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Delaware Insurance Fraud Laws

In Delaware, insurance fraud is criminalized under the Delaware Insurance Fraud Prevention Act. The purpose of the act is to combat insurance fraud by detecting fraud, reducing the occurrence of fraud, requiring the restitution of fraudulently obtained insurance benefits, and reducing the amount of premium dollars used to pay fraudulent claims.

Insurance fraud can be committed in a variety of different ways. It can be committed by people seeking insurance, people who are insured, insurance practitioners, or by insurance providers. The table below briefly outlines some of the main ways in which insurance fraud can be committed in Delaware.

Code Section

Delaware Code section 2407: Insurance Fraud

What's Prohibited?

It is a fraudulent insurance act for a person to knowingly, with the intent to injure, defraud, or deceive, engage in any of the following acts:

  • Present (or assist in the presentation of) any false, incomplete, or misleading statement to an insurer in support of an insurance application or a claim for payment or other benefit under an insurance policy, or
  • Prepare, present, or demand the issuance of a certificate of insurance that contains any false or misleading information concerning an insurance policy

It is a fraudulent insurance act for a practitioner to knowingly and willfully assist, conspire with, or urge any person to violate any prevision of this section.

It is a fraudulent insurance act for any insurer (or any person acting on behalf of an insurer) to knowingly, with the intent to injure, defraud, or deceive present to an insured party false, incomplete, or misleading information regarding the nature, extent, and terms of the insurance coverage that may be available.

Reporting Insurance Fraud

Any insurer who has a reasonable belief that an act of insurance fraud is being or has been committed must report the suspected fraud to the Delaware Insurance Fraud Prevention Bureau (the Bureau). Additionally, an insurer who reports suspected fraud must also submit all requested information that relates to the fraudulent act. Individuals who report suspected insurance fraud in good faith to the Bureau are immune from civil liability for libel, slander, or any other relevant tort.

Additional Resources

State laws change frequently. For case specific information regarding Delaware's insurance fraud laws contact a local criminal defense lawyer or consumer protection attorney.

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