PMC EXAM QUESTIONS AND ANSWERS
What effect will the long term care rider have on the death benefit of a life insurance
policy If LTC benefits were paid to the insured - Answers :Reduce the death benefit
An insured and his spouse recently had a child which of the following riders would allow
the couple to insure the child for a limited period of time at a specific amount - Answers
:Children's term rider (Lost children to be added to coverage for a limited period of time
for a specific amount)
Which type Insurance policies provides pure life insurance protection without a savings
element - Answers :Term
A licensee fails to earn the required CE credits by the expiration of the 90-day grace
period and the license has been terminated for education how much time does the
licensee have to meet the CE requirements to be considered for license reinstatement?
- Answers :1 year
Which of the following best defines But unfair trade practices of rebating - Answers
:Offering an inducement or something of value not specified in the policy
All the following statements about mutual insurance companies are correct except.
A) policy dividends issued by mutual companies are guaranteed and not taxable
B) dividends allow policyholders to share a mutual companies divisible surplus
C) dividends are return of unused premiums
D) mutual companies issue policies referred to as participating. - Answers :A
How is a licensees date of continuing education credit review determined - Answers :by
the month and date of birth
What is the max civil fine a guilty party may pay for a single violation of the insurance
code - Answers :$5,000
What type of an interest rate is guaranteed in universal life policies. - Answers
:Adjustable interest rate
In contrasting stock insurers with mutual insurers which statement is true. - Answers
:Stock insurer are owned by the shareholders and issue nonparticipating policies
If an insured purchases an insurance policy with a large deductible what risk
management technique is the insured exercising - Answers :Retention
,What is the cost of coverage based on for group life insurance - Answers :The average
age and the ratio of men to women
For a contract to be enforceable by law, the purpose of the contract must be - Answers
:Legal and not against public policyholders
Which of the following would not be eligible for coverage under key person. - Answers
:owner of a shop, owner is the principal, not a key person
Guaranteeing future dividends is considered to be an unfair or deceptive act known as -
Answers :Misrepresentation (to make any false or misleading statements regarding the
dividends to be received on any insurance policy)
An insurance agent visit a potential client and explain various types of policies. The
customer displays a lack of interest so the agent guarantees higher dividends than he
knows would be possible which term describes what the agent has done. - Answers
:Misrepresentation
If a loan request is for payment of due premiums on the policy how soon must the
insurer issue a loan - Answers :Immediately
When the owner of a participating whole life policy uses the dividend to provide more
life insurance coverage which of the following dividend options is being used - Answers
:Paid up additions (used to purchase more paid up insurance each year thereby
increasing the death benefit)
According to the life insurance replacement regulations which of the following would be
an example of policy replacement - Answers :A policy is reissued with a reduction in
cash value (
Who is responsible for the content in form of insurance advertisements - Answers :The
whose policies are being advertised
If a life insurance company uses HIV testing as a part of underwriting when must an
applicant be notified of the procedure - Answers :Prior to performance of the test
Upon the surrender of a life insurance policy any cash value accumulated in excess of
premium payment is - Answers :Text as ordinary income
In life insurance underwriting all of the following are true regarding HIV test except -
Answers :Person may be denied coverage based solely on the presence of HIV
When a whole life policy is surrendered for it's nonforfeiture value what is the.automatic
options - Answers :Extended term
, What affect will The long-term care rider have on the death benefit of the life insurance
policy if LTC benefits were paid to the insured - Answers :Reduce death benefit
An annuitant pays the annuity premium on the 14th of each month which of the
following best describes the arrangement - Answers :Level
An agent tells and ensure that if he replaces his current insurance policy with a new one
his dividends will be higher and his premiums will be slightly lower the policy however
would not offer either one of those things what type of misrepresentation is being
committed - Answers :Twisting
The commissioner has determined that a producer is in eligible for appointment by an
insurer the commissioner must notify the insure within - Answers :Five days
Who is the annuity owner - Answers :The person who purchases the annuity
All of the following are true of annually renewable term insurance except...
A)The policy must be renewed no matter what happens to one's health
B) Proof of insurability must be provided at each renewal
C)The premium increase is each year
D) The death benefit remains level - Answers :Proof of insurability must be provided at
each renewal
All the following are true regarding the waiver of cost of insurance rider except
A) The rider cannot waive the cost of premiums that accumulate cash value
B) rider expires when the insured reaches 60
C ) The rider waves insurance costs in the event the insured becomes disabled
D) The rider is only applicable to universal life policies - Answers :The rider expires
when the insured reaches 16
How many days is the free look period - Answers :10 days
The automatic nonforfeiture option is - Answers :Extended term
All of the following statements about mutual insurance companies are correct except -
Answers :Policy dividends issued by me two companies are guaranteed and not taxable
Which of the following documents must be provided to the policy owner during policy
replacement?
