General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
Under 18 U.S.C. Section 1033, a person convicted of a felony involving dishonesty or breach of trust may not work in the insurance industry unless:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
18 U.S.C. Section 1033 makes it a federal offense for a person convicted of a felony involving dishonesty or breach of trust to engage in interstate insurance business without the written consent of the appropriate state insurance regulator. Section 1034 provides criminal penalties for knowingly making false statements in such matters. State licensing and appointment processes routinely surface these convictions.
Why the other options are wrong
- B) No one-year waiting period is provided; the federal ban requires the regulator's written consent regardless of elapsed time.
- C) A surety bond filed by an employer is not the federal remedy; the insurance regulator's written consent is required.
- D) No federal compliance course lifts the ban; only written regulator consent authorizes participation.
Memory hook
Felony of dishonesty + insurance business = federal ban, unless the Commissioner signs a written consent.