State RegulationsAZ specificDifficulty 3/5
Which statement correctly distinguishes 18 USC 1033 from 18 USC 1034?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The two federal insurance-fraud statutes work in tandem: 18 USC 1033 prohibits individuals convicted of crimes involving dishonesty or breach of trust from engaging in the business of insurance without written regulatory consent, and 18 USC 1034 extends criminal liability to attempts and conspiracies to violate that scheme. Together they close both the re-entry loophole and the planning loophole in the federal insurance-fraud framework.
Why the other options are wrong
- B) both sections reach conduct in the insurance business generally; the split is not by licensee type.
- C) 1033 itself carries criminal penalties; the two sections are not split between civil and criminal regimes.
- D) the statutes apply to the business of insurance generally, not only to health lines.
Memory hook
1033 keeps them out; 1034 catches the try.