Overview of Title 18 U.S. Code, 1033
The federal “Violent Crime Control and Law Enforcement Act of 1994,” Title 18 U.S. Code, §§1033 and 1034 (“the Act”) became effective September 13, 1994. The Act provides for criminal and civil enforcement provisions aimed at white-collar crime and insurance fraud. The Act also provides penalties for a person who has been convicted of certain criminal acts, as discussed below, and who willfully engages in the business of insurance affecting interstate commerce, unless such person receives written consent from the state insurance regulatory official with appropriate jurisdiction.
The Act has broad, far-reaching implications for a person involved in the business of insurance or reinsurance in the United States. Insurers, officers, directors’ Members and any employee of an insurance company engaged in the business of insurance could be subject to the requirements of the Act. Moreover, insurance companies, as well as persons employing individuals to conduct the business of insurance, may be in violation of the Act if they willfully permit participation by a prohibited person, including persons who are currently employed or being considered for employment. In addition, the failure to initiate a screening process to identify a prohibited person in current or prospective employment relationships may be a factor in determining if a violation of the Act has occurred.
Persons Required to Obtain Written Consents to Engage in the Business of Insurance
More particularly, the Act, in pertinent part, prohibits any person convicted of any criminal felony involving dishonesty, breach of trust or a violation of the Act from engaging in the business of insurance without the specific written consent of the state insurance regulatory official with appropriate jurisdiction. A prohibited person who fails to comply faces possible federal criminal and civil enforcement of the Act, as well as state administrative action.
The Act contains no grandfather provision for a prohibited person already engaging in the business of insurance. Further, the Act contains no automatic waiver for a prohibited person who may possess a state insurance license.
1033 Waiver Consent by State
Each state division of insurance (DEPARTMENT OF INSURANCE) has made their individual decisions on how to apply for a 1033 waiver consent. Depending upon the state, there may be detailed waiver procedures or no reference at all.
- Click Here for the link to the NAIC listing of state insurance department web sites.
- Click Here for a standard waiver form. (Not used by every state)
To determine your individual status, you can link to the applicable site or call your state DEPARTMENT OF INSURANCE.