An applicant in North Carolina knowingly makes a false and fraudulent statement in an insurance application in order to obtain a policy. What is the criminal classification of this conduct?

Why C is correct

Under G.S. 58-33-105, a producer, examining physician, applicant, or any other person who knowingly or willfully makes a false or fraudulent statement in an insurance application, or to obtain a fee, commission, or benefit, commits a Class 1 misdemeanor.

Why the other options are wrong

• A) The general false pretenses statute is the vehicle for broader insurance fraud schemes; the specific offense for false application statements is the Class 1 misdemeanor under the licensing article.
• B) A Class I felony applies to willful false statements in required statements made under oath, not to statements in insurance applications.
• D) The conduct is expressly criminal; it is not merely a civil violation.

Memory hook

Fibbing on the application: Class 1 misdemeanor.