Pmc exam overview Questions With Complete Solutions
A 60-year-old participant in a 401(k) plan takes a distribution
and rules it over to an IRA within 60 days. Which of the
following is true?
A) no taxes are due since the plan participant is over age 59 1/2
B) there is a 10% early withdrawal penalty
C) The amount distributed is subject to ordinary income tax
D) The amount of the distribution is reduced by the amount of
20% withholding tax Correct Answers D) The amount of the
distribution is reduced by the amount of 20% withholding tax.
(Since this client actually took a distribution instead of making a
trustee to trustee roll over the distribution is subject to 20%
withholding tax)
A 60-year-old participant in a 401K plan take the distribution
and rolled it over to and I already within 60 days what is true?
A) no taxes are due since the plan participant is over 59 1/2
B) there is a 10% early withdrawal penalty
C) The amount distributed is subject to ordinary income tax
D) The amount of the distribution is reduced by the amount of
the 20% withholding tax Correct Answers D) The amount of
,the distribution is reduced by the amount of the 20%
withholding tax
A form of an individual retirement account funded with after-tax
contributions. Roth Ira raise grow tax-free as long as the account
is open for at least five years Correct Answers Roth IRA
A licensee Fails to earn the required CE credits by the expiration
of the 90 day grace. The license has been terminated for
education how much time does the licensee have to meet the CE
requirement to be considered for license reinstatement Correct
Answers 1 year
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?
Correct Answers 1 year
A married couple purchases a life insurance policy on their
newborn baby. They are concerned about what would happen to
the policy of they were unable to make premium payments due
to death or disability which rider should you recommend?
Correct Answers Payor benefit
(It provides protection to insured minors. if the life Insurance is
for a child and the parent paying premium dies or becomes
disabled the insurance company will waive the premium until
the child reaches a predetermined age such as 18 or 21)
, According to the entire contract revision a policy must contain
Correct Answers A copy of the original application for
insurance
According to the life insurance replace me regulations which of
the following would be an example of policy replacement
Correct Answers A policy is re-issued with a reduction in Cash
Value
According to the life insurance replacement regulations which of
the following would be an example of policy replacement
Correct Answers A policy is reissued with a reduction in cash
value (
Agent authority "perceived authority" is? Correct Answers
Apparent
Agents who persuade insureds to cancel a policy in favor of
another when it might not be in the insureds best interest are
guilty of_____? Correct Answers Twisting
All of the following are requirements for life insurance
illustrations except
A) they must be part of the contract
B) they must differentiate between guaranteed and projected
amounts
C) they may only be used as approved
A 60-year-old participant in a 401(k) plan takes a distribution
and rules it over to an IRA within 60 days. Which of the
following is true?
A) no taxes are due since the plan participant is over age 59 1/2
B) there is a 10% early withdrawal penalty
C) The amount distributed is subject to ordinary income tax
D) The amount of the distribution is reduced by the amount of
20% withholding tax Correct Answers D) The amount of the
distribution is reduced by the amount of 20% withholding tax.
(Since this client actually took a distribution instead of making a
trustee to trustee roll over the distribution is subject to 20%
withholding tax)
A 60-year-old participant in a 401K plan take the distribution
and rolled it over to and I already within 60 days what is true?
A) no taxes are due since the plan participant is over 59 1/2
B) there is a 10% early withdrawal penalty
C) The amount distributed is subject to ordinary income tax
D) The amount of the distribution is reduced by the amount of
the 20% withholding tax Correct Answers D) The amount of
,the distribution is reduced by the amount of the 20%
withholding tax
A form of an individual retirement account funded with after-tax
contributions. Roth Ira raise grow tax-free as long as the account
is open for at least five years Correct Answers Roth IRA
A licensee Fails to earn the required CE credits by the expiration
of the 90 day grace. The license has been terminated for
education how much time does the licensee have to meet the CE
requirement to be considered for license reinstatement Correct
Answers 1 year
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?
Correct Answers 1 year
A married couple purchases a life insurance policy on their
newborn baby. They are concerned about what would happen to
the policy of they were unable to make premium payments due
to death or disability which rider should you recommend?
Correct Answers Payor benefit
(It provides protection to insured minors. if the life Insurance is
for a child and the parent paying premium dies or becomes
disabled the insurance company will waive the premium until
the child reaches a predetermined age such as 18 or 21)
, According to the entire contract revision a policy must contain
Correct Answers A copy of the original application for
insurance
According to the life insurance replace me regulations which of
the following would be an example of policy replacement
Correct Answers A policy is re-issued with a reduction in Cash
Value
According to the life insurance replacement regulations which of
the following would be an example of policy replacement
Correct Answers A policy is reissued with a reduction in cash
value (
Agent authority "perceived authority" is? Correct Answers
Apparent
Agents who persuade insureds to cancel a policy in favor of
another when it might not be in the insureds best interest are
guilty of_____? Correct Answers Twisting
All of the following are requirements for life insurance
illustrations except
A) they must be part of the contract
B) they must differentiate between guaranteed and projected
amounts
C) they may only be used as approved
