State RegulationsNC specificDifficulty 1/5
An individual acts as a life insurance producer in North Carolina without ever having obtained a license. What is the criminal classification of acting without a license?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-33-120, acting as a producer, adjuster, or appraiser without a license - or violating any provision of Chapter 58 whose punishment is not otherwise provided - is a Class 1 misdemeanor. Selling insurance unlicensed is therefore a criminal matter, not merely a regulatory one.
Why the other options are wrong
- A) A Class I felony is reserved for conduct such as willful false statements made under oath, not unlicensed activity.
- C) The conduct is a misdemeanor, not an infraction, so more than a fine is at stake.
- D) The offense does not depend on whether a customer suffered a loss; the unlicensed activity itself is criminal.
Memory hook
No license, no sale - or a Class 1 misdemeanor.