State RegulationsAZ specificDifficulty 2/5
A producer in Tucson was convicted of a federal insurance fraud crime and now wants to return to selling insurance. Before working in the business of insurance again, the producer must obtain:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the federal prohibited-persons statute, 18 USC 1033, a person convicted of a crime involving dishonesty or breach of trust may not work in the business of insurance without the written consent of an appropriate regulatory authority. Employment decisions or licensing in another jurisdiction do not cure the bar; only the written regulatory consent does, and working without it compounds the producer's criminal exposure.
Why the other options are wrong
- A) private employer support has no effect on the federal prohibition.
- B) the bar attaches to insurance activity generally, so licensing elsewhere does not lift it.
- C) a fidelity bond is not the statutory cure; written regulatory consent is.
Memory hook
Back in the business? Written consent first.