Written Consent to Engage in the Business of Insurance
One purpose of the federal Violent Crime Control and Law Enforcement Act of 1994, 18 United States Code § 1033 and 1034 is to protect the insurance industry, both insurers and consumers, from fraud and abuse by prohibiting certain persons from engaging or participating in the business of insurance. Pursuant to Section 1033 (e)(1)(A), “prohibited persons” include those convicted of a state or federal felony involving dishonesty, breach of trust, or a crime under Section 1033 of the Act. Pursuant to Section 1033 (e)(1)(B), persons engaged in the business of insurance are barred from willfully permitting the participation of a prohibited person. A prohibited person may apply to the Nevada Commissioner of Insurance or other appropriate insurance regulatory official for written consent to participate in the business of insurance under certain guidelines.
We encourage you to read 18 U.S.C. Sections 1033 and 1034 to evaluate your compliance. We further encourage you to review your employee records to determine whether your employees, consultants, agents, managing general agents, third party administrators, or others in your company may include “prohibited persons” barred from participating in the business of insurance by the federal law.
Any “prohibited person” who intends to engage in the business of insurance must first submit an application to the Commissioner to determine if the applicant should be given written consent to engage in the business of insurance or participate in the business of insurance pursuant to 18 U.S.C. § 1033(e)(2). In order to apply for Written Consent the candidate should review the Short and Standard Written Consent Applications. The Short form may be used to request an initial expedited determination. Upon review of the Short Form Application the Commissioner may require the more detailed Standard Form Application for Written Consent to Engage in the Business of Insurance. Please utilize the appropriate Check List below to verify that all of the required documentation is provided to Division for its consideration.
- Short Form Application
- Short Form Check List
- Standard Form Application
- Standard Form Check List
- Probationary Insurance License Report
If you or any of your associates may be prohibited, you may contact the Nevada Division of Insurance, Producer Licensing Section, for clarification or further instructions.
For additional information, you may also review Bulletin 01-009, May 25 2001.