Florida Insurance Commissioner Kevin McCarty cited American Medical and Life Insurance Co. (AMLI), based in New York, with five counts of illegal conduct. It must respond within 21 days or face revocation of its license to operate in the state, according to the Miami Herald.
McCarty's office investigators concluded that AMLI:
- misrepresented to consumers the benefits and terms of the insurance policies that it underwrites;
- used un-appointed agents;
- failed to exercise appropriate oversight of the activities of its managing general agent, which issues its policies;
- failed to provide records to the Office in a timely manner; and
- used an unlicensed third party administrator to handle claims.
AMLI was fined $700,000 in New York last year for failing to pay members' hospital bills. The company promotes itself by promising to offer members "peace of mind" for just $5 a day and promising coverage regardless of any pre-existing conditions, according to the Insurance and Financial Advisor.
To learn more:
- read the Miami Herald article
- see the Insurance and Financial Advisor story
- check out the Florida Insurance Commissioner press release