State RegulationsNC specificDifficulty 1/5
A person in North Carolina knowingly uses false pretenses to obtain insurance benefit payments for himself. Which statement correctly describes the criminal exposure under North Carolina law?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Insurance fraud in North Carolina is prosecuted under the general false pretenses statute, G.S. 14-100, which criminalizes obtaining property by knowingly false pretenses. The felony classification depends on the amount obtained, so the same statute reaches both small and large frauds. This general criminal statute, not an insurance-specific provision, supplies the fraud exposure for benefit scams.
Why the other options are wrong
- B) G.S. 58-33-105 makes false statements in insurance applications a Class 1 misdemeanor, a distinct offense that does not displace prosecution under G.S. 14-100.
- C) A civil penalty under G.S. 58-2-70 is an administrative remedy and does not replace criminal prosecution.
- D) G.S. 58-63-50 applies only to willful violation of a cease-and-desist order, which is not part of this fact pattern.
Memory hook
Insurance fraud runs through G.S. 14-100 - false pretenses, felony by amount.