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Unlicensed Insurer Ordered to Cease Activities
8/7/07, CARSON CITY, NEVADA - Nevada Insurance
Commissioner Alice A. Molasky-Arman ordered Florida-based
Christian Care Medi-Share and principals Edward John Reinhold
and Robert Baldwin to cease transacting insurance in Nevada.
Christian Care Medi-Share (or Medi-Share) is a division of
Christian Care Ministries, Inc. and an affiliate of American
Evangelistic Association International, Inc. Christian Care
Medi-Share is not licensed by the Division of Insurance as
an insurer in Nevada and is soliciting and selling unauthorized
and unapproved products. Several states across the nation
have taken regulatory action against this entity.
Nevada residents who have purchased policies
or are approached by someone trying to sell an insurance plan
by this entity should immediately call Ben Gillard at the
Division of Insurance by dialing (775) 687-4270 in Carson
City or by calling toll-free anywhere else in Nevada by dialing
(800) 992-0900, Carson City extension 4270, or by e-mail at
insinfo@doi.state.nv.us.
Medi-Share claims it is not insurance but a
“sharing” program because its members share their
medical expenses with each other. It publishes a disclaimer
on its Web site that payment of medical bills is not guaranteed.
The Division enforcement investigators disagree and point
out that it’s the nature of the product -- not the name
-- that determines whether it is insurance. Chief Insurance
Investigator Ben Gillard said, “If it walks like a duck,
talks like a duck, it must be a duck. The plan has the same
characteristics of an insurance product, regardless of what
terms are used, so it must be insurance.”
Consumers who purchase insurance from an unlicensed
entity believe they have insurance when, in fact, they have
no insurance at all. Unlike legitimate companies, consumers
may not receive mandated benefits, there is no guarantee claims
will be paid, nor is there a safety net in case the unlicensed
entity becomes bankrupt. This can leave consumers responsible
to pay their own medical bills even though they paid their
insurance premiums, or in the case of Christian Care Medi-Share,
their monthly “shares” in good faith.
Christian Care Medi-Care, claiming to have
over 50,000 members nationwide, is based on Biblical belief
that Christians should take care of each other’s needs.
Persons who participate in the program agree to faithfully
pay their share amount each month to take care of their share
of the eligible medical expenses of other members. Non-Christians
are not eligible to participate in the program, nor are Christians
with pre-existing conditions.
In order to avoid an insurance scam or fraudulent insurer,
consumers should Stop, Call, and Check before writing the
check to buy any insurance policy. Consumers can learn whether
a company is licensed to sell insurance in Nevada by calling
toll-free in Nevada by calling (888) 467-4195 or by logging
on to www.nvinsurancealert.com.
By taking these simple steps to confirm whether
an insurer is legitimate, consumers can avoid the potential
loss of thousands of dollars, which can result from purchasing
bogus insurance.
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