Colorado today issued an emergency cease and desist order to halt the operations of a firm it said was selling fake auto insurance over the Internet.

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

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

Colorado Insurance Commissioner David Rivera said the probe is being disclosed now because the division is concerned that there are additional Colorado consumers who have purchased the fake insurance from Global Healings.

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

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

The spokesman for the division said its records show that Global Healings never held a license to transact insurance business in the state of Colorado. It also appears that the entity's product does not satisfy Colorado's financial responsibility laws, and that “Global Healings has failed to respond to the insurance commissioner's order requesting additional information on its product.”

Special Reports /

Colorado Probing Fake Insurance Firm

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