State RegulationsNC specificDifficulty 3/5
An officer of an insurance company willfully makes a false statement in a financial report the company is required to file under oath with the Commissioner. What is the consequence for the officer, and what fine may the court impose on the company?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-2-180, a person who willfully makes a false statement in a statement required under oath or by subscription commits a Class I felony, and the entity is fined by the court $2,000 to $10,000. This provision is distinct from the misdemeanor offense for false statements in insurance applications.
Why the other options are wrong
- A) The offense for false statements under oath is a Class I felony, not a misdemeanor, and the $100-to-$1,000 range is the Commissioner's civil penalty, not a court fine.
- C) The $1,000-to-$5,000 range applies to willful violation of a cease-and-desist order, not to entity fines for false statements.
- D) The entity fine is correct, but the individual's offense is a Class I felony, not a Class 1 misdemeanor.
Memory hook
Lie under oath: felony for you, 2,000 to 10,000 for the company.