NU Online News Service, Feb.19, 3:44 p.m. EST
In the wake of an antifraud group warning about phony health insurance scams, Florida authorities said they have ordered 12 firms to halt the unauthorized sale of health insurance.
Yesterday the Coalition Against Insurance Fraud said an epidemic of bogus health plans has made the problem the number-one insurance fraud and that such scams are hitting small businesses as well as consumers.
Florida Insurance Commissioner Kevin McCarty said today that the Florida Office of Insurance Regulation has issued an order to a dozen entities, including companies and their officers, for the unauthorized sale of health insurance products to approximately 2,500 Floridians.
The order notified the companies and their officers that the OIR will issue a final order to cease and desist from engaging in the unauthorized transaction of insurance in Florida.
The listed entities included: Beema-Pakistan Company, LTD.; Serve America Assurance, LTD.; William Worthy II; Real Benefits Association; David L. Clark; Affinity Group Benefits Association Inc.; American Trade Association Inc.; Smart Data Solutions, L.L.C.; SDS Management Group; Bart Posey; Richard Bachman; and Obed Kirkpatrick.
OIR said it initiated an investigation after receiving numerous complaints about "fax blasts" or unsolicited faxes; these faxes advertised inexpensive health insurance coverage.
According to some Florida residents who received these faxes and responded, the policies issued were not for major medical insurance as represented. Instead, the policies were for unauthorized limited benefit plans.
"This order today should send a message to those considering the unauthorized marketing of health insurance products in our state," remarked Commissioner McCarty. "The Office will vigorously prosecute anyone perpetrating fraud on Florida consumers and violating Florida's insurance laws."
The companies and individuals have 21 days to challenge the OIR's action, it was explained.
Under Florida law a person or entity may not transact, administer, or market insurance products either in the State of Florida or from the State of Florida unless it is authorized to do so under a license issued by the OIR.
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