State RegulationsNY specificDifficulty 3/5
Which conduct is a federal criminal offense under 18 U.S.C. §1033 for a person engaged in the business of insurance whose activities affect interstate commerce?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under 18 U.S.C. §1033, it is a federal crime for a person engaged in the business of insurance whose activities affect interstate commerce to embezzle, misappropriate, or otherwise fraudulently obtain money or funds, or to make false or misleading statements with intent to defraud, and 18 U.S.C. §1034 supplies the criminal penalties. Administrative state matters — rate filings, continuing education, appointment reporting under N.Y. Ins. Law §2112 — belong to the Superintendent, not the federal criminal statutes.
Why the other options are wrong
- A) Rate deviations are a state regulatory matter supervised by the Superintendent, not a federal criminal offense under §1033.
- B) Continuing education shortfalls are state licensing issues handled administratively by DFS, not federal insurance crimes.
- D) Appointment terminations are governed by New York's §2112 reporting rules, not by the federal fraud statutes.
Memory hook
§1033/§1034 hit federal crimes — stealing or lying to defraud; paperwork lapses stay with the state.