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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 willfully makes a false statement in a financial statement filed under oath with the Commissioner. The responsible individual is guilty of a Class I felony. What fine may the court impose on the entity?

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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 required statement made under oath or by subscription is guilty of a Class I felony, and the entity is fined by the court in an amount of not less than $2,000 nor more than $10,000. The court, not the Commissioner, imposes this fine on the entity.

Why the other options are wrong

  • A) $1,000 to $5,000 per violation is the range for willfully violating a cease-and-desist order under G.S. 58-63-50.
  • C) $100 to $1,000 per violation is the Commissioner's administrative civil penalty under G.S. 58-2-70(d), not the court fine on an entity under G.S. 58-2-180.
  • D) G.S. 58-2-180 expressly authorizes a court fine of $2,000 to $10,000 on the entity, so no monetary fine is not the law.

Memory hook

False under oath: person = felony, company = two to ten thousand.

State RegulationsNC specificDifficulty 3/5

An insurance corporation willfully files a materially false statement under oath that the Commissioner required. The individual officer who signed it faces a Class I felony. What penalty applies to the corporation itself?

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 B is correct

G.S. 58-2-180 makes a willful false statement in a required sworn or subscribed filing a Class I felony for the person who makes it, and it directs the court to fine the offending entity $2,000 to $10,000. This court-ordered entity fine is a separate tier from the Commissioner's $100-$1,000 civil penalty under G.S. 58-2-70 and the $1,000-$5,000 cease-and-desist forfeiture under G.S. 58-63-50, and the three tiers are never blended.

Why the other options are wrong

  • A) The $100-$1,000 civil penalty under G.S. 58-2-70 is an administrative remedy ordered by the Commissioner, not the criminal fine on an entity under G.S. 58-2-180.
  • C) $1,000 to $5,000 is the penalty for violating a cease-and-desist order under G.S. 58-63-50; a false sworn statement by an entity triggers the G.S. 58-2-180 court fine.
  • D) G.S. 58-2-180 expressly authorizes a court fine of $2,000 to $10,000 against the entity, so corporations can be fined under Chapter 58.

Memory hook

Corporation caught lying under oath? The court fines it $2k-$10k.

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