State RegulationsNC specificDifficulty 2/5
A person submits a fabricated claim to an insurer to obtain money. In addition to insurance-law sanctions, criminal prosecution for this insurance fraud in North Carolina proceeds under:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
North Carolina prosecutes insurance fraud under the general false pretenses statute, G.S. 14-100, which criminalizes obtaining property by false pretenses; the felony classification depends on the amount involved. The insurance code does not supply a separate criminal fraud scheme for fabricated claims.
Why the other options are wrong
- A) G.S. 58-33-105 addresses false statements made in insurance applications (a Class 1 misdemeanor); it is not the vehicle for prosecuting a fabricated claim.
- B) G.S. 58-2-70 provides administrative civil penalties; it does not substitute for criminal prosecution.
- C) G.S. 58-62-21 governs the guaranty association and has nothing to do with prosecuting fraud.
Memory hook
Fraudulent claims go through the general false-pretenses statute.