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Office of Insurance Warns Consumers About
Group Health Insurance Scam
Purported trade organization
claims to offer health insurance to members
10/2/06, Frankfort, KY – At least seven
Kentuckians are among more than 300 consumers nationwide who
have been solicited in a scam involving the promise of group
health insurance, according to an ongoing investigation by
the Kentucky Office of Insurance (KOI).
The solicitors, operating under the name National
Trade Business Alliance of America (NTBAA) and agent Professional
Business Consultants (PBC) Direct, claim to offer an affordable
group health plan through a number of widely recognized insurers.
NTBAA and PBC Direct have no affiliation with the insurers
and its "agents" are not licensed in Kentucky.
Consumers being solicited are asked to pay
a one-time application fee of $136 and a monthly premium that
ranges from $134 for an individual to $207 for a family.
"These consumers have paid money for a
bogus product. They do not have health insurance coverage,"
said Julie Mix McPeak, executive director of KOI.
McPeak said KOI is trying to gauge the extent
of the scam. KOI and insurance regulators in other states
were alerted by an insurance company that identified 300 solicited
consumers, seven of whom were Kentuckians.
The insurer notified KOI that it denied an
application from NTBAA for a group plan but later discovered
that NTBAA and PBC Direct were advertising the insurer's products
through printed materials and a Web site.
"These scam artists are getting more sophisticated,"
said McPeak. "It becomes even more important for consumers
to be alert and to verify that the company and any individuals
involved in an insurance transaction are properly licensed
and authorized to do business in Kentucky. Consumers also
should be suspicious of extremely low premiums."
Consumers who have been contacted by someone
working on behalf of NTBAA or PBC Direct should call 1-800-595-6053
and ask for Scott Moseley in the Consumer Protection and Education
division.
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