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Fake Health Insurance Company Shut Down After 123 Citizens Victimized

2/7/08 - RALEIGH— Insurance Department officials late last week issued a Cease and Desist order against the National Trade Business Alliance of America, an organization that marketed health insurance plans to businesses and individuals across North Carolina. Never licensed by the Department to provide insurance, any and all plans sold by this company were fraudulent, and as is so typical for this type of fraud, many “policyholders” found themselves with unpaid claims and stolen premiums.

NTBAA is headquartered in Turnersville, N.J., and has operated under various names, including National Alliance of Associations and Affinity Health Plans of America.

“North Carolina is the latest state to be victimized by this so-called insurance company which has offered bogus health plans to unsuspecting citizens across the country,” said Insurance Commissioner Jim Long. “Marketed through blast faxes and telemarketing, this group preyed on those who were searching for low-cost health insurance. They left at least 123 North Carolinians out more than $20,000. Fortunately, we caught on to their scheme and have run them out of North Carolina before anyone else gets hurt.”

Through the Department’s Consumer Services Division, the Unauthorized Entities Unit works specifically to identify and go after companies selling insurance that is not licensed or authorized in this state. To date, more than 18 companies have been shut down that have defrauded citizens out of more than $1 million. The National Trade Business Alliance case was identified through a consumer complaint.

“Consumer tips are vital to this Department finding and prosecuting these rogue companies,” Long said. But more importantly is the service the Department can provide to individuals considering the purchase of any kind of insurance plan. “Especially if you get offers via email, fax or some kind of telemarketing — whether it’s health insurance, auto, whatever — do not buy until you call our office,” Long urges.

Some tips for protecting yourself against fake insurers:

• If it sounds too good to be true, it probably isn’t. If you get offers for super-low insurance rates that don’t come close to other quotes you’ve received, beware.
• Perk up around sleazy marketing tactics. Legitimate insurance companies rarely use blast faxes, aggressive emails or telemarketers to cold-sell their products.
• And most importantly — NEVER sign up before calling your Department of Insurance! The NCDOI can quickly tell you whether a company is properly licensed and can clue you in on any pattern of concerns or complaints. Call 1-800-546-5664 toll free within North Carolina, Monday through Friday, 8 a.m. to 5 p.m.

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