Which statement describes who may be liable for a willful violation that could be charged as Class 3 Misdemeanor?

• A. Policyholders only
• B. Regulators only
• C. Customers only
• D. Any company, association, society, other insurer, officer, or Insurance Producer

Answer: (D)

In North Carolina, willful violations of insurance laws or regulations can be punished as Class 3 misdemeanors by the broad group involved in the insurance business, not just a single category. This means liability can extend to any company, association, society, other insurer, officer, or Insurance Producer who willfully commits or facilitates the violation. The idea is to hold the entire chain of those engaged in the insurance process accountable, preventing attempts to shift blame to others.

That’s why the broad statement is the best answer: it explicitly includes the various roles that can be liable—corporate entities, industry bodies, other insurers, individual officers, and producers. The other options are too narrow, pointing to only one party (policyholders, regulators, or customers) who wouldn’t typically be the sole targets for willful violations within the insurance framework.