Maryland Title Insurance Producer Practice Exam 2025 - Free Title Insurance Practice Questions and Study Guide

The Insurance Fraud Protection Act establishes strict guidelines regarding individuals who have been convicted of felony crimes and their ability to engage in the insurance business. The correct choice highlights that individuals who have felony convictions may only participate in the insurance industry if they obtain written consent from an insurance regulatory official.

This provision is in place to ensure that the integrity of the insurance profession is maintained, protecting consumers and the industry alike. Regulatory officials assess the circumstances surrounding the felony convictions, including the nature of the crime, the time elapsed since the conviction, and evidence of rehabilitation before granting permission to engage in insurance activities. This requirement underscores the accountability and scrutiny placed on individuals with such backgrounds, aiming to prevent fraudulent practices and maintain public trust in the insurance market.

While other options may suggest conditions under which involvement might be permitted, such as expungement of records or the time elapsed since the crime, they do not accurately reflect the condition that specific regulatory consent is necessary. The uniqueness of written consent as a prerequisite shows the state's assertive approach to regulating the insurance industry and upholding ethical standards.