Another state insurance department has issued a warning about a Tennessee entity posing as an insurance company. Days after National Foundation of America (NFOA) of Franklin, Tenn., was ordered to cease and desist from the insurance business in Texas, Arkansas Insurance Commissioner Julie Benafield Bowman cautioned Arkansas consumers about the Tennessee-based charitable organization.
The NFOA is allegedly an unauthorized entity marketing an annuity product to consumers by convincing them to replace existing annuities or cash value life insurance policies for a “tax-deductible installment plan,” the department’s announcement said. NFOA says this plan will produce guaranteed income each year while lowering taxable income by up to 50 percent, according to its Web site. They also market installment contracts on real estate.
“Our department has not received any evidence that NFOA has been marketing their products in Arkansas,” Bowman said. “However, I want to remind Arkansans they should only purchase insurance products from a registered insurance or financial company and a licensed insurance agent or broker.”
To check the license status of a company or agent or to report a complaint, consumers may call the Consumer Services Division of the Arkansas Insurance Department at 1-800-852-5494.
Source: Arkansas Insurance Department
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