An officer of an insurance company willfully makes a false statement in a financial report filed under oath with the North Carolina Department of Insurance. Under G.S. 58-2-180, what are the consequences?

Why D is correct

Under G.S. 58-2-180, a person who willfully makes a false statement in a document required to be filed or sworn under the insurance laws commits a Class I felony, and where the violator is an entity, the court may fine the entity from $2,000 to $10,000. The criminal exposure attaches to the individual, while the entity fine is imposed by the court - two distinct consequences that must not be blended with the administrative penalty tiers.

Why the other options are wrong

• A) The $100 to $1,000 civil penalty is the Commissioner's administrative remedy for ordinary violations; a willful false sworn statement is a felony under G.S. 58-2-180.
• B) Class 1 misdemeanor treatment belongs to false statements in insurance applications, and the $1,000 to $5,000 range is the cease-and-desist tier - neither matches this offense.
• C) The willful false statement is criminal when made; later correction does not erase the offense or the penalties.

Memory hook

Sworn false filing: felony for the person, $2,000 to $10,000 for the entity.