Arkansas Reports Insurance Scam Targeting Consumers in That State

Arkansas Insurance Commissioner Jay Bradford has cautioned that a scam operation that has sold fraudulent health insurance in Oklahoma and Connecticut is now targeting Arkansans.

A company called American Trade Association is apparently illegally offering health insurance plans via unsolicited faxes in the state. In notice released by the Arkansas Insurance Department, Bradford said 39 people the department is aware of that purchased so-called insurance policies from American Trade Association have been notified. Bradford said he is concerned that “there are more Arkansans out there we do not know about who may have purchased what they think is a standard insurance policy.”

Generally, the faxed advertisements tout inexpensive rates to draw attention. However, the only contact information they may provide is a toll free telephone number. No physical address is ever given.

While American Trade Association is the main company selling these fraudulent health insurance plans, other company names the public should be wary of are Real Benefits Association, Serve America/Serve America Assurance Ltd., Smart Data Solutions, and Beema Insurance Group, according to the department.

Each of these companies was listed in a Cease and Desist Order issued by the State of Connecticut Insurance Department. Oklahoma also recently issued a Cease and Desist Order against American Trade Association as well as nearly thirty other companies in November.

The insurance department noted that warning signs exist in unsolicited advertisements. One of the most obvious is if the price is too good to be true. Others are if no health information is required or the low price is offered for a limited time only.

Source: Arkansas Insurance Department

Topics Arkansas