Thursday, March 25, 2010

TN officials seize offices of alleged multi-state illegal health insurance operation

The Tennessean is reporting that state insurance regulators this morning took control of two companies we've been warning Washington consumers about for months:

From the paper:
State insurance regulators today took control of two Robertson County companies that have been accused of selling illegal health insurance policies to thousands of consumers nationwide.

The Tennessee Department of Commerce and Insurance appeared to be in control this morning of the Springfield offices of Smart Data Solutions LLC and American Trade Association. The companies have been accused by insurance regulators in at least 20 states of selling bogus health insurance policies to unspecting consumers nationwide.
Tennessee officials, the paper reports, are asking a court to put the businesses into receivership.

Here in Washington, we're well acquainted with these companies. In January, we issued this cease and desist order against them, ordering them to stop selling illegal health insurance products here.

We know of at least 70 Washingtonians who bought such coverage. Some have reported problems with delayed or unpaid claims. Nationwide, more than 10,000 consumers are believed to have purchased such coverage at a cost last year of more than $14 million.

Many insurers, as a condition of doing business here, are required to file a lot of information with us: their financial reports, copies of their policies, sales data, etc. This allows the state to ensure that insurers are able to make good on their promises, and helps us protect consumers from getting ripped off.

If you live in Washington and have purchased this coverage, please call our consumer hotline at 1-800-562-6900.

No comments:

Post a Comment