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?

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.