HOUSE BILL NO. 40
AN ACT TO AMEND CHAPTER 5, TITLE 18 OF THE DELAWARE CODE TO PROVIDE IMMUNITY FOR PERSONS WHO REPORT FRAUDULENT INSURANCE PRACTICES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 5, Title 18 of the Delaware Code by adding the following new Section:
§533. Immunity from Liability for Reporting Fraudulent Practices.
(a) As used in this Section 'fraudulent insurance act' means any act committed by any person who knowingly and with intent to defraud presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker, or any agent thereof, any written statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy for commercial or personal insurance which he knows to contain materially false information concerning any fact material thereto; or conceal for the purpose of misleading, information concerning any fact material thereto.
(a) In the absence of fraud or bad faith, no person shall be subject to civil
liability (for libel, slander or any other relevant tort cause of action by virtue of filing reports, without malice, or furnishing other information, without malice, required by this article or required by the Commissioner under the authority granted in this Title), an no civil cause of action of any nature shall arise against such person:
(1) for any information relating to suspected fraudulent insurance acts
furnished to or received from law enforcement officials, their agents and employees; or
(2) for any information relating to the suspected fraudulent insurance acts
furnished to or received from other PERSONS subject to the provisions of this Title; or
(1) for any such information furnished in reports to the Insurance Department, National Association of Insurance Commissioners or any organization established to detect and prevent fraudulent insurance acts, their agents, employees, or designees, nor shall the Commissioner or any employee of the Insurance Department, (acting without malice) in the absence of fraud or bad faith, be subject to civil liability (for libel, slander or any other relevant tort) and no civil cause of action of any nature shall arise against such person by virtue of the publication of any report or bulletin related to the official activities of the Insurance Department. Nothing herein is intended to abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person."
Approved May 15, 1987.