Senate adopts bill to criminalize fraudulent insurance‑application statements

The Delaware Senate on June 10 passed Senate Bill 45, a measure that adds application fraud to the state’s criminal insurance‑fraud statutes and adjusts monetary thresholds via Senate Amendment 1.

Senator Manzavinos (sponsor floor motion) said the bill reflects recommendations from an auto‑insurance task force and is intended to address a common source of insurance loss. Trinidad Navarro, Delaware’s Insurance Commissioner, told the Senate that application fraud imposes large costs nationwide and provided examples—such as buying auto insurance after an accident or failing to disclose pre‑existing damage to obtain a policy—while emphasizing that the statute is intended to target intentional, not inadvertent, errors on insurance forms.

“Unfortunately, some view insurance fraud as a victimless crime,” Navarro said, citing a national estimate of fraud‑related losses and an average national premium impact. He explained that the department’s fraud investigations typically stem from referrals by insurance companies and that the statute requires intent for an offense to be charged.

Senate Amendment 1 changed dollar thresholds to align the application‑fraud offense with other felony thresholds; the amendment was adopted on a roll call, and the final bill passed by a recorded vote of 20 yes and 1 absent.

The measure passed the Senate and will proceed as provided in legislative procedures toward final enactment.