Ken would likely be required to file a Form SAR-IC for case d. A customer requests a $5,000 withdrawal from a universal life insurance policy that she purchased three months ago and for which a $2,000 unscheduled premium payment was made one week earlier.
Why would Ken file this?
When a customer requests a $5,000 withdrawal from a recently purchased universal life insurance policy, along with an unscheduled $2,000 premium payment shortly before the withdrawal, it presents an unusual and potentially suspicious pattern of activity.
This sudden large premium payment followed by an immediate substantial withdrawal raises red flags for potential money laundering or illicit financial activity.
Question
Ken, an employee in an insurance company's compliance department, is responsible for monitoring covered product transactions for possible suspicious activity. For which one of the following cases would he be required to file a Form SAR-IC? O a. An application for a universal life insurance policy includes a $1,000 cashier's check, but nothing appears unusual about the applicant. ob. A customer requests a $5,000 policy loan from the participating whole life policy she has owned for 17 years. oc, An application for an indexed universal life insurance policy includes a request for the 1035 exchange of an existing variable life policy with a $20,000 cash value because the customer is unhappy with variable contracts in general. od. A customer requests a $5,000 withdrawal from a universal life insurance policy that she purchased three months ago and for which a $2,000 unscheduled premium payment was made one week earlier.