Search Our Site

Become a Program Member!

LOMA

FLMI Insurance Education Program

• Organization description
  (titles of all evaluated learning experiences, organization description, and source of official student records)

• Titles of all evaluated learning experiences in the FLMI Education Program

• Descriptions and credit recommendations

Accounting and Financial Reporting in Life Insurance Companies (LOMA 361)
(Formerly Accounting and Financial Reporting in Life Insurance Companies [FLMI 361])
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 1: January 1997 - June 2002.* Version 2: July 2002 - Present.
Objectives: Version 1 or 2: Describe the basic accounting functions in life and health insurance companies; distinguish between GAAP and statutory accounting practices and explain their importance to insurers, regulators, and other parties; recognize and know how to use the major financial reports developed and used by insurers; apply accounting principles to record and report typical insurance transactions; recognize the importance and application of management accounting, budgeting and cost accounting; explain how to conduct and interpret financial statement analyses using financial ratios; explain the purposes of auditing and internal accounting controls.
Instruction: Version 1: The accounting function; accounts and the double entry system; the accounting cycle; the conceptual framework of financial accounting; the annual report; an overview of the annual statement; accounting for invested and other assets; accounting for liabilities: reserves; accounting for policy benefits and other liabilities; accounting for capital, surplus, revenues, and expenses; the time value of money; management and cost accounting;  budgeting; responsibility accounting; financial statement analysis; internal control and auditing. Version 2: Accounting information; the accounting cycle; accounting concepts and principles; internal control and auditing; responsibility accounting; cost accounting; cost analysis; budgeting; financial statements and reports; accounting for invested assets; accounting for other assets; accounting for reserves; accounting for liabilities other than reserves; accounting for capital and surplus; accounting for revenues; accounting for expenses; financial ratio analysis of life insurance companies; regulatory monitoring of life insurance companies.
Credit recommendation: Version 1 or 2: In the lower division baccalaureate/associate degree category, 3 semester hours in Financial Accounting or as Survey of Accounting for Non-accounting Majors (12/97) (6/02 revalidation) (1/08 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to March 1997, have been recommended for credit. Please refer to Accounting in Life and Health Insurance Companies (FLMI 360) under > FLMI Courses with Inactive Credit Recommendationsfor further information or contact National PONSI.

Financial Services Environment (LOMA 351)
(Formerly Financial Services Environment [FLMI 351];  Economics and Investments [FLMI 350])
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: September 1998 - Present.*
Objectives: Apply basic microeconomic and macroeconomic concepts to understanding consumer behavior and financial services operations; interpret graphs illustrating demand and supply; distinguish among the major types of money market and capital market instruments used by individuals and businesses; describe the origin, behavior, and structure of interest rates; describe the major types of financial institutions, including the products they offer and typical assets and liabilities of each; comprehend the problem of asymmetric information and describe its impact on the financial services environment; discuss steps that financial institutions can take to manage the risks they face; describe how financial institutions create money and how central banks control the supply of money in an economy.
Instruction: Economic constraints and production possibilities; market characteristics, structures and institutions; supply, demand and equilibrium; maximizing profit; understanding interest rates; theory of portfolio choice; theory of efficient capital markets; financial innovation; the foreign exchange market; money, capital and mortgage markets; theory of financial structure; commercial banks; savings and loans and credit unions; banking regulation; insurance companies and pension funds; finance companies and financial conglomerates; securities markets and firms; risk management in financial institutions; financial derivatives; introduction to the money supply process; central banks and the conduct of monetary policy.
Credit recommendation: In the upper division baccalaureate degree category, 3 semester hours in Finance (12/99) (12/04 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to August 1998, have been recommended for credit. Please refer to Economics and Investments (FLMI 350) under FLMI Courses with Inactive Credit Recommendations for further information. NOTE: This course is also listed under the FFSI Education Program.

