Can You Get an Insurance License With a Felony?

Yes, you can get an insurance license with a felony on your record in most cases, but the path depends on what you were convicted of. Federal law bars anyone convicted of a felony involving dishonesty or breach of trust from working in insurance without a written waiver, and your state’s Department of Insurance runs its own review on top of that. Clear both layers and the license is possible. Skip either one and you face denial, or worse, federal prosecution.

Does Your Felony Trigger the Federal Bar

The first question is whether 18 U.S.C. § 1033(e) applies to you. This statute makes it a federal crime to participate in the business of insurance after a felony conviction involving “dishonesty or a breach of trust” unless you first obtain written consent from a state insurance regulator. Violating it carries fines and up to five years in federal prison, and your employer faces the same penalty for knowingly letting you work without the waiver.¹

The statute reaches broadly. It covers agents, brokers, adjusters, officers, directors, and employees of insurance companies. If your job touches insurance in a meaningful way, the law applies.

There is no fixed list of qualifying crimes. The statute targets any felony whose core involves deceit or betrayal of trust. Fraud, embezzlement, forgery, perjury, money laundering, identity theft, and bribery are classic examples. Tax evasion and writing bad checks would likely qualify too because both involve deliberate dishonesty.

Felonies that do not involve dishonesty or breach of trust, such as assault, drug possession, or DUI, do not trigger § 1033. You do not need a federal waiver for those. They will still appear on your background check, and your state can still deny your license based on them, so a non-dishonesty felony is not a free pass.

How to Apply for a 1033 Waiver

If your felony involved dishonesty or breach of trust, you need written consent under § 1033(e)(2) before you can legally work in insurance.¹ The waiver is not a pardon. It is a specific grant of permission from your state’s insurance commissioner that lets you work in the industry despite the conviction.

You submit the application to the insurance commissioner of your resident state. Expect to provide:

A personal statement explaining the circumstances of the conviction
Certified court records, including the charging documents, judgment, and sentencing order, obtained from the courthouse where your case was decided
Proof you completed your sentence, including probation, fines, and restitution
Character references from people who know about the conviction, such as employers, probation officers, or community leaders
An affidavit from a sponsoring employer describing your prospective duties, in states that require one
Fingerprints for the background check

The commissioner weighs the severity of the crime, how much time has passed, whether you received a pardon or expungement, your personal and business record before and after, and whether you have been truthful throughout the application.² A false statement anywhere in the application can sink the waiver and every future attempt at licensure.

Costs

Filing fees for the waiver application vary by state and generally run a few hundred dollars. Fingerprinting and background checks typically cost between $38 and $75. Certified court records carry their own fees. All of this is on top of the standard licensing application fee and any pre-licensing education you would have paid for anyway.

If Your Waiver Is Denied

A denial is not the end. Most states let you request an administrative hearing to challenge it, typically within 60 days of the denial order. You can present additional evidence of rehabilitation at the hearing. If your circumstances change later, such as more time passing or obtaining an expungement, you can reapply with a stronger case.

State Review and Waiting Periods

Even applicants who clear § 1033, and those whose felony never triggered it, still face review by the state Department of Insurance. State regulators run their own background check and evaluate your overall fitness.

They look at several factors case by case:

Whether the crime relates to the financial trust insurance work requires
How many years have passed since the conviction and since you completed every sentencing requirement
Evidence of rehabilitation, including steady employment, community involvement, counseling, and letters of recommendation
Whether you have stayed out of trouble since

Many states impose mandatory waiting periods before they will even consider an application. These generally start after you complete your sentence, not from the date of conviction. Some states require a seven-year wait for general felonies and up to 15 years for felonies involving moral turpitude, with certain convictions resulting in a permanent bar. The specifics vary, so check your state’s Department of Insurance before spending money on the process.

Disclosing Your Criminal History

The state license application requires full and honest disclosure regardless of whether you needed a 1033 waiver. Applications ask specific background questions, and lying on them is treated as fraud or misrepresentation. In most states, the dishonesty alone is grounds for automatic denial and can poison any future application.

Report every conviction unless the application specifically excludes it. That includes charges that were deferred, dismissed after probation, or expunged. When in doubt, disclose. State regulators run their own background checks, and any gap between what you reported and what they find will almost certainly cost you the license. Attach all required documentation, including your granted 1033 waiver if one applied.

Licensing in More Than One State

If you plan to sell insurance across state lines, you will need a nonresident license in each additional state. NAIC guidance is that nonresident applicants generally should not have to apply for a separate 1033 waiver in every state; the home state’s consent is supposed to carry over.³

There is a catch. A secondary state can require its own waiver if your home state did not issue one or does not grant waivers on the same terms.³ Every state also runs its own background review for nonresident applicants, so a felony overlooked at home might still cause problems elsewhere. Get your resident-state waiver and license in place first, then apply for nonresident licenses one state at a time.

Reporting New Charges After You Are Licensed

The disclosure duty does not end at licensure. Licensed insurance professionals have an ongoing obligation to report criminal history changes to their state’s Department of Insurance. If you are arrested, charged with a felony, or convicted of any new offense after receiving your license, you typically must notify the department in writing within 30 days.⁴

When you report a new conviction, expect to submit a signed statement explaining what happened, certified court documents, and any rehabilitation evidence. Regulators then decide whether to take action, which can range from a reprimand to revocation. Departments also receive automated criminal history updates after licenses are issued, so they will likely learn of a new conviction even if you say nothing. Failing to self-report can itself trigger discipline and become a public matter reported to the NAIC.⁴

1
Office of the Law Revision Counsel. 18 USC 1033 – Crimes by or Affecting Persons Engaged in the Business of Insurance Whose Activities Affect Interstate Commerce
2
Simas & Associates, Ltd. 1033 Consent Waiver
3
National Association of Insurance Commissioners. Template for 1033 Consent Process
4
California Department of Insurance. Producer Background Information