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Corrections to Current LOMA Educational Program Texts(Updated: February 4, 2021)Corrections that are DATED apply to titles that were printed or downloaded prior to the date of the correction.These corrections have been made to the electronic files (PDFs / e-books / Interactive Study Aids) but may not bereflected in versions that were downloaded and/or printed prior to the correction date. It is the student’sresponsibility to check for text corrections prior to taking an examination based on a LOMA text. Corrections toolder editions are included in this list for six months following introduction of a new CoursesEnglishEnglishLOMA 280SRI 500ACS 100 FRPFSL 280LOMA 280 FRPFSL 290LOMA 290 FRPFSL 307LOMA 290LOMA 301LOMA 307LOMA 311LOMA 320LOMA 335LOMA 357LOMA 361LOMA 371OtherAssociateProgramsLOMA 307 FREnglishLOMA 316 FRACS 100LOMA 320 FRARA 440LOMA 356 FRUND 386LOMA 371 FR

LOMA 280:Principles of InsuranceEnrollments purchased on or after January 3, 2017 are based on Principles of Insurance, SecondEdition ( 2017).1. 2/7/2020 - On page 8.15, in the second paragraph, the sentence“For the same reason, when a policy is reinstated, a new suicide exclusion periodgenerally begins to run from the date of reinstatement”should be replaced with:“When a policy is reinstated, a new suicide exclusion period may begin, or the insurermay continue the suicide exclusion period from the original policy, depending upon thepolicy wording.”Test Preparation Guide for LOMA 280 (2017)2. 1/13/2018 -- Pages 49 and 51: Some copies of the Test Preparation Guidemay show an incorrect answer for Chapter 14, Practice Question # 10. Thecorrect answer should be 2 (not 1). This error appears only in copies of the TestPreparation Guide that were downloaded and printed prior to 1/13/18, andthose that were professionally printed and sold to select customer groups.Back to Index

LOMA 290:Insurance Company OperationsEnrollments purchased on or after October 1, 2018 are based on Insurance Company Operations,Fourth Edition ( 2019).1. 10/11/2019 – On page 2.1, Learning Objective 2D reads, “Explain how insurers use ethicstraining to address the issues of insider training and compliance with privacy and confidentialityrequirements.”It should read, “Explain how insurers use ethics training to address the issues of insider tradingand compliance with privacy and confidentiality requirements.”2. Chapter 7, page 7.1: Industry terminology has changed; in Learning Objective 7D,please substitute the term “statutory accounting principles” for the term “statutoryaccounting practices.”3. Chapter 7, pages 7.7 and 7.9: Industry terminology has changed. Please substitute theterm “statutory accounting principles” wherever the term “statutory accountingpractices” appears.4. 1/22/2019 - The FAST Act has amended the Gramm-Leach-Bliley Act. On page 12.23,under Privacy Legislation, please change this sentence:“The Gramm-Leach-Bliley (GLB) Act is a federal law that requires insurance companiesto disclose the insurer’s policies for obtaining and sharing customers’ nonpublic personinformation at the beginning of the relationship and once a year afterwards To“The Gramm-Leach-Bliley (GLB) Act is a federal law that requires insurance companiesto disclose the insurer’s policies for obtaining and sharing customers’ nonpublic personinformation at the beginning of the relationship. Insurers are also required toprovide the notice at least once a year afterwards, unless specific conditions aremet ”

5. 1/22/2019 - On Glossary.17, please add the bold, italicized phrase to the definition ofGramm-Leach-Bliley (GLB) Act:A U.S. federal law that requires insurance companies to disclose the insurer’s policiesfor obtaining and sharing customers’ nonpublic personal information at the beginning ofthe relationship and at least once a year afterwards, unless specified conditions aremet, and to allow customers to opt out of information sharing with unaffiliated thirdparties. [12]Test Preparation Guide for LOMA 290 (2019)1. On p. 33, Learning Objective 7.D. Industry terminology has changed. Please substitutethe term “statutory accounting principles” wherever the term “statutory accountingpractices” appears (Chapter 7, practice questions #6 and #7 on pp. 33-34, and theSample Examination question #45 on p. 83).Back to Index

LOMA 301:Insurance AdministrationEnrollments purchased on or after July 1, 2018 are based on Insurance Administration, Fifth Edition(2018)1. 1/22/2019 - On page 2.4-5, under Gramm-Leach-Bliley Act, please change the second sentence toread, “The GLB Act requires insurers to disclose policies for obtaining and sharing customers’nonpublic personal information at the beginning of a relationship. Insurers must also provide thenotice at least annually thereafter, unless specific conditions are met.”2. 2/7/2020 - On page 12.10, in the first bullet, replace these sentences:“After reinstatement of a lapsed policy, the suicide exclusion period specified in the original policygoverns whether benefits are payable. As a result, if a lapsed policy is reinstated before the end ofthe original suicide exclusion period, the exclusion will continue until the end of the specified period.If the policy is reinstated after the end of the original suicide exclusion period, the reinstated policytypically does not include a suicide exclusion.”With these sentences:“After reinstatement of a lapsed policy, the wording of the policy governs whether or not anew suicide exclusion provision begins on the effective date of the reinstatement. Theexclusion period may be dated from the original policy issue date or may begin again fromthe reinstatement date.”3. On page gloss.26 of the glossary, the entry for “right of recommendation” has a typo. Pleasechange “ad” to “and.”4. 3/27/2019 - On page Gloss.29, there is an error in the definition of temporary flat extra premium.The glossary currently reads:Temporary flat extra premium. An flat amount added to the premium for casesin which a personal risk factor is expected to remain constant throughout thelife of the policy. [5]The glossary should readTemporary flat extra premium. An amount added to the premium for a risk factor for which theextra mortality risk is expected to decrease and eventually disappear over a limited period oftime. [5]Back to Index

