State RegulationsNC specificDifficulty 1/5
A person in North Carolina uses materially false statements to obtain money in connection with an insurance transaction. Under North Carolina law, what provision is the vehicle for prosecuting this insurance fraud?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under G.S. 14-100, insurance fraud is prosecuted under North Carolina's general false pretenses statute, with the felony classification depending on the amount involved. The Commissioner's regulatory provisions address market conduct, but criminal prosecution of the fraud itself runs through the false pretenses statute.
Why the other options are wrong
- B) The unfair trade practices article provides civil and regulatory remedies for market conduct, not the criminal prosecution of fraud.
- C) The privacy act governs personal information handling and provides no fraud prosecution mechanism.
- D) The replacement regulation governs policy replacement procedures and carries no criminal fraud charge.
Memory hook
Insurance fraud is false pretenses - G.S. 14-100.