State insurance regulators have ordered a Nevada insurance company to stop selling health policies and collecting premiums in Texas, after learning that the company had not been paying medical claims.
According to a report in The Fort Worth Star-Telegram, The Texas Department of Insurance filed the emergency cease-and-desist order Oct. 5 against Employers Mutual of Carson City; William R. Kokott and Nicholas E. Angelos, who are affiliated with the company; and 18 associated entities.
The company had been sought by the Insurance Department last month, when regulators announced that they were seeking at least $1 million in fines against Employers Mutual and 18 other organizations allegedly involved in an illegal health insurance scheme.
The state estimates that 4,600 Texans are participants in the Employers Mutual health plan. Regulators say Employers Mutual never received a state license or any other form of authorization to issue health insurance in Texas.
State insurance regulators in Colorado, Florida, Nevada and Oklahoma are also taking action against the company.
In September, regulators said Employers Mutual and several other organizations held at least two seminars this year to recruit licensed agents to sell health insurance policies on behalf of companies that are not licensed to operate in Texas.
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