Under Minnesota insurance law, a producer who knowingly makes a false statement in an application for insurance is guilty of:

A felony represents a more severe classification of crime, typically involving significant harm or intent to defraud that results in harsher penalties, including substantial prison time. However, under Minnesota law, making a false statement in an insurance application does not reach the threshold of a felony, as it is classified instead as a gross misdemeanor.

Gross negligence refers to a severe lack of care or failure to act in a manner that a reasonable person would under similar circumstances. While knowingly making a false statement could be seen as irresponsible, it is not classified as gross negligence under Minnesota insurance law. Instead, it is treated as a specific criminal offense—namely, a gross misdemeanor.

A petty misdemeanor is the least serious type of crime, usually punishable by fines only and not involving jail time. Since the act of knowingly making false statements in an insurance application is deemed more serious, it is classified as a gross misdemeanor rather than a petty misdemeanor.