A person knowingly submits a materially false statement to a federal agency in connection with a matter affecting an insurance company's compliance. Under 18 USC Section 1033, such conduct:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
18 USC Section 1033 makes it a federal crime for a person engaged in the business of insurance to knowingly make a false material statement or report, or to willfully and materially overvalue assets, in connection with financial reports presented to a regulatory official, agency, or examiner for the purpose of influencing that official. Section 1033(e) also bars persons convicted of felonies involving dishonesty or breach of trust from engaging in the insurance business without written consent from the regulatory official, and Section 1034 adds civil penalties and injunctions for violations of Section 1033; together these statutes create federal penalties that supplement state licensing enforcement.
Why the other options are wrong
- B) Federal law applies alongside state regulation; knowingly false statements in insurance matters are federal offenses.
- C) The offense is complete when the false statement is knowingly made, regardless of whether it was subsequently used.
- D) Section 1033 imposes fines and imprisonment, so criminal liability clearly exists.
Memory hook
Lie to the feds about insurance and it is a federal crime. Section 1033 punishes false statements on the job.