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LOMA 357 — Institutional Investing: Principles and Practices

New format now available!

Course Type: Course Portal, Designation, eBook (English only)
Topics: Financial Services & Financial Planning, Institutional Investing, Life Insurance
Designations: FLMI
Language: Chinese (simplified), Chinese (traditional), English


LOMA 357 presents basic investing concepts and the institutional investing process using everyday language. The course provides the information that employees from outside the investments area need to understand how investment management affects other functions in the company and why it’s essential to organizational success. You’ll also learn investing principles that apply to personal investing.


  • Introduction to Investing
  • Overview of Basic Investment Vehicles
  • Advanced Investment Vehicles and Capital Markets
  • Investment Returns and Risks
  • Institutional Investment Objectives and Constraints
  • Risk Management and the Investment Function
  • Portfolio Construction and Asset Selection
  • Portfolio Management and Operations
  • Monitoring and Evaluating Portfolio Performance
  • Regulations and the Investment Function
  • Ethical Standards and Governance for the Investment Function
  • Identify the types of insurance products supported by general account and separate account assets
  • Describe the movement of funds in and out of general and separate accounts
  • Define and describe different ways that investors can measure investment returns
  • Explain how investors use volatility and standard deviation to estimate investment risks and returns
  • Explain how interest-rate risk affects bond investments, interpret interest-rate sensitivity using bond duration
  • Explain how market interest-rate changes can result in margin compression or margin expansion for insurers
  • Explain some of the investment objectives and the investment constraints of life insurance companies
  • Describe insurer investment strategies related to asset-liability management (ALM)
  • Explain how investment professionals create a portfolio’s strategic asset allocation (SAA)
  • Describe diversification and hedging and explain how institutional investors can use each strategy to manage specific risks in portfolios
  • Explain how investment professionals use certain metrics to measure the level of risk that a portfolio has accepted and the portfolio’s risk-adjusted returns
  • Explain how capital adequacy requirements, asset and liability valuation standards, and accounting and financial reporting standards contribute to insurer solvency regulations
  • Describe the effects that the Investments of Insurers Model Acts, investment reserve requirements, and restrictions on general account holdings have on insurers’ investments

Course Format

Course Portals include the following elements:

  • All the assigned study materials needed for the course
  • Interactive Practice Questions and Sample Exams
  • Recommended study plans to help you set goals and manage your study schedule
  • Additional media and features to help in the study and review process

Exam Format

Study materials for this course are delivered via the online Course Portal, and enrollment in the Course Portal also includes enrollment in one of the exam options for the course:

  • Timed, self-proctored end-of-module exams available through the Course Portal. Learners complete a short online exam at the end of each course module. The total number of questions across all end-of-module exams is 60.
  • Proctored end-of-course I*STAR exam. The time limit for the proctored exam is 2 hours and the exam includes 60 questions. Proctored examinations can take one of two forms:
    • Computerized / I*STAR exams at a LOMA member organization
    • Computerized / I*STAR exams at Prometric Testing Centers (available in the United States and Canada only)

The course content is the same regardless of the testing option chosen.

Study Materials

Institutional Investing: Principles and Practices, Second Edition © 2020
ISBN: ISBN 978-1-57974-479-3

LOMA’s e-books include text-based content with interactive and multi-media features. Practice and review questions, videos, and other interactive features are integrated in the e-book content. This creates a more dynamic, engaging way to learn important topics.

The content downloaded to the e-reader will be available indefinitely. Features that are accessible only through the course portal (sample exam, end-of-module exams, etc.) will no longer be available after the 6-month enrollment period.

How to Enroll

Enrolling in a Course with Proctored and Self-Proctored Exam Options

  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. At the bottom of the course description page, choose Exam Type — you must choose between
    • self-proctored, end-of-module exams
    • a proctored, end-of-course I*STAR exam
    Download the "What Exam Format Should I Choose?" flowchart
  4. Select ADD TO CART next to the items for which you would like to enroll.
  5. If you choose the proctored exam option, you must also select your exam site.
    • 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.”
  6. 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.
  7. Review your shopping cart. Click CHECK OUT to proceed.
  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.
What happens if learners make a mistake and choose the wrong testing option?

If, during the enrollment process, you select a testing option by mistake, you must contact LOMA within 72 hours of your enrollment to have the error corrected at no charge.