100+ Free LOMA 290 Practice Questions

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The management function that involves comparing actual results to planned objectives and taking corrective action when needed is known as:

Staffing

Planning

Controlling

Organizing

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Key Facts: LOMA 290 Exam

Multiple-Choice Questions

LOMA 290 Course Page

120 min

Time Limit

LOMA 290 Course Page

70%

Pass Mark

LOMA Exam Information

16+ hrs

Estimated Study Time

LOMA 290 Course Page

FLMI L1

Certificate Program

LOMA Designations

I*STAR

Proctored Delivery

LOMA 290 Course Page

LOMA 290 Insurance Company Operations is a foundation course in the FLMI Level 1 Certificate in Insurance Fundamentals. The proctored exam is delivered through I*STAR or on paper, has 60 discrete multiple-choice questions, allows 120 minutes, and requires a score of 70% to pass. It covers company organization and governance, the global environment and regulation, marketing and distribution, product development and pricing, underwriting and new business, policyowner service and claims, reinsurance, information technology and operations, and financial and accounting support functions. LOMA does not publish a pass rate and estimates 16+ hours of study.

Sample LOMA 290 Practice Questions

Try these sample questions to test your LOMA 290 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In an insurance company's organizational structure, the principle that every employee should report to and receive instructions from only one immediate supervisor is known as:

A.Unity of command

B.Span of control

C.Delegation of authority

D.Departmentalization

Explanation: Unity of command is the classic organizing principle stating that each employee should be accountable to only one direct supervisor, which prevents conflicting instructions and clarifies accountability. LOMA 290 presents this alongside other organizing concepts such as chain of command and delegation.

2A life insurance company that grants its functional managers broad authority to make decisions without first obtaining approval from top management is using which type of organizational structure?

A.A centralized organization

B.A decentralized organization

C.A matrix organization

D.A line-and-staff organization

Explanation: A decentralized organization pushes decision-making authority down to lower levels and functional managers, increasing responsiveness and speed. A centralized organization, by contrast, concentrates authority at the top of the company.

3In a typical insurance company, units that contribute directly to producing and delivering the company's products, such as marketing and underwriting, are best classified as:

A.Staff units

B.Advisory units

C.Line units

D.Compliance units

Explanation: Line units carry out the activities that directly create and deliver the company's products and services. Staff units, such as human resources and legal, support line units but do not directly produce the product.

4The number of employees or activities that a single manager can effectively supervise is referred to as the manager's:

A.Chain of command

B.Accountability ratio

C.Authority level

D.Span of control

Explanation: Span of control describes how many subordinates or activities a manager can supervise effectively. A wide span of control tends to flatten an organization, while a narrow span produces more management layers.

5A stock life insurance company is owned by its:

A.Stockholders

B.Policyowners

C.Board of directors

D.Senior management

Explanation: A stock insurance company is owned by its stockholders (shareholders), who supply capital and elect the board of directors. By contrast, a mutual insurance company is owned by its policyowners.

6Corporate governance in a life insurance company refers primarily to the system by which the company is:

A.Marketed to consumers

B.Directed and controlled

C.Funded through investments

D.Audited by regulators

Explanation: Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled, balancing the interests of stakeholders such as owners, regulators, and policyowners. The board of directors sits at the center of this system.

7In an insurance company, the group elected by the owners to oversee the company's overall direction and to which senior officers report is the:

A.Audit committee

B.Executive marketing council

C.Board of directors

D.Policyowner advisory panel

Explanation: The board of directors is elected by the owners to govern the company, set overall direction, and hold senior management accountable. Committees such as the audit committee operate as subgroups of the board.

8A company's mission statement is best described as a broad declaration of the company's:

A.Quarterly financial targets

B.Detailed organizational chart

C.List of regulatory filings

D.Fundamental purpose and reason for existence

Explanation: A mission statement expresses the company's fundamental purpose, the reason it exists, and the value it intends to provide. It guides strategic planning and shapes the company's long-term direction.

9The management function that involves comparing actual results to planned objectives and taking corrective action when needed is known as:

A.Controlling

B.Planning

C.Organizing

D.Staffing

Explanation: Controlling is the management function of monitoring performance, comparing actual results against established standards or plans, and taking corrective action when results deviate. It closes the loop with the planning function.

10Strategic planning in a life insurance company is primarily concerned with establishing the company's:

A.Daily transaction-processing procedures

B.Long-term goals and overall direction

C.Individual employee performance reviews

D.Specific underwriting decisions on applications

Explanation: Strategic planning sets the company's long-term goals and overall direction, typically over a multi-year horizon, and aligns major resources to achieve them. Operational and tactical planning address shorter-term, more detailed activities.

About the LOMA 290 Exam

LOMA 290 describes how life insurance companies operate in a global environment: how they are organized and managed, and the roles functional and support units play in developing, distributing, issuing, and administering life insurance and annuity products. The proctored exam has 60 multiple-choice questions in 120 minutes.

