Louisiana Department of Insurance Fraud Section Investigators served American Trade Association, its 13 companion companies and 14 personnel with cease and desist orders on June 7, 2010, for selling unauthorized insurance in Louisiana.
Louisiana’s action follows regulatory moves against ATA in other states, including Tennesee, which in March moved to shut down operations of Springfield-based American Trade Association and Smart Data Solutions, accusing them of defrauding more than 12,000 consumers nationwide who sought affordable health insurance
The entities served with C&D orders are: American Trade Association Inc. (an Indiana corporation); American Trade Association Inc. (a Tennessee corporation); Smart Data Solutions LLC; Real Benefits Association; Serve America Assurance Ltd.; Beema-Pakistan Company Ltd.; Healthcare America; Integrated Health Plan Inc.; National Association of Business Leadership LLC and/or Inc.; Benefit Plan Administration Insurance Resource Group; CEO Clubs Inc. (and CEO Club Benefits); Star Group U.K. Ltd., aka Phoenix Insurance Company; and Association for Independent Managers (AIM Health Plans Inc.);
Individuals served with C&D orders are: Bart S. Posey; Angie Posey; Obed W. Kirkpatrick, Sr.; Linda Kirkpatrick; Richard H. Bachman; Kristy Wright; Colin J. Youell; David L. Clark; William M. Worthy, II; Ryan Adams; Tina Bennett; James Sean; Patrick Collins and Phillip Sylverin.
The department said all entities and individuals mentioned above must cease and desist from engaging in or transacting unauthorized insurance business, soliciting, offering, issuing, mailing or delivering any Louisiana resident a plan, policy, coverage, certificate, or any other contract which purports to provide insurance benefits or medical discounts for health benefits.
All entities and individuals issued a cease and desist order have 30 days of receipt of the C&D to furnish the LDI with a complete listing of all Louisiana residents and businesses that purchased any insurance or discount plan product from them and report to the department all premiums received in connection.
They are also ordered to notify any affected Louisiana customers of the C&D and issue an immediate refund of any monies or premiums held on behalf of the customers.
If any of those served fail to comply with the cease and desist order, further administrative action may be taken. If they continue to act in derogation of the laws of the state of Louisiana, they may be subject to an injunctive order and additional sanctions from the appropriate state district court.
Arkansas, Kansas, New Mexico and Oklahoma have all initiated actions against ATA and its affilitated companies.
Source: Louisiana Department of Insurance
Topics Louisiana
Was this article valuable?
Here are more articles you may enjoy.
Fannie and Freddie Hit Pause on Replacement-Value Requirements for Home Insurance 
Berkshire’s ‘Most Important’ Biz Drives Q1 Results; GEICO Still Behind on Tech 
Insurer Chubb Readies $350M Payout Tied to Baltimore Bridge Collapse 
Progressive Set to ‘Maximize’ Growth, Building on Q1 
