An insurance company willfully makes a false statement in a financial statement filed under oath with the NCDOI. Under G.S. 58-2-180, what is the consequence for the entity?

Why C is correct

Under G.S. 58-2-180, a person who willfully makes a false statement in a statement required to be made under oath or by subscription is guilty of a Class I felony, and when the false statement is made by or on behalf of an entity, the court may fine the entity $2,000 to $10,000. The fine is imposed by the court, not by the Commissioner administratively.

Why the other options are wrong

• A) The Class I felony attaches to the individual making the willful false statement; automatic imprisonment of officers is not prescribed.
• B) The $100-$1,000 range is the Commissioner's civil penalty under G.S. 58-2-70(d), a different mechanism from the court fine under G.S. 58-2-180.
• D) G.S. 58-2-180 expressly reaches the entity through the court fine.

Memory hook

Entity lies under oath: judge fines it two to ten thousand.

Why C is correct

Under G.S. 58-2-180, a willful false statement made under oath or in a subscribed filing is a Class I felony for the individual who makes it, and the entity is fined by the court in the amount of $2,000 to $10,000. Because the question targets the company, the entity fine is the operative sanction, separate from any criminal exposure of the individuals who actually made the statement.

Why the other options are wrong

• A) The $2,000 to $10,000 fine under G.S. 58-2-180 is imposed on the entity by the court, not on individual officers; an individual faces a Class I felony instead.
• B) $100 to $1,000 is the Commissioner's general civil penalty under G.S. 58-2-70(d), not the court-imposed fine for a false sworn statement.
• D) $1,000 to $5,000 is the cease-and-desist forfeiture under G.S. 58-63-50, which requires a violated order that is absent here.

Memory hook

False sworn filing: the person gets a felony, the company gets $2k to $10k from the court.

Why C is correct

Under G.S. 58-2-180, a willful false statement in a document under oath or subscription is a Class I felony for the individual, and the court fines the entity not less than $2,000 nor more than $10,000. The entity fine is a separate court-imposed sanction and must not be confused with the Commissioner's administrative penalty ranges.

Why the other options are wrong

• A) The $100 to $1,000 range is the Commissioner's general civil penalty under G.S. 58-2-70(d), not the court's fine on the entity under G.S. 58-2-180.
• B) The $1,000 to $5,000 forfeiture applies to willful violations of cease-and-desist orders under G.S. 58-63-50.
• D) The entity is subject to a court fine under G.S. 58-2-180; the Class 1 misdemeanor treatment belongs to false application statements under G.S. 58-33-105.

Memory hook

Entity lies under oath: the court hits the company for two to ten grand.