Beware Of Fake Insurance Policies
State insurance regulators in Michigan have charged two businesses with selling fake health insurance policies, and the Georgia Insurance Commission issued cease and desist orders to two organizations allegedly acting as unlicensed insurers.
The Michigan Office of Financial and Insurance Regulation (“MOFIR”) ordered American Consumers Insurance (“ACI”) and its partner agency, Real Benefits Association (“RBA”), to stop selling allegedly fake health insurance policies. The allegedly fake policies, which were marketed through radio advertisements, were sold in Michigan, Arkansas, New Jersey and New York. “Basically these consumers [who purchased health insurance] were holding worthless pieces of paper,” said Jason Moon, a spokesman for MOFIR. Regulators have also advised consumers who purchased health insurance coverage from ACI and RBA to immediately seek out and purchase legitimate medical insurance.
In Georgia, the Insurance Commission issued cease and desist orders to The Butler Aid Society and God First Missionary Membership Association and Floral Club. Both organizations offered cash payments to members upon death, though neither entity is a licensed insurance company or registered as a pre-need funeral business. “There’s a serious financial risk to consumers whenever you have a small operation like this, run out of somebody’s hip pocket without proper capitalization and regulatory oversight,” said Insurance Commissioner John W. Oxendine.
If you have purchased a health insurance policy through ACI and/or RBA, or a policy from The Butler Aid Society and/or God First Missionary, please contact us to discuss your legal options.