Completing the Application, Underwriting, Delivering Policies, Contract Law
A suspicious transaction involving a covered insurance product is identified from facts supplied by an agent. Who bears the direct federal obligation to report the suspicious transaction?
Answer and explanation
Answer: C. FinCEN places the direct suspicious-activity reporting obligation on the insurance company, not separately on its agents or brokers. The company must have procedures to obtain relevant information from agents and use it to detect and report suspicious activity.Source: Financial Crimes Enforcement Network — Insurance Company AML and SAR FAQs — FAQ: Are insurance brokers and agents required to file suspicious activity reports?
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