John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?

• A. Given written consent by the state insurance regulatory agency
• B. Pardoned by the President
• C. Never
• D. After completing a rehabilitation program

Answer: (A)

In federal rules, a felony involving dishonesty generally disqualifies someone from engaging in insurance transactions, but there is a path to eligibility: the state insurance regulator can issue written consent allowing the individual to act in insurance matters. This written consent serves as a waiver of the automatic disqualification, typically after the regulator reviews factors like the offense, time since conviction, and demonstrated rehabilitation. A presidential pardon does not automatically restore licensure rights, and completing a rehabilitation program alone isn’t enough without that regulator’s written consent. If there is no consent, the disqualification stands, so the best route is to obtain the state regulator’s written consent.