Arkansas’ insurance commissioner says a claim by a company saying it is offering innovative and affordable health insurance solutions “could not be further from the truth.”
Jay Bradford
On Feb. 24, the head of the Arkansas Insurance Department, Jay Bradford, issued a suspension order for Cinergy Health Inc., based in Florida, pending the outcome of an administrative hearing March 11.
Bradford cited “the public health, safety and welfare” of Arkansas’ residents as a key reason for suspending the non-resident business entity producer’s license of Cinergy.
Regarding Cinergy’s claim on its website – which is no longer active – as a nationwide provider of low-prices, high quality insurance products, Bradford disagreed.
“This statement could not be further from the truth,” he said in a statement.
This is not the first such regulatory action for Cinergy. Last year, New York regulators fined American Medical and Life Insurance Co. (AMLI) $700,000 for various violations of state law, including the use of its intermediary, Cinergy, to create the misleading impression that its limited benefit plan offered major medical or comprehensive coverage, according to officials.
AMLI was prohibited from selling its limited benefit products in New York and also forced to pull its nationwide television commercial, which state officials said was its main marketing tool.
The Florida Department of Financial Services also investigated Cinergy, resulting in a complaint alleging that the company produced and marketed television ads for limited health insurance plans underwritten by AMLI. The Florida complaint said that AMLI told Cinergy in August 2009 to immediately cease selling any of its products and to terminate any advertising related to ALMI products, according to officials.
Like New York, Florida regulators found that the ads used by Cinergy contained false and misleading information regarding health coverage to be provided.
“We do not currently know if any Arkansas insurance consumers have purchased any products from the company,” Bradford said.
Arkansas regulator says company marketing fraudulent insurance plans via IFAwebnews.com .
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