4 Companies Told to Stop Selling Insurance Products in Kansas

February 16, 2010

Kansas Commissioner of Insurance Sandy Praeger has issued a cease and desist order to four companies and four individuals for selling unauthorized health insurance and distributing deceptive advertising.

The Kansas Insurance Department identified the companies as: Real Benefits Association, Serve America Assurance LTD, American Trade Association LTD and Smart Data Solutions LLC. All are headquartered in other states.

The department said Serve America Assurance, American Trade Association and Smart Data Solutions have been the subject of consumer protection orders, warnings and fines in other states, including Oklahoma, North Carolina, Indiana, Connecticut, Arkansas and Michigan.

Also under the cease and desist order are individuals Bart Posey, Richard H. Bachman, John Miller and Dave Clark. All live outside Kansas, and all are officers with one or more of the banned companies.

Praeger said consumer complaints led to the investigation and subsequent C&D order.

The sales of the insurance products in question occurred through Internet and fax solicitations.

One of the fax solicitations offered “complete health care plans” but did not list an insurance agency, agent or company, only a phone number. Real Benefits Association was also cited for statute violations regarding prompt claims payments for two Kansans who were RBA members.

Source: Kansas Insurance Department, www.ksinsurance.org.

Topics Kansas

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