Delaware law penalizes deception in insurance applications

A person commits application insurance fraud by knowingly making, helping prepare, or using certain false or misleading statements. The rules cover insurance applications to obtain or renew coverage, including benefits provided by the named health organizations. For statements in or supporting an application to get or renew insurance, the person must intend to injure, defraud, or deceive an insurer, and the information must concern an important fact. The law also covers false or fraudulent statements about an insurance application made to get a fee, commission, money, or another benefit from an insurer, agent, broker, or individual. The offense is a felony if the value of property, services, or other benefit wrongfully obtained or sought is at least $1,500; otherwise, it is a misdemeanor. Five or more acts may be combined to establish liability, and multiple acts in one application or document count as separate offenses. For these rules, insurers include health service corporations, health maintenance organizations, and managed care organizations; insurance includes benefits under their subscriber contracts.