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Difficulty: EasyFraud and False Statements (18 U.S.C. 1033 and 1034)

Robert was previously convicted of a felony involving fraud. He recently completed his sentence and wants to start a career selling life insurance. Under 18 U.S.C. 1033, which of the following authorities must provide written consent before Robert can legally engage in the business of insurance?

  1. The state's Commissioner of Insurance or an equivalent insurance regulatory officialAnswer
  2. B
    The Federal Bureau of Investigation (FBI)
  3. C
    The National Association of Insurance Commissioners (NAIC)
  4. D
    The board of directors of the hiring insurance company

Answer

The state's Commissioner of Insurance or an equivalent insurance regulatory official
Under 18 U.S.C. Section 1033(e)(2), any individual who has been convicted of a criminal felony involving dishonesty or a breach of trust may only participate in the business of insurance if they have the written consent of an insurance regulatory official, commonly the state's Commissioner of Insurance.

Step-by-Step Solution

1
Identify the statutory requirement for individuals with specific felony convictions.
18 U.S.C. 1033 prohibits individuals convicted of felonies involving dishonesty or breach of trust from engaging in the insurance business without an exception.
This is the core restriction established by the federal statute to protect consumers.
2
Determine who holds the authority to grant the required exception (written consent).
The statute explicitly grants this authority to any insurance regulatory official authorized to regulate the insurer, which is typically the state Commissioner, Director, or Superintendent of Insurance.
This addresses the specific question of whose authorization is legally necessary.

Key Concept

18 U.S.C. 1033 Written Consent Requirement
Estimated Time:45s
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Topics

Fraud and False Statements (18 U.S.C. 1033 and 1034)

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