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Kansas Insurance Commissioner Sandy Praeger
Issues Cease and Desist Order
7/7/07 - Topeka, KS - Insurance Commissioner
Sandy Praeger has issued a cease and desist order against
a company engaged in the unauthorized sale of insurance in
the state of Kansas. The Tennessee based non-profit corporation,
National Foundation of America (NFOA), was purportedly responsible
for the advertising and issuance of tax-deductible annuities
without submitting to the examination of the Insurance Commissioner.
State law requires that all companies wishing to engage in
the business of insurance in Kansas submit to the examination
of the Insurance Commissioner for the purposes of determining
the organization and solvency of the company.
Commissioner Praeger issued the order on Tuesday that instructs
NFOA to cease all insurance business in the state of Kansas.
To date, Kansas residents have purchased over $300,000 worth
of products from NFOA. Local authorities in Tennessee have
seized all of NFOA’s assets but the investigation of
NFOA operations is ongoing, and additional action against
the company is possible.
If Kansas residents
have purchased policies from the NFOA or if they are solicited
by anyone attempting to sell insurance products or securities
from NFOA they should immediately contact the Kansas Insurance
Department Consumer Hotline at 1-800-432-2484
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