Nebraska Insurance Fraud Laws

Code Section

What's Prohibited?

• Knowingly and with intent to defraud, presents or prepares (or assists, abets, solicits, or conspires with another to present) a statement relating to an insurance claim that contains false, incomplete, or misleading information
• Makes a false representation regarding the death or disability of a policy holder in order to obtain a benefit from an insurer
• Knowingly and willfully transacts any contract that violates this section
• Receives money for the purpose of purchasing insurance, but keeps the money for personal benefit
• Willfully embezzles or converts funds or other property of an insurer
• Knowingly and with the intent to defraud, possesses fake or counterfeit insurance policies, certificates of insurance, insurance identification cards, or insurance binders
• Knowingly and with the intent to defraud, makes a false entry or statement to the Department of Insurance
• Knowingly and with the intent to defraud removes or destroys assets or records of an insurer
• Knowingly and with the intent to defraud provides false, incomplete, or misleading information to an insurer in order to reduce workers' compensation insurance coverage
• Willfully operates or aids another in illegally operating a discount medical plan, or
• Willfully collects membership fees for a discount medical plan but fails to provide the promised benefits

Penalties

First violation: Fine of up to $5,000.

Second violation: Fine of up to $10,000.

Each subsequent violation: Fine of up to $15,000.