FULL TEXT
INSURANCE FRAUD PROTECTION ACT
18 United States Code
Sections 1033 and 1034
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Sec. 1033. Crimes by or affecting persons engaged in the business of insurance whose
activities affect interstate commerce.
- (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.
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