State orders firm to stop selling insurance

HERALD STAFF REPORT
Miami Herald
4-30-02

State regulators have ordered a Texas company to step selling unlicensed health insurance plans to Floridians.

According to Florida Treasurer and Insurance Commissioner Tom Gallagher, the Fort Worth company, American Benefit Plans, has operated in Florida under more than a dozen organization names. Some 13,000 Floridians are believed to have bought these unlicensed plans, the Department of Insurance said.

In its order, the department said the company and its affiliates improperly claimed a federal exemption from state licensure by operating under various associations. Among the products sold were UltraMedChoice Health Plan and UEVEBA. An attorney for American Benefit did not return telephone calls placed Monday afternoon.

Earlier this month, Gallagher launched a media campaign warning employers and individuals to stay away from buying insurance from unlicensed entities.