Florida Acts to Block Alleged Faux Health Insurers

The Florida Office of Insurance Regulation is taking action against a dozen companies and associated individuals for the unauthorized sale of health insurance products.

In an order from Insurance Commissioner Kevin McCarty, the office served notice that it was launching investigations with the intent of issuing a final order to cease and desist. The invalid insurance plans were sold to some 2,500 Floridians, according a statement.

The companies and individuals are: Beema-Pakistan Co. 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 LLC., SDS Management Group, Bart Posey, Richard Bachman, and Obed Kirkpatrick.

Regulators launched an investigation following numerous complaints about "fax blasts" or unsolicited faxes that advertised inexpensive health insurance coverage. However, according to the complaints, the policies issued were for unauthorized limited benefit plans, not major medical insurance.

The companies and individuals have 21 days to challenge the office's action, according to the statement.

Kansas recently issued a cease-and-desist order to several of the same companies and individuals (BestWire, Feb. 18, 2010). In 2009, Indiana cited Serve America Assurance, American Trade Association and Smart Data Solutions for deceptive consumer sales.

Ohio Insurance Director Mary Jo Hudson issued a consumer alert regarding health insurance products purchased through Real Benefits Association and Clark, its owner (BestWire, July 29, 2009). Ohio's July 2009 enforcement action included a cease and desist order against Beema and its affiliate, Serve America Assurance, which the department said was selling insurance products in the state without a license.

Attempts to contact the cited companies were unsuccessful.

(By Sean P. Carr, Washington Correspondent: [email protected])