NU Online News Service, March 11, 1:09 p.m. – A Texas district judge has ordered American Benefit Plans, North Richland Hills, Texas, to stop selling health care coverage to employers because it does not have the required Texas insurance license, according to the Texas Department of Insurance.
State District Court Judge Darlene Byrne of Austin last week issued a temporary restraining order against ABP and placed the company in temporary receivership, or a state of liquidation.
The Texas insurance department has contracted with Jack M. Webb and Associates Inc., Austin, Texas, to act as receiver in this case. In this role, the company pays assets and claims associated with receivership.
Bob Loiseau, a certified insurance receiver acting as special deputy receiver in this case, says ABP had put together unauthorized insurance plans or illegal ERISA benefit plans around the country.
“There are 25,000 to 30,000 lives ?insured’ by ABP,” he says. “They are concentrated in Texas and Florida. We believe there are as many as 30 other states that have enrollees.”