Thursday's ruling by U.S. District Judge
Dorfman's customers will be contacted within days by the distributor of their plans,
Simple Health Plans and numerous affiliated companies have been shut down since
Simple Health Plans earned nearly
Dorfman found prospective customers who searched for health insurance information on the Internet and filled out forms on websites he controlled with names like trumpcarequotes.com, www.obamacare-plans.com and myobamacareapplication.com that featured logos of well-known insurers such as
Dorfman's sales agents would then contact the prospects and recite a sales script with insurance terms like "PPO," "copay," "deductible," "coverage" and "preexisting condition" that had no relevance to the "practically worthless" packages of hospital indemnity plans, limited benefit plans and discount memberships sold to the victims.
Far from covering most of victims' health care and hospitalization expenses as sales agents promised, the limited benefit hospital indemnity coverage sold by Dorfman paid a maximum of
In January, the
Last week, two federal lawsuits were filed against
Under the plan approved Thursday,
The consumers will be given 60 days to call
Consumers who choose to cancel will be entitled to refunds of any payments made after the judge's
Many of the existing customers likely do not know the "true nature" of the products they purchased due to Simple Health Plans' deceptive sales practices, the
A preliminary injunction against Simple Health Plans, approved by
In a motion opposing the
But the judge disagreed, finding good cause to believe the customers were deceived.
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