COURSE OBJECTIVES

In this course, you will learn to:

• Define economics and explain the primary sectors that make up local, national, and global economies, as well as the different types of financial institutions and the roles they play in the economy.
• Describe the three types of insurance companies — stock, mutual, and fraternal benefit societies — and how their products can satisfy one or more of the four basic financial needs of customers.
• Explain the steps in the control process and describe the important control mechanisms insurance companies use to measure, evaluate, and improve their operational performance, including risk management, profitability, and solvency.
• Understand key financial concepts such as simple and compound interest, minimum reserve requirements, minimum capital standards, required and risk-free rates of return, risk premium, the rule of 72, and future and present value calculations.
• Describe how insurers can use benchmarking, total quality management (TQM), Six Sigma, lean management, and Business Process Reengineering (BPR) to improve operating efficiency, and how they use outsourcing, enhanced information technology, and remote work accommodations to reduce operating expenses.
• Explain how changes in price levels due to inflation, deflation, or increasing/decreasing market interest rates can affect insurance or financial services institutions.
• Recognize essential information contained in the income statement and the balance sheet, as well as the purpose of cash flow and owners’ equity statements and Annual Reports.
• Describe the ratio-based systems used by regulators and rating agencies to monitor and evaluate insurance company solvency and profitability.
• Describe the three primary elements of a financial model and explain how insurers can use modeling to forecast future financial conditions.

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

• The LOMA 307 proctored exam has 60 questions and a time limit of 2 hours. It is available in I*STAR and paper exam formats.

STUDY MATERIALS

• Business and Financial Concepts for Insurance Professionals, Second Edition (LL Global, Inc., 2018)

      ISBN 978-1-57974-459-5

• Test Preparation Guide for LOMA 307 (LL Global, Inc., 2018)

      ISBN 978-1-57974-460-1

• Business and Financial Concepts for Insurance Professionals, Second Edition (LL Global, Inc., 2018)

      ISBN 978-1-57974-459-5

TOPICS:

• The Role of Insurance in the Economy
• Insurance Company Management
• Managing Solvency and Profitability
• Product Design and the Time Value of Money
• Achieving Operational Efficiency
• How the Economy Affects Insurance Companies
• Financial Reports and Plans
• Understanding Financial Ratios
• Presenting Data Visually
• Analyzing Population Data
• Analyzing Sample Data