Kansas has become the fourth state this year, and the latest state over the last couple of years, to order several Tennessee-based companies to stop selling its products to residents.

Sandy Praeger

Kansas Commissioner of Insurance Sandy Praeger recently issued a cease and desist order against American Trade Association, Smart Data Solutions, Real Benefits Association, Serve America Assurance and four of its executives for selling unauthorized health insurance and distributing deceptive advertising.

In a statement, Praeger said consumer complaints led to the order.

“These companies and persons were not authorized to sell any type of insurance product in the state,” she said. “Authorized companies have to follow our consumer protections. In these cases, the companies ignored our laws.”

In one complaint, a resident tried to cancel coverage through Smart Data Solutions and made “numerous calls” to the various numbers listed by the companies to obtain a refund of money withdrawn from his account. The consumer told regulators that when he called, he was informed that the person he spoke with before to enroll in the program was not there and that he should try another number or there was “some other reason” a refund could not be made.

As of the order date of Feb. 8, that consumer has not received a refund, according to the department.

Much like the cases filed recently in Missouri, Oklahoma and Washington state, the sales of insurance products in question came from fax solicitations and over the Internet, according to Kansas officials. One of the fax blasts offered “complete health care plans,” but listed no insurance agency, agent or company, just a phone number.

Kansas officials also cited Real Benefits Association for statute violations regarding prompt claims payments for two Kansans who were its members.
Praeger’s order found that none of the companies, or their executives, are licensed to do business in Kansas.

The firms listed in the Kansas order have been the subject of cease and desist orders, fines and other regulatory action by numerous other states, including North Carolina, Connecticut and Michigan.