State RegulationsNY specificDifficulty 2/5
An applicant for a New York producer position was previously convicted of a crime involving dishonesty. Under 18 U.S.C. §1033, before the applicant may engage in the business of insurance, the applicant must
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under 18 U.S.C. §1033, a person convicted of a crime involving dishonesty or a breach of trust may not participate in the business of insurance affecting interstate commerce without the written consent of the state insurance regulator — the consent commonly called the 1033 waiver. Disclosure on an application, or a principal's blessing, does not lift the federal bar; only the regulator's written consent does.
Why the other options are wrong
- B) Disclosure is expected, but it does not substitute for the written consent of the state insurance regulator that §1033 requires.
- C) Consent must come from the state insurance regulator, not merely from the hiring agency's principal broker.
- D) A pardon is not the statutory mechanism; §1033 provides for the regulator's written consent to engage in the business.
Memory hook
Dishonesty conviction means no insurance job without the regulator's written consent.