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One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsNC specificDifficulty 3/5

An insurance company's officer willfully files a false financial statement under oath as required by North Carolina insurance law, and the officer is personally guilty of a Class I felony. What penalty may the court impose on the corporation itself?

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under G.S. 58-2-180, a person who willfully makes a false statement in a required oath, affirmation, or subscribed statement commits a Class I felony, and when the violation is by an entity, the court fines the entity not less than $2,000 nor more than $10,000. This court-imposed corporate fine is a separate tier from the Commissioner's $100 to $1,000 civil penalties and the $1,000 to $5,000 cease-and-desist forfeitures.

Why the other options are wrong

  • A) The $100 to $1,000 civil penalty is the Commissioner's administrative remedy under G.S. 58-2-70, whereas this question concerns the court's fine on the entity under G.S. 58-2-180.
  • B) The $1,000 to $5,000 range under G.S. 58-63-50 punishes willful violation of a cease-and-desist order — a different offense with a different trigger.
  • D) G.S. 58-2-180 expressly contemplates a monetary fine on the entity; license action against the officer does not displace it.

Memory hook

False sworn statement: person = Class I felony, company = $2k to $10k fine.

State RegulationsNC specificDifficulty 3/5

A North Carolina insurer corporation willfully makes a false statement in a financial document filed under oath with the Commissioner. What is the consequence under the false-statement statute?

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under G.S. 58-2-180, a person who willfully makes a false statement in a document required to be sworn or subscribed commits a Class I felony, and when the violator is an entity, the court fines the entity $2,000 to $10,000. This criminal tier is separate from the Commissioner's administrative civil penalties and is triggered by sworn or subscribed false statements.

Why the other options are wrong

  • A) The $100 to $1,000 civil penalty is the Commissioner's administrative remedy for ordinary code violations, not the court fine for sworn false statements.
  • B) The $1,000 to $5,000 forfeiture applies to willful violations of cease-and-desist orders, which is not what happened here.
  • C) The corporation's exposure is a court fine of $2,000 to $10,000; the Class 1 misdemeanor applies to false statements in insurance applications, a different statute.

Memory hook

Sworn lies: person = felony, company = two to ten thousand.

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