: Course Portal, Designation
Topics: Finance & Accounting, Life Insurance
Designations: FLMI, PFLP
Language: Chinese (simplified), Chinese (traditional), English, French, Portuguese



Overview

LOMA 371 describes technical product design for life insurance and annuities and the current state of risk management in insurance companies.

Topics

  • Financial Orientation to Life Insurance Companies
  • Risk Management in Life Insurance Companies
  • Controlling Expenses and Risks in Operations
  • Financial Modeling in Insurance Companies
  • New Products and Product Development
  • Technical Product Design, Product Introduction, and Product Monitoring
  • Incorporating Operating Expenses into Product Design
  • Time Value of Money
  • Cash Values and Accumulation Values
  • Mortality Tables and Assumptions
  • Managing Mortality Risk
  • Life Insurance Product Designs
  • Annuity Product Designs
  • Dynamic Applications in Product Modeling
  • Profitability Measures
  • Define the terms solvency and insolvency; interpret the relationships between profit and risk, and profitability and solvency; explain how the objectives of different stakeholders for an insurance company affect the company’s decisions regarding profit and risk.
  • Differentiate between regulatory capital, rating agency capital, and economic capital, and describe the general areas of solvency regulation for life insurance companies, including balance sheet risk exposures, financial statement review, and financial condition examinations.
  • Discuss risks insurers commonly face when developing new products, including interest-rate risk, credit risk, market risk, and currency risk; understand how risk management strategies such as diversification, cash-flow matching, duration matching, and hedging are deployed to offset these risks.
  • Describe the three primary components of financial models and identify the types of variables used, how values are assigned to these variables, and how simulation and extrapolation are used to produce outputs.
  • Describe the product development process and the cross-functional teams that participate in product development, as well as the basic stages and elements of the product development process, including conducting comprehensive business analysis, feasibility studies, and market analysis; developing marketing plans; setting product design objectives; and forecasting project costs and returns.
  • Distinguish between an insurer’s general account portfolio and its separate account portfolio and define investment concepts such as price appreciation, price depreciation, rate of return, and rules-based reserve valuation vs. principles-based reserve valuation for statutory accounting.

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

Study Materials

Risk Management and Product Design for Insurance Companies, Second Edition (LOMA, 2012)
ISBN 978-1-57974-392-5

Test Preparation Guide for LOMA 371 (LOMA, 2012)
ISBN 978-1-57974-393-2

Optional printed textbook (not included in bundled fee)

Risk Management and Product Design for Insurance Companies, Second Edition (LOMA, 2012)
ISBN 978-1-57974-392-5
PBD Order # 371-10-12

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:

2017

PBD Worldwide
P.O. Box 930108
Atlanta, Georgia 31193-0108
Tel: 1-800-887-3723 or 770-280-4178
Fax: 770-280-4150
Email: LNH@pbd.com
Website: www.lomabookstore.com

Additional textbook order forms

Forms include applicable mailing and contact information

2017

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 371 video
LOMA 371