An individual with a past felony conviction involving a breach of trust wishes to begin a career selling life insurance. Under 18 U.S.C. 1033, this person is prohibited from engaging in the business of insurance without receiving a specific exemption. According to this federal statute, which official or entity is authorized to grant the required written consent?
- An appropriate state insurance regulatory official, such as the Commissioner or Director of Insurance.Answer
- BThe board of directors for the state's Guaranty Association, provided they determine the applicant will not endanger the insolvency fund.
- CThe primary state insurance regulator, but only after they legislate a new state law specifically permitting this individual's employment.
- DA federal compliance officer acting under the USA PATRIOT Act, following a mandatory suspicious activity background check.
Answer
An appropriate state insurance regulatory official, such as the Commissioner or Director of Insurance.
Under the federal fraud and false statements statute (18 U.S.C. 1033), any individual who has been convicted of a felony involving dishonesty or a breach of trust is barred from participating in the business of insurance. The only legal exception is if they first obtain the written consent of an appropriate state insurance regulatory official, such as the Commissioner of Insurance. This administrative waiver allows them to legally obtain a license and work in the industry.
Step-by-Step Solution
Key Concept
18 U.S.C. 1033 Written Consent Requirement