Question
An insurance company verifies a new insurance applicant's identity and learns the individual appears on the SDN list. What is the insurance company's next step?
1. Notify the FBI.
2. Ask the applicant for additional information.
3. Issue the insurance policy and then notify the state Department of Insurance.
4. Report the match to OFAC and receive further instructions.
1. Notify the FBI.
2. Ask the applicant for additional information.
3. Issue the insurance policy and then notify the state Department of Insurance.
4. Report the match to OFAC and receive further instructions.
Answers
GPT-4o mini
The correct next step for the insurance company is:
4. Report the match to OFAC and receive further instructions.
When an applicant is found to be on the Specially Designated Nationals (SDN) list, it is important for the company to report this to the Office of Foreign Assets Control (OFAC) rather than proceeding with the application or issuing a policy. This ensures compliance with regulations and helps the company understand its obligations regarding the applicant.
4. Report the match to OFAC and receive further instructions.
When an applicant is found to be on the Specially Designated Nationals (SDN) list, it is important for the company to report this to the Office of Foreign Assets Control (OFAC) rather than proceeding with the application or issuing a policy. This ensures compliance with regulations and helps the company understand its obligations regarding the applicant.