WA orders insurance company for law enforcement to stop operating

An insurance company aimed at retired local law enforcement officers has been illegally operating in Washington and has not processed health insurance claims, according to state officials.

Washington Insurance Commissioner Patty Kuderer on Thursday sent a cease and desist order to Texas-based Thin Blue Line Benefits to stop operating as an unlicensed health insurance company in the state. Kuderer's office began investigating Anna and Guineth Reed's company in July and found it sold unauthorized health insurance to members of the National Fraternal Order of Police, according to a news release.

Forty-one Washingtonians filed complaints alleging the company failed to process health insurance claims. According to the insurance commissioner's office, Thin Blue Line misrepresented itself to the public as a self-funded plan covered by the Employee Retirement Income Security Act — typically employer-sponsored plans. The company was not licensed to sell insurance by the office, which is illegal, according to the release.

The company has also been investigated and ordered to stop operating by Arizona and Ohio.

In a statement, Thin Blue Line stated the company shut down its operations and health care plans nationally on Aug. 31. The company will complete any outstanding Washington members claims in the next two weeks," according to the statement.

According to spokesperson Stephanie Marquis, a spokesperson for the insurance commissioner's office, the company indicated it has taken in over $1 million from Washington members for the 2024-25 operating year. Records show the company has been operating in the state since at least January 2023, Marquis said.

Ocean Shores, Grays Harbor, resident Dustina Pruitt, 61, and her husband, Richard, purchased Thin Blue Line insurance in 2024. Richard Pruitt, 63, was a Seattle police officer for about 32 years and is now retired. The couple has paid about $45,000 in insurance premiums to the company and has somewhere between $35,000 and $40,000 in unfulfilled claims for medical care they got in 2025, Dustina said.

"We feel like we were deceived," Dustina Pruitt said in an interview.

The couple filed for Chapter 13 bankruptcy in January, for 2024. Now faced with medical bill collections, Richard has gone from working two days a week to four, and the Pruitts are considering selling their house in Ocean Shores.

Dustina Pruitt said she doesn't believe the company's promises that it will pay for outstanding claims.

"I just wish that we all had a recourse," Dustina Pruitt said. "Or we could find out the truth: … Are they going to pay these bills? Are they not going to pay the bills? We just need to know because right now we're not going to the doctor unless we absolutely have to."

Kuderer advised Washington residents to check insurance companies’ qualifications before buying coverage.

“There are, sadly, a lot of bad actors out there taking advantage of people just looking for reasonable health coverage,” Kuderer said in the release. “It’s important to buy insurance from a company licensed to do business in your state.”

In an email, Thin Blue Line CEO Anna Reed said there "have never been more than 44 members in the state of Washington. The company has more than 2,000 customers nationwide.

Anyone with a question or complaint about Thin Blue Line can contact the insurance commissioner's office at 800-562-6900.

© 2025 The Seattle Times. Visit www.seattletimes.com. Distributed by Tribune Content Agency, LLC.