CAMS Exam Dumps | How can a 'free-look provision' as part of a life insurance policy help criminals to launder money?

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Question 182/374

How can a 'free-look provision' as part of a life insurance policy help criminals to launder money?

A. A policy owner can decide how to pay the premium within a pre-defined period.

B. A policy owner is able to terminate the contract without penalties such as surrender charges.

C. A policy owner has freedom to decide who the beneficiary of the policy will be and can in this way move money to a related third party.

D. A policy owner has freedom to decide who the beneficiary of the policy will be and can in this way move money to an unrelated third party.

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