As of August, the Federal Trade Commission (FTC) and law enforcement in 24 states had filed 54 lawsuits and regulatory actions to crackdown on the fraudulent marketing of "medical discount plans" as health insurance. This crackdown has now reached a local level.
The Minnesota Department of Commerce recently issued a consent order and levied a $100,000 fine against New York-based National Union Fire Insurance Co. of Pittsburgh, PA (NUFIC) for allegedly using deceptive advertising to sell unapproved insurance policies to Minnesota consumers. The company is an American International Group Inc. subsidiary, according to A.M. Best. This action comes on the heels of news last month that the FTC had brought law suits against three companies that sold questionable health discount plans.
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