State RegulationsAZ specificDifficulty 2/5
A producer was convicted of a felony involving insurance fraud and now wants to sell life insurance again in Arizona. Under 18 USC 1033, what must happen before any insurer may employ or appoint the producer?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under 18 USC 1033, a person convicted of a felony involving dishonesty, breach of trust, or fraudulent insurance acts is prohibited from the business of insurance unless the appropriate insurance regulatory authority — in Arizona, the insurance department — issues written consent. Without that written waiver, employment or appointment by an insurer is a federal violation.
Why the other options are wrong
- B) A prelicensing course addresses exam eligibility, not the federal prohibited-persons bar.
- C) A reference letter has no statutory effect on the federal prohibition.
- D) Disclosure at renewal does not satisfy 18 USC 1033; written regulatory consent must come first.
Memory hook
Fraud felony = no insurance work until the regulator's written consent arrives.