State RegulationsNC specificDifficulty 2/5
An officer of an insurance company willfully makes a false material statement in a financial statement filed under oath with the North Carolina Department of Insurance. Under G.S. 58-2-180, what is the consequence for the company as an 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 willful false statement in a statement made under oath or by subscription is a Class I felony for the individual who makes it, and the court fines the entity $2,000 to $10,000. The entity fine is imposed by the court rather than ordered by the Commissioner, and the two mechanisms must not be blended.
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), a different mechanism from the court fine for false sworn statements.
- C) The $1,000 to $5,000 forfeiture targets willful violations of cease-and-desist orders under G.S. 58-63-50.
- D) The statute prescribes a court-imposed fine for the entity; automatic revocation without a fine is not the consequence.
Memory hook
Lie under oath: person felony, entity $2k-$10k court fine.