TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 47 - FRAUD AND FALSE STATEMENTS
HEAD
Sec. 1033. Crimes by or affecting persons engaged in the business
of insurance whose activities affect interstate commerce
STATUTE
(a)(1) Whoever is engaged in the business of insurance whose
activities affect interstate commerce and knowingly, with the
intent to deceive, makes any false material statement or report or
willfully and materially overvalues any land, property or security -
(A) in connection with any financial reports or documents
presented to any insurance regulatory official or agency or an
agent or examiner appointed by such official or agency to examine
the affairs of such person, and
(B) for the purpose of influencing the actions of such official
or agency or such an appointed agent or examiner,
shall be punished as provided in paragraph (2).
(2) The punishment for an offense under paragraph (1) is a fine
as established under this title or imprisonment for not more than
10 years, or both, except that the term of imprisonment shall be
not more than 15 years if the statement or report or overvaluing of
land, property, or security jeopardized the safety and soundness of
an insurer and was a significant cause of such insurer being placed
in conservation, rehabilitation, or liquidation by an appropriate
court.
(b)(1) Whoever -
(A) acting as, or being an officer, director, agent, or
employee of, any person engaged in the business of insurance
whose activities affect interstate commerce, or
(B) is engaged in the business of insurance whose activities
affect interstate commerce or is involved (other than as an
insured or beneficiary under a policy of insurance) in a
transaction relating to the conduct of affairs of such a
business,
willfully embezzles, abstracts, purloins, or misappropriates any of
the moneys, funds, premiums, credits, or other property of such
person so engaged shall be punished as provided in paragraph (2).
(2) The punishment for an offense under paragraph (1) is a fine
as provided under this title or imprisonment for not more than 10
years, or both, except that if such embezzlement, abstraction,
purloining, or misappropriation described in paragraph (1)
jeopardized the safety and soundness of an insurer and was a
significant cause of such insurer being placed in conservation,
rehabilitation, or liquidation by an appropriate court, such
imprisonment shall be not more than 15 years. If the amount or
value so embezzled, abstracted, purloined, or misappropriated does
not exceed $5,000, whoever violates paragraph (1) shall be fined as
provided in this title or imprisoned not more than one year, or
both.
(c)(1) Whoever is engaged in the business of insurance and whose
activities affect interstate commerce or is involved (other than as
an insured or beneficiary under a policy of insurance) in a
transaction relating to the conduct of affairs of such a business,
knowingly makes any false entry of material fact in any book,
report, or statement of such person engaged in the business of
insurance with intent to deceive any person, including any officer,
employee, or agent of such person engaged in the business of
insurance, any insurance regulatory official or agency, or any
agent or examiner appointed by such official or agency to examine
the affairs of such person, about the financial condition or
solvency of such business shall be punished as provided in
paragraph (2).
(2) The punishment for an offense under paragraph (1) is a fine
as provided under this title or imprisonment for not more than 10
years, or both, except that if the false entry in any book, report,
or statement of such person jeopardized the safety and soundness of
an insurer and was a significant cause of such insurer being placed
in conservation, rehabilitation, or liquidation by an appropriate
court, such imprisonment shall be not more than 15 years.
(d) Whoever, by threats or force or by any threatening letter or
communication, corruptly influences, obstructs, or impedes or
endeavors corruptly to influence, obstruct, or impede the due and
proper administration of the law under which any proceeding
involving the business of insurance whose activities affect
interstate commerce is pending before any insurance regulatory
official or agency or any agent or examiner appointed by such
official or agency to examine the affairs of a person engaged in
the business of insurance whose activities affect interstate
commerce, shall be fined as provided in this title or imprisoned
not more than 10 years, or both.
(e)(1)(A) Any individual who has been convicted of any criminal
felony involving dishonesty or a breach of trust, or who has been
convicted of an offense under this section, and who willfully
engages in the business of insurance whose activities affect
interstate commerce or participates in such business, shall be
fined as provided in this title or imprisoned not more than 5
years, or both.
(B) Any individual who is engaged in the business of insurance
whose activities affect interstate commerce and who willfully
permits the participation described in subparagraph (A) shall be
fined as provided in this title or imprisoned not more than 5
years, or both.
(2) A person described in paragraph (1)(A) may engage in the
business of insurance or participate in such business if such
person has the written consent of any insurance regulatory official
authorized to regulate the insurer, which consent specifically
refers to this subsection.
(f) As used in this section -
(1) the term "business of insurance" means -
(A) the writing of insurance, or
(B) the reinsuring of risks,
by an insurer, including all acts necessary or incidental to such
writing or reinsuring and the activities of persons who act as,
or are, officers, directors, agents, or employees of insurers or
who are other persons authorized to act on behalf of such
persons;
(2) the term "insurer" means any entity the business activity
of which is the writing of insurance or the reinsuring of risks,
and includes any person who acts as, or is, an officer, director,
agent, or employee of that business;
(3) the term "interstate commerce" means -
(A) commerce within the District of Columbia, or any
territory or possession of the United States;
(B) all commerce between any point in the State, territory,
possession, or the District of Columbia and any point outside
thereof;
(C) all commerce between points within the same State through
any place outside such State; or
(D) all other commerce over which the United States has
jurisdiction; and
(4) the term "State" includes any State, the District of
Columbia, the Commonwealth of Puerto Rico, the Northern Mariana
Islands, the Virgin Islands, American Samoa, and the Trust
Territory of the Pacific Islands.
SOURCE
(Added Pub. L. 103-322, title XXXII, Sec. 320603(a), Sept. 13,
1994, 108 Stat. 2115.)
TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS
For termination of Trust Territory of the Pacific Islands, see
note set out preceding section 1681 of Title 48, Territories and
Insular Possessions.
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