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    Delaware Bill Cracks Down on Fraudulent Certificates of Insurance

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    On March 25, 2014, Delaware’s House of Representatives passed HB 104 “An Act To Amend Title 18 Of The Delaware Code Relating To Certificates Of Insurance” by a vote of 38 to 0. The bill, which passed in the Senate on March 19th by a vote of 18 to 0, is on its way to the governor for consideration.

    If enacted, the legislation would:

    • prohibit a person from requesting the issuance of a certificate of insurance that does not accurately reflect the underlying policy;
    • prohibit the issuance of a false or misleading certificate or one that purports to alter, amend, or extend the coverage provided by the insurance policy;
    • prohibit the use of a certificate to warrant that a policy of insurance complies with the insurance or indemnification requirements of a contract; and
    • enable the Department of Insurance to issue cease and desist orders and assess fines against parties that request false or misleading certificates.

    To view a copy of the bill, click here

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