State Bars 3 insurers in Bogus Health Plan

The Indiana Department of Insurance has banned three insurance companies from doing business in Indiana.

Smart Data Solutions and American Trade Association LLC, both of Tennessee, and Serve America Assurance, a company allegedly based in Bermuda, were told to immediately stop engaging in insurance business transactions.

Indiana Insurance Commissioner Carol Cutter said Tuesday the companies have used a method referred to as "fax blasting" to advertise a health insurance plan called "Healthcare America."

The plan has been the subject of complaints filed with the Indiana Department of Insurance, the attorney general's office, and insurance and attorney general offices in several other states.

The complaints have been about billing problems, poor customer service and, in some cases, the failure of the plan to pay claims, she said.

"These companies are offering 'health benefits' to Indiana consumers from a foreign company whose very existence has yet to be verified," she said.

Attempts to reach the companies were unsuccessful.

Indiana consumers are asked to contact the Indiana Department of Insurance before purchasing any health plan that advertises solely through fax-machine transmissions.

A searchable database of companies authorized to transact insurance business in the state is available at www.in.gov/idoi/2368.htm.

Or call the state Insurance Department's consumer services division at (317) 232-2395 for further assistance.

Call Star reporter Tom Spalding at (317) 444-6202.