State RegulationsNC specificDifficulty 2/5
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?
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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 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.