Maryland insurance regulators have ordered American Trade Association and its subsidiaries to stop selling what they called bogus health insurance, according to an administrative order.

Beth Sammis

The Maryland Insurance Administration said it believes about 700 Maryland residents “fell prey to the scams” of the companies, according to a statement.

The order issued by Maryland’s acting Insurance Commissioner Beth Sammis is the latest in a series of regulatory actions taken against ATA, Smart Data Solutions and Serve America Assurance Ltd. by states.

Recently, the companies were found by a Tennessee court in a liquidation proceeding to have owed $7 million in medical claims, but had $2.1 million assets.

In Maine, the companies were ordered to pay $1.2 million civil penalties in Maine, and is the subject of other cease and desist orders issued over its selling of unlicensed products, using unlicensed agents and failing to pay medical bills.

The Maryland Insurance Administration said state residents harmed by the companies may file a reimbursement claim by Aug. 31 at www.americantradeliquidation.com under the liquidation proceedings in Tennessee. Affected consumers should also contact the MIA at 410-468-2200 (toll free 800-492-6116 ext. 2200) or email enforcement[at]mdinsurance[dot]state[dot]md[dot]us, the MIA said.