State RegulationsNC specificDifficulty 2/5
A person in North Carolina submits fabricated invoices to an insurer to obtain a claim payment that is not owed. Which statement correctly describes the criminal exposure under state law?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
G.S. 14-100, the false pretenses and cheats statute, is the general criminal provision under which insurance fraud is prosecuted in North Carolina. Obtaining property — including claim proceeds — by false pretenses is a felony whose class depends on the value of what was obtained. This differs from the Class 1 misdemeanor for false application statements under G.S. 58-33-105 and the Class I felony for false sworn statements under G.S. 58-2-180.
Why the other options are wrong
- A) Submitting fabricated invoices to obtain payment is criminal conduct prosecutable under G.S. 14-100, not merely an administrative penalty matter.
- B) The Class 1 misdemeanor in G.S. 58-33-105 covers false statements in insurance applications; a fabricated-claim scheme to obtain property falls under G.S. 14-100.
- C) The viatical fraud warning in G.S. 58-58-267 applies to viatical settlement transactions, not to ordinary fabricated insurance claims.
Memory hook
Fake invoices for payout = false pretenses; the amount sets the felony class.