California Insurance License Exam Practice Test Practice Question
It is a Federal offense for an insurance agent to do all of the following EXCEPT
Correct Answer: C
Rationale: Falsifying financial records (A), embezzling premium payments (B), and willfully engaging in insurance activities with a felony conviction (D) are all serious violations that constitute federal offenses due to their direct impact on trust and financial integrity in the insurance industry. In contrast, while misrepresenting facts on an insurance application (C) is unethical and may lead to disciplinary action, it does not automatically qualify as a federal offense unless it involves fraud on a larger scale. Thus, option C is the only action that may not rise to the level of a federal crime.
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