'Bogus' insurer's assets to be sold

By DORIS CHANDLER
Gainesville Sun business editor
5-10-02

About 6,000 Floridians bought health insurance from an unlicensed company that now is in receivership, and they have been left with an estimated $2.5 million in unpaid claims.

NAPT was the acronym for numerous "associations" through which David Weinstein of Philadelphia sold "phony health insurance" to Floridians, possibly starting back in 1999, according to the Florida Department of Insurance. The agency shut down Weinstein's operation in March 2001, and the company now is in receivership - its assets to be sold.

However, Weinstein appealed the DOI order, which was upheld within the past week by the First District Court of Appeal. Weinstein has 30 days in which to appeal the district court ruling.

"This company manipulated its initials into various bogus insurance company names," said DOI spokeswoman Nina Bottcher. "They did pay claims for awhile, but it doesn't appear they had any reserves. They were operating as kind of a Ponzi scheme, using today's income to pay today's claims. Eventually they ran out of money."

The company operated under the following names: NAPT; N.A.P.T.; National Association of Physical Therapists; National Association of Professionals & Technicians; National Association of Professional Technical; National Association of Professional Truckers; National Association of Professional Traders; National Association of Chiropractic Professionals; National Association of Dental Professionals (Dental Division); National Tourism & Hospitality Association (Division); National Veterinarian Association; and National Real Estate Association (Division).

Once NAPT's assets are sold, it is expected that claims will get paid in part, based on the amount of money available, according to Florida Treasurer and Insurance Commissioner Tom Gallagher. If a health care provider files a claim through the receiver, the policyholder is released from further responsibility to pay, Gallagher said. For more information on filing a claim, call the DOI toll-free at (800) 342-2762.