Idaho Insurance Study Tips with Complete Solutions(GRADED A+)

FRAUD AND FALSE STATEMENTS (18 USC Sections 1033 and 1034) - ANSWER-Under federal statutes it is a felony for any insurance company officer or employee to engage in fraud, embezzlement, theft, or deceit in any insurance transaction. In addition to a $50,000 civil fine, such a person may be subject to imprisonment for up to 15 years. USA PATRIOT ACT - ANTI - MONEY LAUNDERING - ANSWER-To make money laundering more difficult for criminals, the USA Patriot Act requires insurance companies to: • establish anti-money laundering programs; and • file "suspicious activity reports" within 180 days with the federal government's Financial Crimes Enforcement Network. When an investigative report is made on a consumer, the consumer must be notified in writing within 3 - ANSWER-