State fines unlicensed firms selling health insurance

By Bruce Japsen
Posted Sep. 29, 2010 at 2:32 p.m.

The Illinois Department of Insurance said it has taken steps to prohibit several companies from “marketing and selling non-comprehensive health insurance” in the state without a license.

The department said it entered an order prohibiting Vahalla, N.Y.-based AIM Health Plans, Inc., New York-based CEO Clubs, Inc., Vahalla-based Insurance Resource Group Inc. and  Integrated Insurance Marketing, Inc. of New Canaan, Conn., Inc.. as well as executives Gary L. Karns, Jr. and Louis R. De Luca, both from  Akron, Ohio, from transacting an unauthorized insurance business in Illinois.

The companies’ “activities have been the subject of numerous complaints” the department said. The department said more than 500 policies were sold by these companies.

On June 28, the department said it issued a cease-and-desist order and notice of hearing about the matter. An administrative hearing was held Aug. 5 and the companies nor their representatives appeared.

The companies could not be reached this morning by the Tribune for comment. The insurance department said all parties, which were fined $25,000 each, can appeal Insurance Director Michael McRaith’s order to the Illinois State Circuit Courts.

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One comment:

  1. JOHN C Sep. 29, 2010 at 2:56 pm

    What about the agents who sell the junk?