Florida Office Of Insurance Regulation Orders Companies To Immediately Cease Illegal Health Insurance Solicitation

The Florida Office of Insurance Regulation has released the following information regarding the issuance of an Immediate Final Order to several health care entities for unauthorized health insurance solicitation of Florida consumers.

Should you have any questions or comments, please do not hesitate to contact this office.

 

Florida Office Of Insurance Regulation Orders Companies To Immediately Cease Illegal Health Insurance Solicitation

TALLAHASSEE, Fla. (12/05/2007) – The Florida Office of Insurance Regulation (Office) today issued an Immediate Final Order (Order) to Affinity Health Plans (Affinity), National Alliance Healthcare (NAH), the National Trade Business Alliance Association (NTBAA), the National Alliance of Associations (NAA) and all of their agents and other entities for unauthorized health insurance solicitation of Florida consumers.

The Order requires the unlicensed entities, Affinity and NAH, to immediately cease and desist from any unlicensed, unauthorized, transaction of insurance contracts covering Florida consumers. Both companies also must pay all outstanding claims and refund all money collected from Florida consumers within 10 days of the Order.

“This kind of unethical business practice will not be tolerated, so I am stopping it,” said Insurance Commissioner Kevin McCarty. “There are far too many people in Florida and across the country living without health insurance today, so consumers should not have to also try to sort through scams like this when attempting to buy health insurance.”

Neither NTBAA nor NAA or their president, Thomas J. Sullivan, has an insurance agent license issued by the Florida Department of Financial Services. Similarly, neither Affinity nor NAH has ever been granted a Certificate of Authority from the Office.

Affinity and NAH have been, and are currently, soliciting Florida consumers through fax blasting advertisements to purchase health insurance, dental insurance, hospitalization coverage, accident insurance, vision, hearing and chiropractic insurance. Each such transaction constitutes the unauthorized transaction of insurance and is considered a felony under Florida law.

From July 2006 to the present, about 800 Florida consumers have purchased insurance through either Affinity or NAH. The companies’ actions have generated numerous consumer complaints and have led to more than $100,000 in unpaid claims.

Section 626.901(5), Florida Statutes, states that the Office may, pursuant to Section 120.569, Florida Statutes, and in its discretion, issue an immediate final order to cease and desist to any person or entity that violates this section when it determines that a violation of this section constitutes an imminent and immediate threat to the health, safety, and welfare of the residents of Florida.

Consumers with questions or concerns should call the Department of Financial Services’ Consumer Helpline at 1-877-693-5236 or visit its Web site www.myfloridacfo.com.