State RegulationsNC specificDifficulty 2/5
An insurance company executive willfully makes a false statement in a financial statement that Chapter 58 requires to be made under oath and filed with the Commissioner. What consequence does North Carolina law attach?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 58-2-180, a willful false statement in a required statement under oath or subscription is a Class I felony for the individual who makes it, and the entity is fined by the court in the amount of $2,000 to $10,000. This criminal-tier consequence is far harsher than routine administrative penalties, reflecting the seriousness of lying on filings the Commissioner relies on for solvency oversight.
Why the other options are wrong
- B) The $100 to $1,000 civil penalty under G.S. 58-2-70(d) is the Commissioner's administrative remedy; it does not describe the criminal consequence of G.S. 58-2-180.
- C) G.S. 58-2-180 mandates a court fine on the entity of $2,000 to $10,000; probation without a fine is not the statutory outcome.
- D) For the individual the offense is a Class I felony, not a Class 1 misdemeanor, and the entity is also fined.
Memory hook
False sworn filing: person gets the felony, entity gets the $2,000-$10,000 fine.