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.