Arizona Life and Health Practice Exam

Under Federal law, what must John do to engage in insurance transactions given his felony conviction involving dishonesty?

1. Enroll in a rehabilitation program

2. Obtain a state license for insurance

3. Gain written consent from the state insurance regulatory agency

4. Complete a background check

The correct answer is: Gain written consent from the state insurance regulatory agency

To engage in insurance transactions after a felony conviction involving dishonesty, John is required to gain written consent from the state insurance regulatory agency. This requirement exists because insurance regulators are tasked with ensuring that individuals involved in the insurance industry meet certain ethical and legal standards. A felony conviction, particularly one related to dishonesty, raises significant concerns regarding trustworthiness and integrity. Gaining written consent from the regulatory agency allows for an assessment of John's circumstances, including the nature of the felony and evidence of rehabilitation or changes in behavior since the conviction. This process helps maintain consumer protection and the overall reliability of professionals operating in the insurance sector. While rehabilitation programs, state licensing, and background checks are also relevant components of the overall regulatory framework, they do not specifically address the requirement for written consent that directly acknowledges and evaluates John's eligibility to participate in insurance transactions post-conviction.