WILLIAM DONALD SCHAEFER, Governor                           Ch. 105

(1)      Knowingly or willfully make any false or fraudulent statement or
representation in or with reference to any application for insurance;

(2)      Place insurance with an unauthorized insurer not regulated by the
Commissioner and refuse to obey an order by the Commissioner to produce for
examination all policies and other documents evidencing the insurance and the amount of
premiums paid or agreed to be paid for the insurance;

(3)      Where a certificate of authority is required, operate an insurer or
conduct an insurance business without obtaining a certificate of authority issued by the
Commissioner;

(4)      Make a false sworn statement that the person does not believe to be true
as to matter material to an examination, investigation, or hearing conducted by the
Commissioner; or

(5)      With intent to deceive, knowingly exhibit a false account, document, or
advertisement, relative to the affairs of an insurer.

[(e) A person who violates this section is guilty of a misdemeanor and is subject to
a fine of up to $10,000 or imprisonment for up to 3 years or both.]

(F) (1) (I) A PERSON CONVICTED OF VIOLATING ANY PROVISION OF THIS
SECTION WHERE THE CLAIM OR ACT THAT IS THE SUBJECT OF THE FRAUD HAS A
VALUE OF $300 OR GREATER IS GUILTY OF A FELONY AND FOR EACH SUCH
VIOLATION SHALL RESTORE TO THE VICTIM THE PROPERTY TAKEN OR THE VALUE
OF THE PROPERTY TAKEN AND SHALL BE FINED AS DESCRIBED IN PARAGRAPH (2)
OF THIS SUBSECTION OR BE IMPRISONED FOR NOT MORE THAN 15 YEARS OR BOTH.

(II) A PERSON CONVICTED OF ANY OF THE PROVISIONS OF THIS
SECTION WHERE THE CLAIM OR ACT THAT IS THE SUBJECT OF THE FRAUD HAS A
VALUE OF UNDER $300 IS GUILTY OF A MISDEMEANOR AND SHALL RESTORE TO THE
VICTIM THE PROPERTY TAKEN OR THE VALUE OF THE PROPERTY TAKEN AND
SHALL BE FINED AS DESCRIBED IN PARAGRAPH (2) OF THIS SUBSECTION OR BE
IMPRISONED FOR NOT MORE THAN 18 MONTHS OR BOTH.

(2) IN ADDITION TO THE PENALTIES PROVIDED IN PARAGRAPH (1) OF
THIS SUBSECTION:

(I)       A PERSON CONVICTED OF VIOLATING ANY PROVISION OF
SUBSECTION (B) OF THIS SECTION SHALL FOR EACH SUCH VIOLATION BE SUBJECT
TO A FINE, THE MAXIMUM OF WHICH SHALL NOT EXCEED THREE TIMES THE VALUE
OF THE CLAIM OR ACT THAT IS THE SUBJECT OF THE FRAUD OR $10,000, WHICHEVER
IS GREATER, AND THE MINIMUM OF WHICH SHALL BE $500.

(II)     A PERSON CONVICTED OF VIOLATING ANY PROVISION OF
SUBSECTION (C), (D), OR (E) OF THIS SECTION IS FOR EACH SUCH VIOLATION
SUBJECT TO A FINE NOT TO EXCEED $10,000.

- 1207 -