Regulators: Phony Health Plans Targeting Arkansas Consumers

May 20, 2008

Arkansas Insurance Commissioner Julie Benafield Bowman cautioned Arkansas insurance consumers concerning two companies illegally offering health insurance plans via unsolicited faxes.

One unlicensed company using these fax blasts is National Trade Business Alliance of America, which has been ordered by some states to stop offering, soliciting, issuing, or delivering health insurance to state residents. The company may have also marketed products under such names as Affinity Health Plans of America, National Trade Business Association, National Transportation Benefit Alliance, Qualified Administrative Specialists of America, Family Health Care Service, Inc., America’s Best Benefits, and American Employers Association, as well as others.

These faxed advertisements tout inexpensive rates to draw attention. However, the only contact information they provide is a toll free telephone number. No physical address is ever given. Another unlicensed entity using these same tactics is United Business Insurance Association.

“Our department has received information that some Arkansans have purchased bogus plans from National Trade Business Alliance of America,” said Bowman. “These unlicensed companies may not pay all your claims and do not abide by the insurance laws and regulations which are in place to protect Arkansas consumers.”

Warning signs exist in these unsolicited advertisements. One of the most obvious is if the price is too good to be true. Others are if no health information is required or the low price is offered for a limited time only.

Source: Arkansas Insurance Department,

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