Insurance Administration (LOMA 301)
Formerly Insurance Administration (FLMI 301)
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 1: June 1997 - June 2002. Version 2: July 2002 - Present. 
Objectives: Version 1: Describe the insurance administration activities associated with underwriting individual and group life and health insurance; explain how reinsurance works and identify the fundamentals of administering reinsurance agreements; explain the process of administering claims for life, medical, and disability income insurance and recognize situations that may involve misrepresentation or fraud; recognize the importance of customer service and describe ways to provide quality service; describe the process of administering annuities. Version 2: Describe the insurance administration activities associated with underwriting individual and group life and health insurance; explain how reinsurance works and identify the fundamentals of administering reinsurance agreements; explain the process of administering claims for life, medical, long-term care, and disability income insurance and recognize situations that may involve misrepresentation or fraud; recognize the importance of customer service and describe ways to provide quality service. 
Instruction: Version 1: Scope and organization of underwriting; legal issues affecting underwriting; factors in underwriting individual life and health insurance; factors in underwriting specialized policies and supplemental coverages; group insurance underwriting principles and procedures; scope and organization of reinsurance; bases and plans of reinsurance; reinsurance treaties; reinsurance administration; scope and organization of claims; administering life, medical, LTC, and disability income insurance; claim administration; handling claim fraud; scope and organization of policy owner service; practices of policy owner service; administering annuities. Version 2: Overview of insurance administration; scope and organization of underwriting; legal issues affecting underwriting; underwriting individual life and health insurance; personal and financial factors for individual life insurance; underwriting specialized policies and supplemental coverages; underwriting group coverage; scope and organization of reinsurance; reinsurance forms and treaties; reinsurance administration; scope and organization of claim administration; administering life, medical, long-term care, disability income, and critical illness claims; scope and organization of customer service; customer service practices.
Credit recommendation: Version 1 or 2: In the lower division baccalaureate/associate degree category 3 semester hours in Insurance (12/97) (6/02 revalidation) (1/08 revalidation).

Insurance Company Operations (LOMA 290)
(Formerly Insurance Company Operations [FLMI 290]; Life and Health Insurance Company Operations [FLMI 290]; Life and Health Insurance Company Operations [Course 2]; also known as Life Company Operations [Part 2])
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 3: June 1986 - November 1995.* Version 4: December 1995 - October 2000. Version 5: November 2000 - Present.
Objectives: Version 3 or 4: Describe the organization of insurance companies and the environments in which they operate; define the function of specific company operations such as marketing, actuarial, underwriting, and financial activities. Version 5: Describe the essential operations of life insurance companies, including identifying target customers, developing and distributing products, underwriting, administering claims, protecting solvency, managing information, and making strategic decision; describe the types of customer service activities performed for life insurance customers; describe the regulatory environment in which insurance companies operate; explain the role of the accounting, information management, and human resource management functions in a life insurance company; describe the interactions among various functional areas of an insurance company.
Instruction: Version 3 or 4: Insurance companies and their environment; insurance company organization and structure; insurance company functions: administration, actuarial, claims, marketing, underwriting, policy owner service, legal, investment and accounting, information systems, human resources. Version 5: Company operations and ethics; regulation and the financial services industry; company formation; organization structure; managing information; identifying customers and their needs; developing new products; pricing; distributing products; supporting distribution; underwriting basics; customer service; administering claims; financial management; investments; accounting and financial reporting; legal operations and compliance; strategic planning.
Credit recommendation: Version 3: In the lower division baccalaureate/associate degree category, 2 semester hours in Insurance (1/75) (5/85 revalidation) (5/90 revalidation). NOTE: If this course and Principles of Life and Health Insurance (Course 1) are both completed, a total of 3 semester hours in Insurance in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 4: In the lower division baccalaureate/associate degree category, 2 semester hours as a General Elective (12/95 revalidation). NOTE: If this course and Principles of Life and Health Insurance (FLMI 280) are both completed, a total of 3 semester hours as a General Elective in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 5: In the lower division baccalaureate/associate degree category, 3 semester hours as a General Elective (1/01 revalidation) (7/06 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to May 1986, have been recommended for credit. Please consult the 1990 and 1992 print editions for further information or contact National PONSI.

