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State RegulationsNC specificDifficulty 3/5

Under North Carolina law, which transaction must carry the statutory fraud warning stating that knowingly presenting false information is a felony?

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under G.S. 58-58-267, viatical settlement applications and purchase agreements must contain the statutory fraud warning that knowingly presenting false information is a felony. North Carolina has no general fraud-warning statute for ordinary life or health applications, so the warning is specific to viatical transactions.

Why the other options are wrong

  • A) No general fraud-warning statute applies to ordinary life applications in North Carolina; the requirement is limited to viatical transactions.
  • B) No general fraud-warning statute applies to accident and health applications; the statutory warning is viatical-specific.
  • C) Group enrollment forms carry no statutory fraud warning under North Carolina law; the warning applies to viatical documents.

Memory hook

Fraud warning rides only with viaticals.

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