The Texas Department of Insurance reminds all persons entering into or conducting the business of insurance in the State of Texas that under the provisions of the Federal Violent Crime Control and Law Enforcement Act of 1994, codified as 18 U.S.C. §1033 et seq., ("the Act"), it is a criminal offense for a person who has been convicted of a state or federal felony crime involving dishonesty or a breach of trust ("prohibited person") to engage in the business of insurance or to participate in such insurance business (except as expressly permitted by the Act) unless the person first obtains the written consent of an appropriate insurance regulatory official. Further, under the Act, it is a criminal offense for anyone engaged in the business of insurance to willfully permit a prohibited person to engage in or participate in the business of insurance unless the prohibited person has first obtained such written consent.
Generally, crimes involving dishonesty or a breach of trust include some element of fraud, deceit, untruthfulness, or falsification. Prohibited persons must refrain from conducting any insurance activities until such time as the prohibited person has obtained the written consent required by the federal law. The burden to apply for written consent is on the prohibited person, in cooperation with the insurer, agency, or any other entity for whom the insurance activities would be performed.
The Commissioner has jurisdiction under the Act to consider requests for written consent filed by prohibited persons who propose to participate in the business of insurance in Texas with a domestic insurer or a resident licensee. If they have not already done so, such prohibited persons who are affected by the Act may petition the Commissioner to grant a written consent ("Letter of Consent").
Issuance of the Letter of Consent involves a review of the prohibited person's character, activities and fitness by the Department. Eligibility for a Letter of Consent is based upon the totality of the circumstances involved and will be determined by the Commissioner on a case-by-case basis. The issuance of a Letter of Consent is discretionary and the Commissioner may elect to defer issuance of a Letter of Consent to an applicant whose residence or primary place of business is not within the State of Texas and refer the request to the applicant's state of residence or primary place of business.
For additional information, please contact Matt Ray, Deputy Commissioner, Texas Department of Insurance, Licensing Division at 512-322-3503 or fax 512-475-1819.
Mike Geeslin
Commissioner of Insurance