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 C is correct
Section 1033 of the federal criminal code prohibits persons convicted of felonies involving dishonesty or breach of trust from engaging in the business of insurance without the written consent of the state insurance regulator. This federal law reinforces state licensing protections by keeping dishonest individuals out of the insurance industry. Violations carry serious federal penalties, including imprisonment, and Section 1034 adds criminal penalties for providing false statements in insurance matters. The regulatory consent requirement gives states a gatekeeper role over such individuals.
Why the other options are wrong
- A) The bar applies unless state regulatory consent is obtained. Serving the sentence alone does not remove the restriction on the insurance business. The restriction continues after the sentence is served unless the state regulator affirmatively grants consent.
- B) The law restricts the insurance business specifically. It does not bar the person from all employment in the United States. The bar is limited to the business of insurance, not to all employment throughout the United States.
- D) Violations of Sections 1033 and 1034 can result in imprisonment. The penalties are not limited to civil fines. Violations carry potential prison time, so the consequences are far more serious than civil fines.
Memory hook
1033: a felon needs a state-level hall pass before touching the insurance business.