Tennessee Life Producer Practice Exam

Under the USA Patriot Act, insurers are required to report cash payments over what amount?

1. $5,000

2. $10,000

3. $15,000

4. $20,000

The correct answer is: $10,000

The USA Patriot Act requires insurers and other financial institutions to report cash transactions that exceed $10,000. This mandate is part of the legislation aimed at combating money laundering and terrorist financing. By putting this reporting threshold in place, the Act seeks to ensure that significant cash transactions are monitored to help prevent illegal activities. Insurers must stay vigilant in their operations and maintain proper compliance with this reporting requirement. It serves as a tool for regulatory authorities to track and investigate larger cash transactions that might raise suspicion. Transactions below this threshold, while still possibly monitored internally by insurers, do not carry the same reporting obligation as those above $10,000. This regulatory framework allows for better oversight and protection against potential financial crimes.