Life and Health Insurance Marketing (LOMA 320)
(Formerly Marketing Life and Health Insurance [FLMI 320]; Marketing Life and Health Insurance [Course 4]; also known as Marketing Life and Health Insurance [Part 9‑MK])
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 2: January 1989 - October 2000.* Version 3: November 2000 - December 2004. Version 4: January 2006 - Present.
Objectives: Version 2: Define and explain basic marketing concepts and principles; apply marketing concepts and principles to the life and health insurance industry. Version 3: Discuss how strategic marketing principles and practices are applied in the life and health insurance industry; explain methods used by insurers to strengthen and improve customer relationships; explain how life and health insurance products are developed, priced, and distributed; explain how insurance companies use advertising and other product promotion; describe the regulatory environment surrounding life and health insurance; discuss the role that ethics plays in insurance marketing; explain the challenges facing insurers in marketing products in a global marketplace. Version 4: Describe the environment in which life and health insurers conduct their marketing activities; discuss how strategic marketing principles and practices are applied in the life and health insurance industry; explain methods used by insurers to strengthen and improve customer relationships; explain how insurers gather and manage marketing information; explain how life and health insurance products are developed, priced, and distributed; explain how insurance companies advertise and promote their products; describe the regulatory environment surrounding life and health insurance; explain the marketing challenges facing insurers operating in a global marketplace; discuss the role that ethics plays in insurance marketing; explain the marketing challenges facing insurers operating in a global marketplace.
Instruction: Version 2: Marketing’s role in society and business: planning; research; market segmentation; consumer behavior; products; distribution channels; pricing; promotion. Marketing functions in life and health insurance: product development; market research; distribution; group and special markets. Version 3: The marketing environment; marketing planning; information management and marketing research; consumer behavior; market segmentation; relationship marketing; product development; pricing; distribution systems; personal selling, advertising, sales promotion, and publicity; regulatory influences; international marketing. Version 4: This course covers marketing principles and the functions of marketing as an integral aspect of the life and health insurance industry. Topics covered include: Regulatory and other environmental influences on insurance marketing; international marketing of insurance; planning marketing goals; organizing, implementing, and controlling marketing activities; market segmentation and target marketing; marketing research and marketing information systems; product development and pricing; customer behavior and customer relationship marketing; distribution channels and strategies; insurance producer licensing and compensation; advertising, promotion, and selling.
Credit recommendation: Version 2 or 3: In the lower division baccalaureate/associate degree category or in the upper division baccalaureate degree category, 3 semester hours as an elective in Business Administration or Insurance (3/84)  (5/90 revalidation) (12/95 revalidation) (1/01 revalidation). Version 4: In the upper division baccalaureate degree category, 3 semester hours as Marketing in a Business or Insurance curriculum (7/06 revalidation). *NOTE: An earlier version of this course, dating from December 1981 to December 1988, has been recommended for credit. Please consult the 1994 print Directory for further information or contact National PONSI. NOTE: This course and Financial Services Marketing (LOMA 326) overlap in content. Credit is recommended for the completion of only one course.

Management Principles and Practices (LOMA 330)
(Formerly Management Principles and Practices [FLMI 330]; Management of Organizations and Human Resources [FLMI 330]; also known as Management of Organizations and Human Resources [Course 5])
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 2: June 1989 - October 2000.* Version 3: November 2000 - October 2004. Version 4: November 2004 - Present.
Objectives: Version 2 or 3: Explain basic management concepts and principles within the organizational context and the environments within which organizations operate; apply the management functions of planning, organizing, leading, and controlling in organizational contexts. Version 4: All objectives of Version 2 or 3; in addition, explain the importance and functions of information systems in insurance companies; explain basic descriptive and inferential statistics and basic management models for use in decision making.
Instruction: Version 2: Introduction to management theory; external environment of organizations; social responsibility and ethics; strategic planning and decision-making; division of work; human resource management; motivation, performance, and satisfaction; leadership; communication; financial control; productivity control; information systems and control; performance appraisals; international management. Version 3: The nature of management; evolution of management thought; the changing environment of management; putting quality first; social and ethical responsibility; planning, decision making, and problem solving; organizing, managing human resources, and communicating; motivating, leading, and team building; groups and communication; control and operations management; international management. Version 4: All topics in Version 3; in addition, Using descriptive and inferential statistics to manage information; using decision theory and linear programming to manage information; applying management science models to business operations.
Credit recommendation: Version 2, 3, or 4: In the lower division baccalaureate/associate degree category or in the upper division baccalaureate degree category, 3 semester hours in General Management (4/86) (5/90 revalidation) (12/95 revalidation) (1/01 revalidation) (7/06 revalidation) (1/08 revalidation). NOTE: This course is not recommended for credit in Human Resource Management. *NOTE: An earlier version of this course, dating from July 1985 to May 1989, has been recommended for credit. Please consult the 1994 print Directory for further information or contact National PONSI. NOTE: This course overlaps with Agency Administration (AIAA 200). If both courses are completed, a total of 4 semester hours is recommended.

