Insurance agents are subject to punishment under both general criminal statutes and insurance-related statutes in state insurance codes based on their conduct in relation to insurers and insureds. Criminal penalties may still apply even if the agent is subject to civil sanctions for his actions despite the constitutional prohibition against double jeopardy because courts usually do not consider civil fines to be so excessive as to transform the fine into a criminal penalty.

The most common crimes committed by an agent include embezzlement, larceny, obtaining property by false pretenses, conversion, and theft in relation to policy premiums due to an insurer or policy proceeds due to an insured.

Some statutes relate to an agent's fraudulent appropriation of money from insurers and insureds in violation of their fiduciary duty to hold premiums or pay proceeds.

An agent may be guilty of conspiracy if he agrees with one or more persons to engage in or cause the performance of a criminal act. For example, he may conspire with a doctor or an insured to cause the issuance of a fraudulent health policy.

State insurance codes may also prohibit an agent's involvement in the presentation of an insured's false insurance claim.

In most jurisdictions, agents are guilty of a crime if they sell insurance or act in an agent's capacity without a valid license.

Agents may violate "anti-twisting" statutes, which make it a crime for an agent to provide misleading information to insureds in order to induce them to change their insurance policy to the agent's insurer.

In addition to state statutes, federal law makes it a crime to make misrepresentations or sell duplicate coverage in connection with certain Medicare policies.

Copyright 2010 LexisNexis, a division of Reed Elsevier Inc.