Question

How does the insurance business compare to other participants in the financial sector in terms of vulnerability to money laundering?

a.

It is more vulnerable

b.

It is less vulnerable

c.

It is equally vulnerable

d.

It is immune to money laundering

Posted under IC 14 Regulations of Insurance Business

Answer: (b).It is less vulnerable Explanation:The insurance business is relatively less vulnerable to money laundering compared to other participants in the financial sector, such as banks. While it is not completely immune, certain enabling features of insurance contracts can be misused by money launderers, making it important for insurance companies to implement robust anti-money laundering (AML) measures.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the insurance business compare to other participants in the financial sector in terms of vulnerability to money laundering?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are some enabling features of insurance contracts that can be misused for money laundering purposes?

View solution

Q. What responsibility do insurance companies have regarding anti-money laundering (AML) programs according to IRDA guidelines?

View solution

Q. What is the role of the senior level officer appointed by insurance companies in implementing AML programs?

View solution

Q. Why are restrictions placed on acceptance of cash beyond Rs. 50,000 in premium or proposal deposit remittances in the insurance sector?

View solution

Q. What is the purpose of setting up Financial Intelligence Units (FIUs) in various jurisdictions?

View solution

Q. What is the obligation of financial institutions regarding reporting to the Financial Intelligence Unit in India (FIU-IND)?

View solution

Q. How long are records of transactions reported to the FIU required to be retained by insurance companies?

View solution

Q. What are the record-keeping requirements for customer identification data according to AML guidelines?

View solution

Q. Why is it important for insurance companies to have adequate screening procedures when hiring employees and agents?

View solution

Q. What is the role of employees and agents in effective compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) programs?

View solution

Q. Why is it important for employees and agents to be properly trained on AML/CFT?

View solution

Q. How are premiums typically collected by insurance companies in India?

View solution

Q. What is premium in the context of insurance?

View solution

Q. When is the premium typically paid by the insured?

View solution

Q. What factors generally influence the insurance premium?

View solution

Q. According to IRDA regulations, what are the approved methods for premium payment?

View solution

Q. According to Section 64 VB of the Insurance Act, when does the risk on the part of the insurer begin?

View solution

Q. What happens if the premium is not realized by the insurer for a general insurance policy?

View solution

Q. How is the treatment of non-realization of premium different for life insurance policies compared to general insurance policies?

View solution

Q. What does Section 64 VB of the Insurance Act specify regarding assumption of risk by insurers?

View solution
View All MCQs on IC 14 Regulations of Insurance Business

Recommended Subjects

Are you eager to expand your knowledge beyond IC 14 Regulations of Insurance Business? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

International Relations

Navigate the complex world of International Relations with our dedicated category....

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...