After getting wind of unauthorized sale of health insurance products to approximately 2,500 Floridians, Florida Insurance Commissioner Kevin McCarty has ordered seven companies and some of those companies’ officers to stop selling health insurance in the state.

The Office initiated an investigation after receiving numerous complaints about "fax blasts" or unsolicited faxes; these faxes advertised inexpensive health insurance coverage. According to some Florida residents who received these faxes and responded, the policies issued were not for major medical insurance as represented. Instead, the policies were for unauthorized limited benefit plans, according to the Florida Office of Insurance Regulation.

The Order notifies the companies and their officers that the Florida Insurance Commissioner Office will issue a Final Order to Cease and Desist from engaging in the unauthorized transaction of insurance in Florida. These entities include:

• Beema-Pakistan Company Ltd., Pakistan
• Serve America Assurance Ltd., Blythewood, S.C.
• Real Benefits Association, New York
• Affinity Group Benefits Association Inc., Springfield, Tenn. 
• American Trade Association Inc., Springfield, Tenn.
• Smart Data Solutions LLC, Springfield, Tenn.
• SDS Management Group, Springfield, Tenn.


      Individuals were also named in the announcement:
      • William Worthy II, president of Serve America Assurance
      • David Clark, chairman and president of Real Benefits Association
      • Bart Posey, Richard Bachman and Obed Kirkpatrick, all affiliated with the American Trade Association, Smart Data and SDS Management Group

          "This order today should send a message to those considering the unauthorized marketing of health insurance products in our state,” McCarty says. "The Office will vigorously prosecute anyone perpetrating fraud on Florida consumers and violating Florida’s insurance laws.”
          The companies and individuals have 21 days to challenge the Office’s action.


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