Front Cover
Table of Contents
Preface
Acknowledgments
LOMA 280 Text Review Panel
LOMA 280 Course Project Team
Introduction
Using the Test Preparation Guide
Chapter 1: Introduction to Risk and Insurance
The Concept of Risk
Risk Management
Avoiding Risk
Controlling Risk
Transferring Risk
Accepting Risk
Insurance
Managing Risks through Insurance
Characteristics of Insurable Risks
Insurance Underwriting
Insurable Interest Requirement
Chapter 2: The Life and Health Insurance Industry
Insurance Company Organization
Types of Business Organizations
Types of Insurance Company Organizations
Insurance Companies as Financial Institutions
Financial Intermediaries
Evolution of the Financial Services Industry
Role of Government in Insurance
Social Insurance Programs
Regulation of Insurance
Taxation
Chapter 3: The Insurance Contract
Fundamentals of Contract Law
Types of Contracts
General Requirements for a Contract
The Policy as Property
Right to Use and Enjoy Property
Right to Dispose of Property
Chapter 4: Life Insurance Premiums
The Legal Reserve System
Establishing Premium Rates
Cost of Benefits
Operating Expenses
Investment Earnings
Financial Models
The Level Premium System
Chapter 5: Term Life Insurance
Needs Met by Life Insurance
Personal Needs
Business Needs
Term Life Insurance
Characteristics of Term Life Insurance Products
Plans of Term Life Insurance Coverage
Features of Term Life Insurance Policies
Chapter 6: Cash Value Life Insurance and Endowment Insurance
Whole Life Insurance
Premium Payment Periods
Modified Whole Life Insurance
Whole Life Insurance Covering More Than One Insured
Universal Life Insurance
Separation of Policy Elements
Operation of a Universal Life Insurance Policy
Flexibility Features
Periodic Statements
Indexed Universal Life Insurance
Variable Life Insurance
Variable Universal Life Insurance
Endowment Insurance
Chapter 7: Supplemental Benefits
Supplemental Disability Benefits
Waiver of Premium for Disability Benefit
Waiver of Premium for Payor Benefit
Disability Income Benefit
Accident Benefits
Accidental Death Benefit
Accidental Death and Dismemberment Benefit
Accelerated Death Benefits
Terminal Illness Benefit
Dread Disease Benefit
Long-Term Care Insurance Benefit
Benefits for Additional Insureds
Spouse Insurance Rider
Childrenβs Insurance Rider
Second Insured Rider
Insurability Benefits
Guaranteed Insurability Benefit
Paid-Up Additions Option Benefit
Chapter 8: Individual Life Insurance Policy Provisions
Standard Policy Provisions
Free-Look Provision
Entire Contract Provision
Incontestability Provision
Grace Period Provision
Reinstatement Provision
Misstatement of Age or Sex Provision
Provisions Unique to Cash Value Policies
Policy Loans and Policy Withdrawals
Nonforfeiture Provision
Life Insurance Policy Exclusions
Chapter 9: Life Insurance Policy Ownership Rights
Naming the Beneficiary
Primary and Contingent Beneficiaries
Changing the Beneficiary
Mode of Premium Payment
Policy Dividends
Cash Dividend Option
Premium Reduction Dividend Option
Policy Loan Repayment Dividend Option
Accumulation at Interest Dividend Option
Paid-Up Additional Insurance Dividend Option
Additional Term Insurance Dividend Option
Transfer of Policy Ownership
Transfer of Ownership by Assignment
Transfer of Ownership by Endorsement
Death of the Policyowner
Right to Receive Policy Proceeds
Identifying Who Is Entitled to Policy Proceeds
Calculating the Amount of the Policy Proceeds
Paying Policy Proceeds under a Settlement Option
Chapter 10: Introduction to Annuities
Important Annuity Terms
Types of Annuity Contracts
Immediate and Deferred Annuities
Single-Premium and Flexible-Premium Annuities
Fixed and Variable Annuities
Other Types of Fixed Annuities
Annuity Contract Provisions
Standard Annuity Contract Provisions
Standard Deferred Annuity Contract Provisions
Chapter 11: Annuities and Individual Retirement Arrangements
Annuity Features
Annuity Options
Annuity Guarantee Riders
Financial Aspects of Annuities
Determining Annuity Payment Amounts
Fees and Charges for Annuities
Taxation of Annuities
Individual Retirement Arrangements
Chapter 12: Health Insurance Products
Medical Expense Coverage
Traditional Medical Expense Insurance
Government-Sponsored Medical Expense Coverage
Managed Care Plans
Consumer-Driven Health Plans
The Patient Protection and Affordable Care Act
Disability Income Coverage
Types of Disability Income Insurance
Definitions of Total Disability
Elimination Period
Benefit Amounts
Supplemental Disability Benefits
Exclusions
Specialized Types of Disability Coverage
Long-Term Care Coverage
Important Features of LTCI Policies
Benefits of LTCI Policies
Chapter 13: Principles of Group Insurance
Group Insurance Contracts
Certificates of Insurance
Eligibility Provisions
Group Insurance Underwriting
Reason for the Groupβs Existence
Size of the Group
Flow of New Members into the Group
Stability of the Group
Participation Levels
Determination of Benefit Levels
Nature of the Business
Group Insurance Premiums
Premium Amounts
Premium Refunds
Group Plan Administration
Chapter 14: Group Life Insurance and Group Retirement Plans
Group Life Insurance
Group Life Insurance Policy Provisions
Group Life Insurance Plans
Group Retirement Plans
Components of a Retirement Plan
Types of Qualified Retirement Plans
Other Types of Retirement Plans
Government-Sponsored Retirement Plans
Glossary
Index