Under 18 U.S.C. Section 1033, a person convicted of a felony involving dishonesty or breach of trust:
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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 prohibits persons convicted of felonies involving dishonesty or breach of trust from engaging in the business of insurance affecting interstate commerce unless they obtain the written consent of the appropriate state insurance regulatory official. The statute protects consumers by keeping convicted fraudsters out of insurance operations. It does not impose an absolute permanent ban, because regulatory consent can be granted, and the test turns on the nature of the conviction and the regulator's review rather than simply the age of the offense or the worker's employment status.
Why the other options are wrong
- B) The ban is not absolute; a regulatory official may grant written consent allowing the person to participate in the insurance business.
- C) A 10-year-old conviction does not automatically qualify anyone; written regulatory consent is still required.
- D) Independent contractor status does not create an exemption; the statute reaches anyone engaging in the business of insurance.
Memory hook
18 USC 1033: a dishonest past needs a regulator's written 'yes' before insurance employment.