Minnesota Insurance Fraud Laws

• Presenting or preparing any information containing a false representation about a material fact on behalf of an insurance consumer, specifically for:
  • An application, renewal, or payment of an insurance policy
  • An insurance claim for payment or benefit
  • A loan or other finance transaction application
• Presenting or preparing any information containing a false representation about a material fact to or by an insurer, specifically about:
  • Soliciting the sale of an insurance policy
  • An application for a certificate of authority
  • The financial condition of an insurer
  • The acquisition, merger, or dissolution of an insurer
• Soliciting or accepting new or renewal insurance risk for an insolvent or bankrupt insurer
• Removing assets or records of assets or transactions from the insurer’s office or destroying them
• Diverting, misappropriating, or embezzling insurance consumer funds related to insurance transactions, business activities, or acquisition, mergers, or dissolutions of insurers

• For more than $35,000 in defrauded value, the penalty is not more than 20 years in prison and a fine up to $100,000
• For $5,000 to $35,000 stolen, the punishment is up to 10 years imprisonment and up to a $20,000 fine
• For $1,000 to $5,000 taken, the sentence is not more than 5 years and not more than $10,000
  • This also applies for property or services stolen from $500 to $1,000 with a prior conviction for theft, burglary, robbery, receiving stolen property, unemployment benefit fraud, forgery, forging checks, credit card fraud, or public benefit fraud in the last 5 years
• For $500 to $1,000 in value, the penalty is no more than 1 year in jail and a $3,000 fine
• For up to $500 in value, the punishment is up to 90 days in jail or a fine up to $1,000

Also, defendants will be ordered to pay back persons harmed by the insurance fraud, called restitution. Restitution is generally ordered in addition to fine and imprisonment, not in lieu of either.