What effect will the long term care rider have on the death benefit of a life insurance
policy If LTC benefits were paid to the insured - Answers :Reduce the death benefit
An insured and his spouse recently had a child which of the following riders would allow
the couple to insure the child for a limited period of time at a specific amount - Answers
:Children's term rider (Lost children to be added to coverage for a limited period of time
for a specific amount)
Which type Insurance policies provides pure life insurance protection without a savings
element - Answers :Term
A licensee fails to earn the required CE credits by the expiration of the 90-day grace
period and the license has been terminated for education how much time does the
licensee have to meet the CE requirements to be considered for license reinstatement?
- Answers :1 year
Which of the following best defines But unfair trade practices of rebating - Answers
:Offering an inducement or something of value not specified in the policy
All the following statements about mutual insurance companies are correct except.
A) policy dividends issued by mutual companies are guaranteed and not taxable
B) dividends allow policyholders to share a mutual companies divisible surplus
C) dividends are return of unused premiums
D) mutual companies issue policies referred to as participating. - Answers :A
How is a licensees date of continuing education credit review determined - Answers :by
the month and date of birth
What is the max civil fine a guilty party may pay for a single violation of the insurance
code - Answers :$5,000
What type of an interest rate is guaranteed in universal life policies. - Answers
:Adjustable interest rate
In contrasting stock insurers with mutual insurers which statement is true. - Answers
:Stock insurer are owned by the shareholders and issue nonparticipating policies
If an insured purchases an insurance policy with a large deductible what risk
management technique is the insured exercising - Answers :Retention
,What is the cost of coverage based on for group life insurance - Answers :The average
age and the ratio of men to women
For a contract to be enforceable by law, the purpose of the contract must be - Answers
:Legal and not against public policyholders
Which of the following would not be eligible for coverage under key person. - Answers
:owner of a shop, owner is the principal, not a key person
Guaranteeing future dividends is considered to be an unfair or deceptive act known as -
Answers :Misrepresentation (to make any false or misleading statements regarding the
dividends to be received on any insurance policy)
An insurance agent visit a potential client and explain various types of policies. The
customer displays a lack of interest so the agent guarantees higher dividends than he
knows would be possible which term describes what the agent has done. - Answers
:Misrepresentation
If a loan request is for payment of due premiums on the policy how soon must the
insurer issue a loan - Answers :Immediately
When the owner of a participating whole life policy uses the dividend to provide more
life insurance coverage which of the following dividend options is being used - Answers
:Paid up additions (used to purchase more paid up insurance each year thereby
increasing the death benefit)
According to the life insurance replacement regulations which of the following would be
an example of policy replacement - Answers :A policy is reissued with a reduction in
cash value (
Who is responsible for the content in form of insurance advertisements - Answers :The
whose policies are being advertised
If a life insurance company uses HIV testing as a part of underwriting when must an
applicant be notified of the procedure - Answers :Prior to performance of the test
Upon the surrender of a life insurance policy any cash value accumulated in excess of
premium payment is - Answers :Text as ordinary income
In life insurance underwriting all of the following are true regarding HIV test except -
Answers :Person may be denied coverage based solely on the presence of HIV
When a whole life policy is surrendered for it's nonforfeiture value what is the.automatic
options - Answers :Extended term
, What affect will The long-term care rider have on the death benefit of the life insurance
policy if LTC benefits were paid to the insured - Answers :Reduce death benefit
An annuitant pays the annuity premium on the 14th of each month which of the
following best describes the arrangement - Answers :Level
An agent tells and ensure that if he replaces his current insurance policy with a new one
his dividends will be higher and his premiums will be slightly lower the policy however
would not offer either one of those things what type of misrepresentation is being
committed - Answers :Twisting
The commissioner has determined that a producer is in eligible for appointment by an
insurer the commissioner must notify the insure within - Answers :Five days
Who is the annuity owner - Answers :The person who purchases the annuity
All of the following are true of annually renewable term insurance except...
A)The policy must be renewed no matter what happens to one's health
B) Proof of insurability must be provided at each renewal
C)The premium increase is each year
D) The death benefit remains level - Answers :Proof of insurability must be provided at
each renewal
All the following are true regarding the waiver of cost of insurance rider except
A) The rider cannot waive the cost of premiums that accumulate cash value
B) rider expires when the insured reaches 60
C ) The rider waves insurance costs in the event the insured becomes disabled
D) The rider is only applicable to universal life policies - Answers :The rider expires
when the insured reaches 16
How many days is the free look period - Answers :10 days
The automatic nonforfeiture option is - Answers :Extended term
All of the following statements about mutual insurance companies are correct except -
Answers :Policy dividends issued by me two companies are guaranteed and not taxable
Which of the following documents must be provided to the policy owner during policy
replacement?
