The OCC Has Determined That a National Bank May Not

question 306

Multiple Choice

The OCC has determined that a national bank may not assume that, simply because a consumer's PIN or ATM card was used in a transaction, that transaction is authorized. Banks are required to take reasonable steps to determine whether the transaction was authorized. Such steps might include the bank's review of:

• A) Documentation or written, signed statements provided by the consumer
• B) Historical information on the customer's pattern of use (such as time, location, types of transactions, and so on)
• C) Problems reported by regular customers regarding the access device or ATM
• D) Legal reports

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Definitions:

Loss Occurs

Refers to the moment when a financial loss happens due to an insured event.

Insurable Interest

A requirement that a person seeking to purchase insurance has a sufficient stake in the safety or preservation of the insured item or individual to obtain insurance coverage.

Named Beneficiary

An individual, group, or entity explicitly designated to receive benefits from a policy or account.

Partnership

A lawful business structure operated by two or more people who divide management duties and share the profits.