Colorado today issued an emergency cease and desist order tohalt the operations of a firm it said was selling fake autoinsurance over the Internet.

|

The state insurance division said it first learned of the fraudin late March or early April and is disclosing its findings at thistime only because it has been unable to determine how many autoinsurance consumers in the state have been defrauded.

|

The division said today it launched an investigation into theGlobal Healings Society, also known as the Auto Bond, based out ofPuyallup, Wash., in late March or early April after a Coloradoconsumer complained that Global Healings failed to pay her autoinsurance damage claims after she was involved in an accident.

|

Colorado Insurance Commissioner David Rivera said the probe isbeing disclosed now because the division is concerned that thereare additional Colorado consumers who have purchased the fakeinsurance from Global Healings.

|

“Some unsuspecting Colorado drivers may not realize they do nothave auto insurance that complies with our laws until they make aclaim, and then it is too late,” he said.

|

A spokesman for the division said the defrauded consumer toldthem the name of the producer of the policy; an agent based out ofstate, and said the division continues to investigate that.

|

The spokesman for the division said its records show that GlobalHealings never held a license to transact insurance business in thestate of Colorado. It also appears that the entity's product doesnot satisfy Colorado's financial responsibility laws, and that“Global Healings has failed to respond to the insurancecommissioner's order requesting additional information on itsproduct.”

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.