An officer of an insurance company willfully makes a false statement in a financial report the company is required to file under oath with the Commissioner. What is the consequence for the officer, and what fine may the court impose on the company?

Why B is correct

Under G.S. 58-2-180, a person who willfully makes a false statement in a statement required under oath or by subscription commits a Class I felony, and the entity is fined by the court $2,000 to $10,000. This provision is distinct from the misdemeanor offense for false statements in insurance applications.

Why the other options are wrong

• A) The offense for false statements under oath is a Class I felony, not a misdemeanor, and the $100-to-$1,000 range is the Commissioner's civil penalty, not a court fine.
• C) The $1,000-to-$5,000 range applies to willful violation of a cease-and-desist order, not to entity fines for false statements.
• D) The entity fine is correct, but the individual's offense is a Class I felony, not a Class 1 misdemeanor.

Memory hook

Lie under oath: felony for you, 2,000 to 10,000 for the company.