State regulators pull plug on allegedly unlicensed health insurer, order refunds

TALLAHASSEE — The Florida Office of Insurance Regulation Wednesday has ordered four unlicensed health insurers to stop doing business in the state after getting complaints from consumers that the firms were not paying plaims.

The firms are: Affinity Health Plans; National Alliance Healthcare; the National Trade Business Alliance Association; and the National Alliance of Associations. The order extends to all of their agents and other related entities.

The order requires Affinity and NAH to pay all outstanding claims and refund all money collected from Florida consumers within 10 days.

"This kind of unethical business practice will not be tolerated, so I am stopping it," Insurance Commissioner Kevin McCarty said. "There are far too many people in Florida and across the country living without health insurance today, so consumers should not have to also try to sort through scams like this when attempting to buy health insurance."

According to the order, the companies have sold policies to 790 Florida residents since July 2006. They have failed to pay at least $100,000 in claims.

One case involved a woman who bought coverage after receiving an unsolicited fax. She submitted claims when her husband had a heart attack, but the claims went unpaid.

Other complained that they had paid premiums but never received any information about their coverage. They requested refunds, which were never made.

According to the order, two company officers, James Doyle and Christopher Ashiotes, recently have been convicted of insurance-related felonies in Texas.