Managing for Solvency and Profitability in Life Insurance Companies (LOMA 371)
(Formerly Managing for Solvency and Profitability in Life Insurance Companies [FLMI 371]) 
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 1: June 1996 - June 2002. Version 2: July 2002 - Present. 
Objectives: Version 1:  Recognize the importance of solvency and profitability and how they are measured in an insurance company context; understand the economic and financial implications of risk/return trade-off and the trade-off between current profit and long-term growth; identify the factors insurers must consider when developing and pricing products to ensure that products are both profitable and competitive in the financial services marketplace; understand and use asset-share models to price products profitably; explain the effects of new business strain on reserves and capital; understand the fundamentals of how capital management and asset/liability management are applied in insurance companies; apply various tools for monitoring financial performance and understand the role of rating agencies and regulations in solvency surveillance; understand the complexity of the financial underpinnings of a life and health insurance company; describe the importance of expense control and revenue growth to a company's long-term success and what today's companies are doing in these areas. Version 2: Recognize the importance of solvency and profitability and how they are measured; understand the risk-return tradeoff in finance; identify factors insurers consider when designing life insurance and annuity products; use an asset-share model to gain greater understanding of product profitability; explain the effects of surplus strain on insurers; explain how mortality affects life insurance and annuity benefit costs; describe how company expenses affect product design and company profitability; describe approaches insurance companies use for managing their capital; explain how insurance companies raise new capital from outside of the company. 
Instruction: Version 1: Introduction to solvency and profitability; balancing returns with solvency; creating forecasts and developing assumptions; planning and designing financial products; the time value of money; product profitability measures and asset-share models; pricing products to reflect expenses and investment income; pricing products to reflect insurance risk; reserves; introduction to capital management; capital planning; internal sources of capital; issuing financial instruments; uses of reinsurance; tools of monitoring financial performance; orientation to asset/liability management; solvency surveillance by regulators; restructuring the corporate form; keys to profitability. Version 2: Profit and profitability for insurance companies; risks insurers face; measuring financial strength; external monitoring of solvency and claims-paying ability; regulatory provisions addressing financial distress; introduction to capital management; planning for capital needs; internal sources of capital; issuing equity and debt securities; reinsurance for capital management; expense control and profitability; restructuring the corporate form; how insurers develop new products; technical product design; operating expenses and product design; mortality tables and the mortality charge; investment earnings and interest; interest and future values; interest and present values; life insurance premiums-bundled products; costs of annuities and universal life insurance; product modeling and asset share-models; assumptions in product models; contractual reserves and cash values.
Credit recommendation: Version 1 or 2: In the upper division baccalaureate degree category, 3 semester hours as an elective in Finance or Insurance (12/97) (6/02 revalidation) (1/08 revalidation).

Principles of Insurance: Life, Health, and Annuities (LOMA 280)
(Formerly Principles of Insurance: Life, Health and Annuities [FLMI 280], Formerly Principles of Life and Health Insurance [Course 1]; also known as Principles of Life Insurance [Part 1]);
Location: Independent study and proficiency examination program administered from the central offices of LOMA.
Length: Independent study.
Dates: Version 3: June 1988 - November 1995.* Version 4: December 1995 - October 2000. Version 5: November 2000 - Present.
Objectives: Version 3 or 4: Identify basic principles of insurance; describe the process of becoming insured and the policy-owner’s contractual rights; describe basic features of life insurance, health insurance, and annuity products. Version 5: Explain how life and health insurance help people manage risk; describe the features of individual and group life and annuity coverages, riders, policy provisions, and settlement options; identify and describe the major types of managed care coverages and compare plan features with features of traditional indemnity health plans; distinguish among various types of retirement income and pension plans.
Instruction: Version 3 or 4: Nature of insurance; characteristics of an insurable risk; basic factors in pricing life insurance; basic types of life insurance; purchasing life insurance; delivery systems; the application process; underwriting, issue, and delivery; life insurance policy provisions; payment of insurance proceeds; introduction to health insurance, group insurance, annuities, and retirement plans. Version 5: Regulation of the insurance industry; introduction to risk and insurance; pricing life insurance; individual life coverages and supplementary benefits; life insurance policy provision; claims; principles of group insurance; group life insurance; annuities; individual and group retirement plans; medical expense and disability insurance; traditional group and individual health policies; health insurance providers; managed care plans.
Credit recommendation: Version 3: In the lower division baccalaureate/associate degree category, 2 semester hours in Health Administration or Insurance (1/75) (5/85 revalidation) (5/90 revalidation). NOTE: If this course and Life and Health Insurance Company Operations (Course 2) are both completed, a total of 3 semester hours in Insurance in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 4: In the lower division baccalaureate/associate degree category, 2 semester hours as a General Elective (12/95 revalidation). NOTE: If this course and Life and Health Insurance Company Operations (FLMI 290) are both completed, a total of 3 semester hours as a General Elective in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 5: In the lower division baccalaureate/associate degree category, 2 semester hours as a General Elective (1/01 revalidation) (7/06 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to May 1988, have been recommended for credit. Please consult the 1990 print Directory for further information or contact National PONSI. NOTE: This course and Principles of Financial Services and Products (LOMA 286) overlap in content. Credit is only recommended for the completion of one course.

Updated 1/7/08