State RegulationsNC specificDifficulty 2/5
A person in North Carolina knowingly uses false pretenses to obtain insurance benefits to which he is not entitled. Under G.S. 14-100, how is this insurance fraud prosecuted?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
North Carolina prosecutes insurance fraud under G.S. 14-100, the general false pretenses and cheats statute, rather than under a specialized insurance fraud provision. Obtaining property by false pretenses is a felony whose classification depends on the value of the property or benefits obtained. This means a fraudulent benefits claim exposes the claimant to felony prosecution under the general criminal law, alongside any administrative action by the Commissioner of Insurance.
Why the other options are wrong
- A) G.S. 14-100 false pretenses is a felony statute whose grade varies with the amount obtained; it is not fixed as a Class 1 misdemeanor.
- B) False pretenses is a criminal prosecution under G.S. 14-100, not merely a civil enforcement matter for the Commissioner.
- D) The amount obtained determines the felony classification under G.S. 14-100, but there is no universal minimum threshold below which prosecution is impossible.
Memory hook
Insurance fraud borrows the old false-pretenses felony — grade follows the take.