Fraud and False Statements

It is a violation of federal law for someone engaged in the business of insurance—whose activities affect interstate commerce and knowingly with the intent to deceive—to make any false material statement or report. Violations of this law are punishable by imprisonment, fines, or both.

Federal law prevents individuals from selling insurance if they were convicted of a crime involving dishonesty. These individuals are allowed to sell insurance only if they have obtained written consent from the Utah Insurance Department. This written consent is known as a 1033 waiver.