back to Press Room

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

###