Louisiana Department of Insurance Fraud Section investigators have served the American Trade Association, its 13 companion companies and 14 personnel with cease and desist orders, for selling unauthorized insurance in Louisiana. The companies are said to have fraudulently marketed “medical discount plans” as health insurance plans.
C&D orders were issued to American Trade Association Inc. (an Indiana corporation); American Trade Association Inc. (a Tennessee corporation); Smart Data Solutions LLC; Real Benefits Association; Serve America Assurance Ltd.; Beema-Pakistan Company Ltd.; Healthcare America; Integrated Health Plan Inc.; National Association of Business Leadership LLC and/or Inc.; Benefit Plan Administration; Insurance Resource Group; CEO Clubs Inc. (and CEO Club Benefits); Star Group U.K. Ltd., aka Phoenix Insurance Company; Association for Independent Managers (AIM Health Plans Inc.); Bart S. Posey; Angie Posey; Obed W. Kirkpatrick, Sr.; Linda Kirkpatrick; Richard H. Bachman; Kristy Wright; Colin J. Youell; David L. Clark; William M. Worthy, II; Ryan Adams; Tina Bennett; James Sean; Patrick Collins and Phillip Sylverin.
All entities and individuals mentioned above were directed to cease and desist from engaging in or transacting unauthorized insurance business, soliciting, offering, issuing, mailing or delivering any Louisiana resident a plan, policy, coverage, certificate, or any other contract which purports to provide insurance benefits or medical discounts for health benefits.
They were ordered to provide a complete listing of all Louisiana residents and businesses that purchased any insurance or discount plan product from them and report to the department all premiums received in connection with those customers. They are also ordered to notify any affected Louisiana customers of the C&D and issue an immediate refund of any monies or premiums held on behalf of the customers.
In addition to the Louisiana Department of Insurance, the Federal Trade Commission and law enforcement agencies in 23 other states have filed 50 lawsuits and regulatory actions to stop the scammers’ deceptive practices.
The FTC has filed three lawsuits targeting bogus medical discount scams, and Attorneys General and Insurance Commissioners have brought numerous enforcement actions to stop the scammers. They include lawsuits or regulatory actions addressing sham insurance, as well as illegal robocalls and fax blasting, and licensing violations.
Source: Louisiana Department of Insurance