Insurance is mostly state-regulated, but Congress made certain dishonest conduct a federal crime for anyone in the business of insurance whose activities affect interstate commerce. Think of it as a federal backstop against insiders who lie, steal or obstruct.
Conduct 18 U.S.C. §1033 makes a crime includes:
knowingly making a false material statement in a financial report to an insurance regulator, with intent to deceive
willfully embezzling or misappropriating the premiums or other funds of the insurance business
making false entries in its books
corruptly obstructing, for example by threats, a proceeding before an insurance regulatory official
Prohibited persons and written consent: §1033(e) bars a person convicted of a felony involving dishonesty or breach of trust from engaging in the business of insurance. Under §1033(e)(2), that person may work in the business with the written consent of an authorized insurance regulatory official that specifically refers to this subsection. With that consent, the work is lawful.
Penalties: criminal penalties under §1033 include a fine, up to five years in prison, or both for violating subsection (e). Separately, under §1034(a) the Attorney General may bring a civil action; if the conduct is proven by a preponderance of the evidence, the civil penalty is up to $50,000 for each violation or the amount of compensation received or offered for the prohibited conduct, whichever is greater. The two amounts are not added together: a person paid $80,000 for one violation faces up to $80,000.