Property & Casualty Insurance Exam (National Portion)Producers and AdjustersMedium
A property and casualty producer is convicted of a felony involving dishonesty and a breach of trust. To continue working in the insurance industry, this individual must obtain a specific consent waiver. From which entity must this waiver be obtained, as per federal law?
- AThe National Association of Insurance Commissioners (NAIC).
- BThe state Department of Insurance.
- CThe convicted individual's former employer.
- DThe U.S. Attorney General or other authorized federal official.
Show answer & explanationAnswer & explanation
Correct answer: D. The U.S. Attorney General or other authorized federal official.
Under 18 U.S.C. § 1033, any individual convicted of a felony involving dishonesty or breach of trust must obtain written consent from the U.S. Attorney General or an authorized federal official to engage in the business of insurance.
Why the other options are wrong
- A. The NAIC provides model laws, but does not issue federal waivers.
- B. The state DOI handles state licensing but cannot grant federal waivers for 1033 convictions.
- C. An employer has no authority to grant such a federal waiver.
18 U.S.C. § 1033 Consent (Waiver)
18 U.S.C. § 1033 requires individuals convicted of felonies involving dishonesty or breach of trust to obtain written consent from the U.S. Attorney General or an authorized federal official to work in insurance.
- Federal law (Violent Crime Control and Law Enforcement Act).
- Applies to felonies involving dishonesty/breach of trust.
- Consent from U.S. Attorney General or authorized federal official.
- Failure to obtain consent is a federal crime.
Memory trick: 1033: Dishonesty's dark cloud needs a federal sunbeam to shine again.