In the world of insurance, there’s a rule that can make it tough for people with certain felony convictions to work in the industry. Known as the 1033 rule, it comes from a federal law that says anyone convicted of a felony involving dishonesty or a breach of trust must get special permission—a “1033 waiver”—to work in insurance.
This rule stems from the Violent Crime Control and Law Enforcement Act of 1994, signed by President Bill Clinton. Though much of that law focused on violent crime, it also aimed at white-collar crimes like insurance fraud. Basically, if someone commits a crime connected to insurance across state lines, they are banned from insurance roles unless they get a federal exemption.
Here’s how it works: if you want to return to or start a career in insurance after a felony that involves dishonesty, you must apply for a 1033 waiver from state insurance regulators. Without it, you can’t legally work in insurance-related roles. The process requires a lot of paperwork, including background checks, detailed explanations of the conviction, financial information, employment history, and character references. The state insurance commissioner then decides if you are fit to return, considering your rehabilitation and if letting you back in is good for the public.
This waiver doesn’t override state laws, which means even if you get federal permission, you still need to follow your state’s specific rules. Some states, like Florida, don’t allow 1033 waivers at all, meaning people with disqualifying felonies can’t work in insurance there. Other states, like Virginia and Louisiana, have simplified the process by automatically reviewing certain licenses as if the applicant is seeking a waiver.
The National Association of Insurance Commissioners (NAIC) offers guidance on who should apply to which state, since jurisdiction can get tricky for people working in multiple states or at larger insurance companies. If your waiver is denied in one state, it’s not easy to get it approved elsewhere without the original state’s approval.
For anyone with a felony history thinking about an insurance career, the 1033 waiver is a chance to make things right, but it’s a long and challenging road. It’s always better to avoid having to deal with this rule by staying on the right side of the law from the start.