Bogus Health Insurance Company Scams Oregonians
After an estimated 400 Oregonians purchased bogus health insurance plans from American Trade Association Inc, the Oregon Insurance Division ordered the
fraudulent company to stop selling insurance in the state. Oregonians who bought these fraudulent plans have until August 31 to file any unpaid claims
with the Tennessee-based liquidator who is shutting down the scam operation.
At least eight other states have issued similar orders. Nationally, the companies collected at least $14.4 million in premiums from 12,400 policyholders in 2009 and early 2010.
Tennessee regulators shut down the companies in May and canceled all policies, saying the firms were never licensed to sell insurance. A court in that state found the company violated insurance laws, acted dishonestly and posed a significant hazard to the public.
ATA sold bogus health insurance policies underwritten by Serve America, a company that appears to have never existed, Tennessee officials allege. ATA owners Bart S. Posey Sr. and Angie Posie used $2.6 million of the money for themselves, buying property, automobiles and a $138,000 suite and ticket package to University of Alabama football games, according to a court complaint by Tennessee Commissioner of Commerce and Insurance.
These fraudulent companies usually present themselves as affordable options for working families. If consumers are unsure about a companies’ legitimacy they can contact the Oregon insurance division by calling 1888-877-4894. Read the full story from the Oregonian.
Oregon Consumer Protection Laws
The Unlawful Trade Practices Act protects Oregonians when buying real estate, goods or services and healthcare. It limits sellers from taking advantage from their customers in many different ways but most relate to prohibiting deception or misrepresentation by the seller. The Oregon State Bar has collected a list of the most common violations (reposted here).