Test Preparation Guide for LOMA 301 (2018)2/6/2020 - In the Test Preparation Guide (TPG) please note the following modifications to question 3 ofthe chapter 12 practice questions. The revised introduction to the question should read asfollows:Gael Acoca, a resident of the United States, was the policyowner-insured of a life insurance policyissued by the Pageant Insurance Company. Mr. Acoca’s policy included a two-year suicide exclusionperiod. Three years after the policy was issued, Mr. Acoca died as a result of verified suicide. Uponreceipt of a claim for policy proceeds, Pageant most likely would pay.2/6/2020 - In the Test Preparation Guide (TPG) please note the following modifications to question 38of the sample exam. Replace answer choice (1) with the following:In the United States, with regard to life insurance claims involving suicide, it is correct to say that, if aproposed insured commits suicide(1) during the suicide exclusion period and the beneficiary files a lawsuit after the insurerdenies the claim, the insurer bears the burden of proving that the insured committed suicide.Back to Index

LOMA 307:Business and Financial Concepts for Insurance ProfessionalsEnrollments purchased on or after January 2, 2018 are based on Business and Financial Conceptsfor Insurance Professionals, Second Edition ( 2018).1. 3/5/2020 - On page 5.16, in the Example box, there is an error in one of the numbers used inthe calculation. The text currently reads:Analysis:Ardmore’s management fees for these accounts ranged from a minimum of 250 [ 50,000 (0.001 50)] to amaximum of 500 [ 100,000 (0.001 50)].The text should read:Analysis:Ardmore’s management fees for these accounts ranged from a minimum of 250 [ 50,000 (0.0001 50)] toa maximum of 500 [ 100,000 (0.0001 50)].2.2/15/2018 -- In Chapter 4, The Time Value of Money, on page 4.19, there is an error in thecalculation of the example that shows the calculation for the present values of interest rates thatare compounded more frequently than on an annual basis.The incorrect example reads as follows (incorrect numbers are in bold):For their latest venture, Little needs to know how much money to invest now in order to have 2,000 three years from today. This investment will earn 5% interest, compounded semiannually.The formula for the present value of a single sum isPV FV x [1 (1 i)n]Little finds the value for n in this formula by multiplying the number of years—3—by the numberof compounding periods per year—2.n 3x2 6The value for i is found by dividing the interest rate of 5% by the number of compounding periodsper year—which is 2 in this case.i 5% 2 2.5%Now all Little has to do is plug the numbers into the formula, as follows:PV 2,000 x [1 (1 .05)6] 2,000 x [1 (1.05)6] 2,000 x (1 1.34) 2,000 x (.7463) 1,492.60So, Little needs to invest 1,492.60 today, at 5% interest compounded semiannually, in order tohave 2,000 in three years.The example should read (corrected numbers are in bold):Now all Little has to do is plug the numbers into the formula, as follows:

PV 2,000 x [1 (1 .025)6] 2,000 x [1 (1.025)6] 2,000 x (1 1.16) 2,000 x (.8621) 1,724.20So, Little needs to invest 1,724.20 today, at 5% interest compounded semiannually, in order tohave 2,000 in three years.3.2/15/2018 - On page 6.17, in the “Beth Morgan” example, the total commissions listed isincorrect. The text states the total as 7,087, and the correct total should be 7,807.4.2/15/2018 - For the three paragraphs on page 6.18 after Figure 6.5, please note the followinginformation:On June 22, 2018 the Fifth District Court of Appeals in New Orleans issued a final mandatereversing all DOL rule standards that went into effect June 7, 2017. These paragraphs nowprovide historical information about the rule.5.2/15/2018 - On page 8.27, under the heading “Trend Analysis” – Please disregard the followingsentence:Some examples of the trends analyzed are in Figure 8.9.This text does not include a Figure 8.9.6.2/15/2018 - On p. 10.9, the text says “U.S. insurers must also file an annual report with theSecurities and Exchange Commission (SEC) if the company Is a publicly traded stock insurer whose stock is classified as a security Offers variable products, such as variable annuities or variable universal life insurance, thatare classified as securities”This information should read:“The Securities and Exchange Commission (SEC) requires U.S. insurers to publish an annualreport for stockholders and other interested parties if the company7. Is a publicly traded stock insurer Offers variable products, such as variable annuities or variable universal life insurance, thatare classified as securities”2/15/2018 - In the inset example directly following this information, in the Analysis section, allreferences to “file” should say “publish.”