Violent Crime Control and Law Enforcement Act

The federal Violent Crime Control and Law Enforcement Act (the Act) requires Insurance Companies to verify the producers with whom they do business have not been convicted of a felony involving dishonesty or a breach of trust.   The Act prohibits an individual who has been convicted of any felony involving dishonesty or a breach of trust from willfully engaging in the business of insurance without the prior written consent of the Insurance Commissioner or Director with regulatory authority over such individual. An individual who violates this prohibition may be subject to substantial criminal and civil penalties, including fines and imprisonment. Likewise, the Act imposes the same or similar penalties against any entity, such as an Insurance Company, who willfully permits such an individual to participate in the business of insurance.