A producer in North Carolina uses fabricated policy documents to trick an insurer into paying commissions on coverage that was never written. Which statute reaches this fraudulent scheme, and how is the offense classified?

Why D is correct

Insurance fraud — obtaining property such as commissions through deliberate deception — is prosecuted in North Carolina under the general false pretenses statute, G.S. 14-100. The felony class depends on the value of the property obtained, which is exactly why exam questions never key a specific amount to this offense. Administrative penalties and license actions may follow separately, but the criminal charge for the fraud itself arises under G.S. 14-100.

Why the other options are wrong

• A) G.S. 58-63-50 punishes willful violation of a cease-and-desist order; it neither defines the fraud nor supplies the criminal classification.
• B) G.S. 58-33-105 covers knowingly false statements in insurance applications as a Class 1 misdemeanor, but this scheme to obtain commissions by fabricated documents is property fraud prosecuted under G.S. 14-100.
• C) The $100 to $1,000 civil penalty under G.S. 58-2-70 is a regulatory remedy; it does not classify or replace the criminal false-pretenses charge.

Memory hook

Insurance fraud rides the general false pretenses statute — G.S. 14-100 — with class set by the take.