CAMS Question #883: Real Exam Question with Answer & Explanation

The correct answer is A. Surrendering a policy early to liquidate funds D. Using cryptocurrencies or other non-fiat currencies to fund an insurance policy. Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance pro

Question

Which of the following risk factors are commonly associated with money laundering in insurance products? (Choose two.)

Options

ASurrendering a policy early to liquidate funds
BFocusing excessively on the investment performance of an insurance product
CUsing a credit card to purchase an insurance policy
DUsing cryptocurrencies or other non-fiat currencies to fund an insurance policy

Explanation

Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance products.

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