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to Press Room
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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