Bill > SB45

This bill adds a new section to Delaware's criminal code that specifically addresses application insurance fraud, creating clear legal definitions and penalties for fraudulent activities related to insurance applications. The bill defines application insurance fraud as intentionally presenting false, incomplete, or misleading statements to an insurer when applying for or renewing insurance, or assisting others in doing so, with the purpose of obtaining fees, commissions, or other benefits. The law applies broadly, including health service corporations, health maintenance organizations, and managed care organizations. The severity of the offense depends on the financial value of the fraudulent activity: if the wrongfully obtained or sought benefits are less than $1,000, it is classified as a class A misdemeanor, but if the value is $1,000 or more, it becomes a class G felony. The bill also specifies that each fraudulent act can be considered a separate offense, and allows for aggregation of multiple acts for establishing legal liability. Additionally, the bill includes a provision that a person's signature on an insurance application can be used as evidence that they have reviewed the document, which could help in prosecuting fraudulent claims.

Business and Industry

https://legis.delaware.gov/BillDetail?LegislationId=141796