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Life Health > Health Insurance > Your Practice

Florida Acts Against 3 Health Insurance Firms

By Staff Writer

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Florida Insurance Commissioner Kevin McCarty says he has ordered 3 brokers to stop selling health insurance policies in the state.

McCarty announced that he has issued orders to Peck & Peck Inc., Green Cross Managed Health and Depawix Health Resources Inc. to immediately stop “the unauthorized marketing and selling of health insurance” in the state.

According to a release, the Florida Office of Insurance Regulation began investigating the 3 companies earlier this year and found that they were selling group and individual health insurance plans to small businesses and individuals, both directly and through licensed and unlicensed insurance agents, under the pretext they were offering an employment opportunity that provides medical benefits.

Groups and individuals who wanted to participate in the Green Cross program were required to be “dually employed” by Depawix, in addition to any existing employment they may have with a Florida business, according to the OIR.

Under the OIR’s order, the companies had 10 days after it issued the order Aug. 27 to provide the office with copies of all policies issued to residents of Florida. The order also requires the companies to honor all valid claims on any policies they had executed.

The OIR says its investigation parallels a similar probe by the Florida Department of Financial Services’ Division of Agent and Agency Services. Florida’s Chief Financial Officer Alex Sink also has issued an order against the brokers, the OIR said.

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