9.2d

Question 1

A ______ is often required by the insurer when a life insurance applicant is applying for a large amount of insurance. Inspection reports often have the same types of questions as in the special questionnaire, but more extensive. Also, an insurance company might hire an investigator to ______ to attain a general impression of an applicant’s integrity. Again, this type of ‘inspection’ is only employed to help evaluate clientele needing ______.

Answer 1

inspection report

interview family members, neighbors and/or associates

larger amounts of coverage than the industry average

Question 2

An insurance company has the right to review an applicant’s ______ in determining approval and offered rate of premium. Insurance companies want to know that company expenses spent on issuing a policy to the applicant will not be lost on a policyowner that ______. This report helps illustrate if the applicant could be a financial risk for the company.

Answer 2

credit report

cannot pay the policy’s premiums

Question 3

Enacted by Congress in 2001, the USA PATRIOT Act, more formally known as the ‘Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism’ Act, requires financial institutions, including life insurance companies, to establish anti-money laundering and suspicious activity reporting programs in an attempt to ______.

Answer 3

prevent criminal money laundering

Question 4

Commonly referred to as ‘The Patriot Act,’ this federal law provides for enhanced security and surveillance of both domestic and international financial activities linked to terrorism. It mandates a more in-depth monitoring of suspicious financial transactions and the disclosure of such activity to government anti-terrorism agencies that monitor the ______.

Answer 4

funding of terrorism

Question 5

As mandated by The Patriot Act, each financial institution must maintain ______ programs, provide company training for such programs, and comply with a self-assigned audit of company records using a non-company auditing agency.

Answer 5

anti-money laundering and suspicious activity reporting