AIM Issued Cease and Desist in Utah

[Crabcake Johnny]

http://www.sltrib.com/business/ci_14692353


The Salt Lake Tribune

Updated: 03/17/2010 11:17:59 AM MDT



The Utah Insurance Department has issued an emergency cease-and-desist order against several out-of-state companies and individuals that the agency says is selling insurance without licenses.

Acting Insurance Commission Neal Gooch cited an "immediate and significant danger" to the public in taking the action.
Those cited were AIM Health Plans, Insurance Resource Group, Integrated Insurance Marketing, CEO Clubs Inc. and Viking Administrators, and Louis Deluca and Gary L. Karns Jr.

The order says that last July Deluca lost the underwriter for his policies but continued to sell AIM Health Plans through CEO Clubs, Viking Administrators, Insurance Resource Group, Integrated Insurance Marketing and Karns.

Deluca and others have continued to withdraw funds from residents accounts for premiums, the order says.
The order requires those cited to stop doing business in Utah but to pay any claims promptly on existing policies.

 

[YouGotMyMoney]

Nice.....

Yeah, I'm honestly surprised no one has put a hit on this guy yet, doesn't pay claims (of course) and doesn't pay commissions.

Can they stop someone from marketing insurance products permanently?

 

[Crabcake Johnny]

I've known about this company since 2004. If no one wants to listen that's their problem. By the way, in 2004 they were caught selling insurance without an underwriting carrier. It's now 2010 and read the article.

 

[Mark]

I warned you all about this after I got my letter months ago and I even gave you the lawyers info.

 

[YouGotMyMoney]

I warned you all about this after I got my letter months ago and I even gave you the lawyers info.

True you did and John warned us way before that.

I got a call from AIM yesterday, trying to offer a contract.

Guess they need that new business premium to pay the bills

 

[somarco]

Deals like this have been around for years. Sadly, the DOI is powerless in most situations to do anything and must wait on the AG to wade in on the case. By the time that happens, the folks running the scam have disappeared to some exotic island and spend their days sipping drinks with parasols delivered by scantily clad women.

A friend, a guy I have known for over 20 years, got involved in a scam. Took the feds only 3 years to catch on and close him down. His operation was a bit more obvious. Skimming premiums and never remitting to the carrier. Pretty stupid actually.

He lost everything and is now doing jail time.

When there is money by bagful around there will always be someone who thinks they can take more than their share and get away with it. I have seen it too many times and been very close to some of these operations.

It's real easy to spot. Kind of like the guy on the corner selling Rolex watches for $30.

I talked to Lou several years ago, checked him out with the DOI in GA. They knew nothing about his plan, said it would not be approved if submitted. A buddy in OH checked there and same thing.

Until there are complaints to the AG or feds, there is no action. By that time the damage is done. Many of the agents involved will be fined, lose their license and some may even do jail time.

 

[Crabcake Johnny]

Ditto. Years ago their were emphatic that the plans could be sold in MD.

First, they told me they didn't actually need to be filed in MD. Wrong, this was not a discount plan, but insurance so it needed to be filed.

Then they tol me it's been approved for sale in MD. I called my DOI contact - nothing. Then AIM said "check under this name." (From 1 day "it doesn't have to be filed" to the very next day "it's approved for sale" is a pretty fast approval.)

We went through 3 different company names and the DOI has no record of any plans filed.

I started smelling a rat so I contacted someone I knew at Chesapeake - the carrier AIM claimed was underwriting their plan. An attorney from Chesapeake called me back later that day, wanted to know WHERE I got that brochure with their logo on it.

A few days later Chesapeake's information was off the AIM brochure - replaced by the name of another carrier.

And here we are in 2010.

And Somarco's right - the wheels turn slowly...but they turn.

 

[moonlightandmargaritas]

I started smelling a rat so I contacted someone I knew at Chesapeake - the carrier AIM claimed was underwriting their plan. An attorney from Chesapeake called me back later that day, wanted to know WHERE I got that brochure with their logo on it.

Similar experience in Florida in 2006. It started with a thread on this forum.

Lou Deluca told me that the insuring carrier was something called American Health and Life of NY. I called them, and spoke to their in-house counsel - who knew nothing of it - or him - and told me emphatically it was not approved for sale in Florida through them.

 

[Crabcake Johnny]

I called one of the carriers they claimed was underwriting the plans and they informed me that they only underwrote the accident plan - not the health insurance. When I called AIM back to ask which carrier underwrote the health insurance they referenced the same carrier.

I said "...just got off the phone with them and they only write the accident portion of the plan." I got a "leave your name and number and we'll get back to you."

For AIM agents today reading all of this and possibly getting conflicting information from AIM - you have two calls to make today:

1) Call the underwriting carrier and make sure they're actually underwriting AIM's mini-med, not just the accident portion of the plan.

2) Call you state's DOI and ask of the AIM plans have been filed and approved.

 

[somarco]

3) Call your attorney and ask if they can get you a lighter sentence if you plead stupidity.