If potential underwriting fraud signals are observed, to whom should the field underwriter escalate the issue?

• A. Underwriting leadership or compliance.
• B. The applicant.
• C. Legal counsel immediately.
• D. Auditors after policy issue.

Answer: (A)

When potential underwriting fraud signals appear, the field underwriter should escalate the issue to the appropriate senior underwriting leadership and the compliance function. This ensures a formal, confidential review, proper documentation, and alignment with policy and regulatory requirements. It allows specialized staff to assess the signals, gather needed information, and determine next steps, including whether to involve legal or investigators, without tipping off the applicant. Directly notifying the applicant or handling it only after policy issue would undermine controls and delay a proper investigation.