Question

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

a.

To increase paperwork

b.

To discourage genuine employees

c.

To prevent misuse of the insurance sector by money launderers

d.

To limit the number of employees and agents

Answer: (c).To prevent misuse of the insurance sector by money launderers Explanation:It is important for insurance companies to have adequate screening procedures when hiring employees and agents to prevent misuse of the insurance sector by money launderers. Proper screening helps ensure that individuals with questionable backgrounds or intentions are not able to infiltrate the system and exploit it for illicit activities.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

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

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

Q. What is premium in the context of insurance?

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

Q. What factors generally influence the insurance premium?

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

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

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

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

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

Q. What provision does Section 64 VB (2) of the Insurance Act make regarding the assumption of risk by insurers when dealing with non-realizable premiums?

Q. How do IRDA regulations address the issue of non-realized premiums for general insurance policies?

Q. How does the Motor Vehicles Act affect insurers' obligations regarding non-realized premiums?

Q. In what circumstances is the full premium required to be paid before the commencement of risk for a specific policy?

Q. In which cases are there relaxations to the provisions of Section 64VB of the Insurance Act?

Q. What is the purpose of the Memorandum of Exchange Control Regulations relating to General Insurance in India?

Q. What document should insurers insist on when issuing policies expressed in foreign currency against premium payable in foreign currency?

Q. What is the requirement for persons, firms, and companies resident in India regarding taking insurance cover with insurance companies in foreign countries?

Q. How are payments of claims to individuals in Nepal and Bhutan against marine or non-marine policies typically handled?

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!