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

Crime

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Mantzavinos
Last action: 2026-06-24
Official status: Signed 6/24/26
Effective date: Not listed

Plain English Breakdown

The official text does not specify an effective date beyond noting it was signed on June 24, 2026.

New Law Against Lying on Insurance Applications

This law creates a new crime for lying or giving false information when applying for insurance to get money, commissions, or benefits.

What This Bill Does

Creates a new crime called application insurance fraud in the Delaware criminal code.
Makes it illegal to submit written or oral statements with false, incomplete, or misleading facts on an insurance application if done with intent to deceive.
Prohibits helping others prepare fake documents for insurance applications knowing they contain false information.
Bans making false claims on applications just to get fees, commissions, money, or other payments from insurers.
Sets the penalty as a Class A misdemeanor unless the value involved is at least $1,000.

Who It Names or Affects

People who fill out insurance applications
Agents and brokers who help prepare insurance documents
Insurers including health maintenance organizations and managed care groups

Terms To Know

Class A misdemeanor: A criminal offense applied when the fraud involves less than $1,000.
Class G felony: A serious crime that carries heavier penalties, applied when the fraud involves at least $1,000.
Material fact: Important information on an application concerning any fact or thing material to such application.

Limits and Unknowns

The law does not state a specific date when the new rules begin to take effect.
It is unclear if this applies to applications made before the bill was signed by the Governor.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SA 1

1 • Mantzavinos

Passed 6/10/26

Plain English: This amendment changes the amount of money involved in an insurance scam that makes it a serious crime called a Class G felony.

The law now says you must steal at least $1,500 worth of property or benefits to be charged with a Class G felony for insurance fraud.

Bill History

2026-06-24 Delaware General Assembly
Signed by Governor
2026-06-18 Delaware General Assembly
Passed By House. Votes: 41 YES
2026-06-16 Delaware General Assembly
Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 11 On Its Merits
2026-06-11 Delaware General Assembly
Assigned to Economic Development/Banking/Insurance & Commerce Committee in House
2026-06-10 Delaware General Assembly
Amendment SA 1 to SB 45 - Passed By Senate. Votes: 19 YES 2 ABSENT
2026-06-10 Delaware General Assembly
Passed By Senate. Votes: 20 YES 1 ABSENT
2025-04-09 Delaware General Assembly
Amendment SA 1 to SB 45 - Introduced and Placed With Bill
2025-03-19 Delaware General Assembly
Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 1 Favorable, 5 On Its Merits
2025-01-16 Delaware General Assembly
Introduced and Assigned to Banking, Business, Insurance & Technology Committee in Senate

Official Summary Text

AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO INSURANCE FRAUD.
This bill adds a new crime of application insurance fraud under the criminal code to include fraudulent statements submitted in support of an application to obtain or renew insurance or made for purposes of obtaining a commission or other payment from an insurer. This bill makes application-related insurance fraud a class A misdemeanor unless the benefits wrongfully obtained or sought to be obtained is at least $1,000, in which case application insurance fraud is a class G felony.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Sen. Mantzavinos & Rep. Bush

Sens. Poore, Walsh, Wilson; Reps. Berry, Carson, D. Short, Snyder-Hall

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 45

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Chapter 5, Title 11, of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 913B. Application insurance fraud; class G felony; class A misdemeanor.

(a) A person is guilty of application insurance fraud when, with the intent to injure, defraud, or deceive any insurer the person does any of the following

:

(1) Presents or causes to be presented to any insurer, any written or oral statement including computer-generated documents as part of, or in support of, any application to obtain or renew insurance, knowing that such statement contains false, incomplete, or misleading information concerning any fact or thing material to such application.

(2) Assists, abets, solicits, or conspires with another to prepare or make any written or oral statement that is intended to be presented to any insurer in connection with, or in support of, any application to obtain or renew insurance, knowing that such statement contains any false, incomplete, or misleading information concerning any fact or thing material to such application.

(3) Makes false or fraudulent statements or representations on or relative to an application for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurers, agent, broker, or individual.

(b) Application insurance fraud under this section is a class G felony if the aggregate value of property, services, or other benefit wrongfully obtained or sought to be obtained is at least $1,000. Otherwise, application insurance fraud under this section is a class A misdemeanor. Each act of application insurance fraud shall constitute an additional, separate and distinct offense, except that 5 or more separate acts may be aggregated for the purpose of establishing liability pursuant to this section. Multiple acts of application insurance fraud which are contained in a single application or other document shall each constitute an additional, separate and distinct offense for purposes of this section.

(c) Proof that a person has signed or initialed an application or other document submitted in support of an application for insurance may give rise to an inference that the person has read and reviewed the application or other document.

(d) For purposes of this section, “insurer” shall include a health service corporation, health maintenance organization, or managed care organization, and “insurance” shall include benefits provided pursuant to subscriber contracts of health service corporations, health maintenance organizations, and managed care organizations.

SYNOPSIS

This bill adds a new crime of application insurance fraud under the criminal code to include fraudulent statements submitted in support of an application to obtain or renew insurance or made for purposes of obtaining a commission or other payment from an insurer. This bill makes application-related insurance fraud a class A misdemeanor unless the benefits wrongfully obtained or sought to be obtained is at least $1,000, in which case application insurance fraud is a class G felony.

Author: Senator Mantzavinos