Completing the Application, Underwriting, Delivering Policies, Contract Law
An applicant attempts to purchase a single-premium $500,000 life policy using multiple cashier's checks under $10,000 from different banks. What action is the insurer required to take under AML rules?
Answer and explanation
Answer: B. FinCEN requires insurers to file a SAR for structured transactions ($5,000+) designed to evade CTR limits, and prohibits informing the customer.Source: FinCEN AML Regulations — SAR Confidentiality and Structuring
More completing the application, underwriting, delivering policies, contract law questions
- A client applies for life coverage without a temporary receipt. The insurer approves and issues the policy as applied for. Under standard application provisions, when does company liability actually begin?
- A consumer report plays a small part in an insurer's decision to charge a higher life premium. What does the FCRA require?
- A corporation is applying to own a life insurance policy. Which signature best evidences a competent party acting on behalf of the corporation?
- A delivered policy has a higher premium because underwriting classified the insured for a risky occupation. Which explanation is appropriate?
- A health provider receives a valid HIPAA authorization directing disclosure of specified records to a life insurer for underwriting. How does HIPAA's minimum-necessary standard apply to that authorized disclosure?
- A legal-age Texas applicant buys insurance on her own life and names a charitable corporation as beneficiary in writing on the application. Which statement is accurate?
590 Texas questions like this one.
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