§ 1033. — Crimes by or affecting persons engaged in the business of insurance whose activities affect interstate commerce.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC1033]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 47--FRAUD AND FALSE STATEMENTS
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.
(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.
Section Referred to in Other Sections
This section is referred to in sections 1034, 1510, 3293 of this
title.
