KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Delaware

SB45 • 2025

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

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

Crime
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Mantzavinos
Last action
2025-04-09
Official status
Out of Committee 3/19/25
Effective date
Not listed

Plain English Breakdown

The official source material does not specify what happens after the bill is passed and signed into law, nor does it provide details on how to prove someone committed insurance fraud.

Law Against Insurance Fraud When Applying for Coverage

This law makes it illegal to lie on insurance applications and sets penalties based on the amount of money involved.

What This Bill Does

  • Adds a new crime called 'application insurance fraud' which means lying or giving false information when applying for or renewing an insurance policy.
  • Makes application insurance fraud a class A misdemeanor if less than $1,000 is wrongfully obtained or sought.
  • Classifies application insurance fraud as a class G felony if the amount of property, services, or other benefit wrongfully obtained or sought is at least $1,000.

Who It Names or Affects

  • People who apply for or renew insurance policies
  • Insurance companies and their agents

Terms To Know

Class A misdemeanor
A type of crime that is less serious than a felony but more serious than an infraction.
Class G felony
The least severe category of felony crimes, which are the most serious types of criminal offenses.

Limits and Unknowns

  • Does not specify what happens after the bill is passed and signed into law.
  • Does not provide details on how to prove someone committed insurance fraud.

Amendments

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

SA 1

1 • Mantzavinos

PWB 4/9/25

Plain English: Legislation Document SPONSOR: Sen.

  • Legislation Document SPONSOR: Sen.
  • Mantzavinos DELAWARE STATE SENATE 153rd GENERAL ASSEMBLY SENATE AMENDMENT NO.
  • 1 TO SENATE BILL NO.
  • 45 AMEND Senate Bill No.

Bill History

  1. 2025-04-09 Delaware General Assembly

    Amendment SA 1 to SB 45 - Introduced and Placed With Bill

  2. 2025-03-19 Delaware General Assembly

    Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 1 Favorable, 5 On Its Merits

  3. 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; Rep. D. Short

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