Insurance Chief Cracks Down on Companies

The state's insurance boss has told three companies to stop trying to do business in Connecticut because they are unlicensed.

State Insurance Commissioner Thomas B. Leonardi on Friday issued a cease and desist order against three out-of-state companies he says have been marketing health insurance products to Connecticut residents without a state license.

“This order serves notice to these companies - and any company that tries to skirt state regulations - that we will find you and hold you accountable,'' Leonardi said.  ''Consumers must have the protection of health care plans backed by licensed entities that are regulated and monitored closely by the state Insurance Department. That protection includes having covered claims paid by the insurer in a timely manner.”
 
The order has been issued against: North Carolina-based Metropolitan Business Alliance, LLC doing business as the National Association of Business Leadership;
New Jersey-based Hudson Valley Consultants, doing business as CEO Club Benefits; and Kevin Dunn, of Montville, N.J., NABL president and managing consultant of HVC.
 
Leonardi said the companies have been marketing over the Internet. They  have 30 days to provide a list of all Connecticut consumers who have enrolled in these unlicensed plans. The order states that the Insurance Department may also seek civil penalties.
 
“We have rigorous requirements for companies to market their plans in Connecticut and there are no exceptions, no shortcuts. Health insurers must be licensed by the department before they can take a dime from consumers,” Leonardi said. “If consumers have any question whether the company they are doing business with is licensed, we urge them to check our Web site or call our Consumer Affairs unit.

The Web link to the license catalog is http://www.catalog.state.ct.us/cid/CLIC/VerifyLicense.aspx.
 
The order requires the companies to immediately stop any business practices.
 
The companies have the right to a hearing before the department and have 30 days to request a hearing before the commissioner. If no hearing is requested, the facts and findings of the order will be deemed final.

Leonardi's order comes right after a consumer alert he issued this week that identifies several unlicensed or unauthorized entities that have been known to market health insurance, limited medical plans or medical discount cards through Web sites, by phone, e-mail and by fax.
 
The companies involved in the alert are:

• Metropolitan Business Alliance LLC

• United States Contractors Association.

• United States Contractors Trust.

• Viking Administrators, LLC.

• Association of Independent Managers.

• Integrated Insurance Marketing, Inc.

• AIM Health Plans, Inc.

• Insurance Resource Group.

• Venture Support Group, LLC.

• Southeast Insurance Advisors, LLC.

• Wilshire Holding, LLC.

• World Wide Family Benefits Association Inc.