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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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