Here we go again - semantics... Telling someone there home will burn down simply because there is K&T in it - is a lie...
Which does not make you a liar - just misinformed - because you believe that to be true... The day you come to your senses, and still say it - then and only then will you be a liar...
Since most of the housing stock build prior to the 40's was wired in it - if wired, and wired with it when it was - and they all did not burn down makes the standard you set the last thread on the topic - wrong... And willingly or not - telling someone that their home will burn to the ground because of the presence of K&T is an act of fraud. Which also does not make you a fraud...
There are also people out there that tell customers their home is in danger just due to the fact that they have fuses, or FPE panels. Then again - the Ford Pinto was on the road for a long time before it was doomed to hysteria... And Saddam Hussein had weapons of mass destruction we still have yet to find.... Hype...
My point is you need to be objective - a building with any energized wire is an electrical fire hazard... Even one with all of the wiring in MI cable. To what degree? Truthfully I feel homes with ungrounded AC cable, and early cloth versions of NM cable would be more of a hazard than K&T.