Florida Insurance Commissioner Orders Several Companies and Individuals to Cease And Desist the Unauthorized Sale of Health Insurance Products -- because the insurers were misrepresenting what they were selling. The GOP wants to make it harder to punish such con men.
TALLAHASSEE, Fla. - Florida Insurance Commissioner Kevin McCarty today announced the Florida Office of Insurance Regulation (Office) has issued an Order to a dozen entities, including companies and their officers, for the unauthorized sale of health insurance products to approximately 2,500 Floridians. The Order notifies the companies and their officers that the Office will issue a Final Order to Cease and Desist from engaging in the unauthorized transaction of insurance in Florida. These entities include:
Beema-Pakistan Company, 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, L.L.C., SDS Management Group, Bart Posey, Richard Bachman, and Obed Kirkpatrick.
The Office initiated an investigation after receiving numerous complaints about "fax blasts" or unsolicited faxes; these faxes advertised inexpensive health insurance coverage. According to some Florida residents who received these faxes and responded, the policies issued were not for major medical insurance as represented. Instead, the policies were for unauthorized limited benefit plans. -more-
Right now, selling nearly-worthless insurance is sanctionable by state insurance departments. If the GOP were to get its way, the fraudsters named above would be able to sell useless insurance without much fear of consequences at all because states like Florida would find it almost impossible to punish companies that weren't registered in the state. Don't believe the GOP the next time they imply that insurance companies cannot sell anywhere they want in the country. They can. They just need to follow the rules and regulations. The GOP wants to gut consumer protection rules. You may save money, but you won't get comparable insurance.