AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO INSURANCE FRAUD.

New criminal penalties for insurance application fraud

Delaware makes insurance application fraud a crime when someone intends to injure, defraud, or deceive an insurer. This covers spoken, written, or computer-generated statements used to get or renew insurance that contain false, incomplete, or misleading information important to the application. It also covers knowingly helping, encouraging, or planning with others to prepare or make such statements for submission. False application-related statements to get fees, commissions, money, or other benefits from insurers, agents, brokers, or individuals are also covered. The crime is a class G felony when the total value unlawfully obtained or sought is at least $1,000. Otherwise, it is a class A misdemeanor. Each act is a separate offense, even within one application or supporting document; five or more acts may be combined. Signing or initialing a document can support an inference that the signer reviewed it. The law also covers health service corporations, health maintenance organizations, managed care organizations, and benefits under their subscriber contracts.