Colorado Life Producer License Practice Test

What additional requirement is there for the anti-fraud plan regarding investigators?

1. They must be employees only

2. They must be licensed agents

3. Hiring or contracting for one or more fraud investigators

4. Training them on customer service

The correct answer is: Hiring or contracting for one or more fraud investigators

The additional requirement for the anti-fraud plan regarding investigators is the need to hire or contract for one or more fraud investigators. This is crucial because having dedicated personnel who are specially trained and experienced in identifying and investigating potential fraud is essential for implementing an effective anti-fraud strategy. These investigators are responsible for detecting fraudulent activity and ensuring that the company's operations comply with laws and regulations designed to prevent fraud. Having external or specialized fraud investigators allows a company to leverage expertise that might not exist within its existing workforce. This approach enhances the thoroughness and effectiveness of the fraud detection and prevention efforts. While there are other considerations regarding the qualifications and roles of personnel within the anti-fraud framework, such as being employees or having certain training, the requirement to specifically hire or contract experienced fraud investigators underscores the importance of expertise in handling complex fraud-related issues.