N.D. Commissioner Issues C&D Order Against American Life Healthcare

North Dakota Insurance Commissioner Jim Poolman has issued a Cease and Desist Order against American Life Healthcare Inc., a San Diego, California-based company.

Poolman said that the company has advertised in North Dakota in violation of a new state law aimed at curbing abuses in the marketing of discount medical plans.

This Cease and Desist Order is the second issued to enforce a statute that was passed in 2005. Poolman said, “This order represents my ongoing efforts to crack down on these types of plans. These plans mislead consumers into thinking that they are purchasing insurance. It’s not insurance – it’s not even close.” Poolman’s order alleges that American Life Healthcare’s advertisement lacked the proper disclosures and was misleading.

Poolman said “Some of these discount medical plans won’t even provide their list of participating providers until the consumer signs up and pays money.” Consumers who realize their mistake and quickly try and cancel their membership often have difficulty getting their money back. Poolman added, “The Insurance Department stands ready to help these consumers get the refunds they are entitled to.”