The North Dakota Insurance Department issued a cease-and-desist to three companies for deceptive mailing practices. The companies named in the order are RGI Data Assets, Inc., Direct Mail Processing, LLC, and Mail Pro Leads, LLC, and they distributed deceptive materials to at least 1,223 North Dakota consumers.
The companies sent insurance solicitation "T-2" mailers to North Dakota consumers which looked similar to an IRS tax form, and requested consumers to provide personal information. The companies would collect this information to sell to insurance agents to solicit potential clients. The mailers would also use phrases like "Open Immediately" and "Time Sensitive" to convey a sense of urgency.
This practice violates North Dakota Century Code Section 26.1-26-03, which states that a person may not sell, solicit, or negotiate insurance in the state unless the person is licensed for that line of authority. None of the companies are, or have ever been, a licensed North Dakota business entity insurance producer.
The three named companies are ordered to immediately cease and desist from soliciting or otherwise engaging in insurance business in the state, including on their own behalf or on the behalf of others. Violators will be guilty of a class C felony.
The news release can be found here.