What is meant by source of funds and source of wealth, and how should insurers verify them?

• A. Source of wealth equals origin of funds for a single transaction.
• B. Source of funds includes origin of the money in the transaction; source of wealth is overall wealth; verify with bank statements, tax returns, business records, and explanations.
• C. Only source of funds matters; source of wealth is irrelevant.
• D. Verification is optional for insurance transactions.

Answer: (B)