After serving a prison sentence for a felony conviction involving a breach of trust, an applicant seeks employment as a licensed producer at a regional insurance agency. Under the federal requirements of 18 U.S.C. 1033, what condition must be met before the agency can legally permit this individual to engage in the business of insurance?
- The applicant must obtain written consent specifically from the appropriate state insurance regulatory official, such as the Commissioner of Insurance.Answer
- BThe state Insurance Commissioner must pass a special statutory exemption overriding the federal restriction for this specific applicant.
- CThe applicant must secure a waiver of liability directly from the state's Life and Health Insurance Guaranty Association.
- DThe agency must place the applicant on a temporary license and restrict their activities to administrative tasks for a probationary period.
Answer
The applicant must obtain written consent specifically from the appropriate state insurance regulatory official, such as the Commissioner of Insurance.
Under 18 U.S.C. 1033, any individual convicted of a criminal felony involving dishonesty or a breach of trust is strictly prohibited from engaging in the business of insurance. The only exception to this federal ban is if the individual obtains prior written consent (often referred to as a 1033 waiver) from their state's chief insurance regulatory official (e.g., the Commissioner, Director, or Superintendent of Insurance). It is also a federal crime for an employer to willfully permit such an individual to work in the industry without verifying that this consent has been granted.
Step-by-Step Solution
Key Concept
18 U.S.C. 1033 Written Consent (Waiver) Requirement
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