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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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