Questions

60 scored questions

Time Limit

120 minutes (2 hours)

Passing Score

70% to pass

Exam Fee

LOMA course and exam fees vary by membership status and jurisdiction; confirm current pricing in the LOMA catalog (LOMA (LL Global) via I*STAR or paper exam)

LOMA 290 Exam Content Outline

Operational core

Company Organization and Structure

Company forms (stock, mutual, holding company), line and staff units, and organizing principles such as unity of command, span of control, delegation, chain of command, centralization, and decentralization.

Operational core

Management and Governance

Corporate governance, board of directors, executive leadership, the management functions of planning, organizing, controlling, and staffing, mission statements, and strategic, tactical, and operational planning.

Operational core

Global Environment and Regulation

Global operating environment, globalization, demutualization, financial-services convergence, state insurance regulation, legal and compliance functions, privacy, ethics, anti-money-laundering, and market conduct.

Operational core

Marketing and Distribution

Marketing function, market segmentation, distribution channels including career agency, brokerage, direct response, and bancassurance, distribution support, producer licensing, compensation, suitability, and advertising compliance.

Operational core

Product Development and Pricing

Product development lifecycle, feasibility studies, design, actuarial pricing assumptions of mortality, interest, and expenses, reserves, policy-form filing, and regulatory approval.

Operational core

Underwriting and New Business

Underwriting function, risk classification, standard, substandard, and preferred risks, underwriting information sources, field and teleunderwriting, group underwriting, and new-business operations.

Operational core

Policyowner Service and Claims

In-force administration, policy loans, nonforfeiture options, free-look and contestable-period provisions, surrender, persistency, claims administration, adjudication, fraud investigation, and beneficiary payment.

Operational core

Reinsurance

Reinsurance basics, ceding and assuming companies, treaty versus facultative reinsurance, retention limits, and the objectives of increasing capacity and stabilizing results.

Operational core

Information Technology and Operations

IT and systems support, information security, business intelligence, operations management, outsourcing, workflow and straight-through processing, knowledge management, and total quality management.

Operational core

Financial and Accounting Support

Investment function, asset-liability matching, general and separate accounts, reserves, surplus, statutory accounting, GAAP and IFRS, the annual statement, risk-based capital, internal audit, human resources, and enterprise risk management.

How to Pass the LOMA 290 Exam

What You Need to Know

Passing score: 70% to pass
Exam length: 60 questions
Time limit: 120 minutes (2 hours)
Exam fee: LOMA course and exam fees vary by membership status and jurisdiction; confirm current pricing in the LOMA catalog

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

LOMA 290 Study Tips from Top Performers

1Learn the roles of each functional and support unit and how they cooperate to develop, distribute, issue, and administer products.

2Memorize the organizing principles, such as unity of command, span of control, delegation, and the difference between line and staff units.

3Distinguish closely related terms, such as treaty versus facultative reinsurance, statutory versus GAAP accounting, and general versus separate accounts.

4Use the LOMA 290 Test Preparation Guide chapter objectives to structure your review and self-test after each chapter.

5Practice multiple-choice questions under a timed setting to build the pace needed for 60 questions in 120 minutes.

6Aim well above the 70% pass mark on practice sets so you have a comfortable margin on exam day.

Frequently Asked Questions

How many questions are on the LOMA 290 exam?

The LOMA 290 proctored exam has 60 multiple-choice questions. Candidates have 120 minutes to complete it, whether they sit the I*STAR computer-based version or the paper version.

What is the LOMA 290 passing score?

A score of 70% is required to pass the LOMA 290 proctored exam and earn course credit toward LOMA designations such as the FLMI Level 1 Certificate.

How long is the LOMA 290 exam?

Candidates are given 120 minutes (2 hours) to answer the 60 multiple-choice questions on the LOMA 290 proctored exam.

What does LOMA 290 cover?

LOMA 290 covers how life insurance companies operate, including organization and governance, regulation, marketing and distribution, product development, underwriting, policyowner service, claims, reinsurance, information technology, and financial and accounting support functions.

Which designation does LOMA 290 count toward?

LOMA 290 is part of the FLMI Level 1 Certificate in Insurance Fundamentals and counts toward LOMA designations including ALMI, FLMI, ACS, AIRC, and Associate, Reinsurance Administration.

How is the LOMA 290 exam delivered?

LOMA 290 is a proctored exam offered through I*STAR computer-based testing or as a paper exam. It consists entirely of discrete multiple-choice questions.

How much study time does LOMA 290 require?

LOMA estimates 16 or more hours of study for LOMA 290. Many candidates spread this over several weeks using the textbook, Insurance Company Operations, and the LOMA 290 Test Preparation Guide.

Does LOMA publish a LOMA 290 pass rate?

LOMA does not publish a pass rate for LOMA 290. The key benchmark candidates should focus on is achieving 70% or higher on the proctored exam.