The Illinois Department of Insurance has entered an order prohibiting AIM Health Plans Inc., CEO Clubs Inc. (a/k/a Chief Executive Officers Club), Insurance Resource Group Inc., Integrated Insurance Marketing Inc., Gary L. Karns, Jr. and Louis R. De Luca (“Respondents”) from transacting an unauthorized insurance business in Illinois. Each respondent was also fined $25,000.
The respondents are accused of marketing and selling non-comprehensive health insurance products in Illinois without a license. These activities have been the subject of numerous consumer complaints received by the department. Similar actions have been brought against AIM Health Plans Inc. and CEO Clubs in at least seven other states.
On June 28, 2010, the Illinois Department of Insurance issued a Cease-and-Desist Order and Notice of Hearing against the respondents. An administrative hearing was conducted on the allegations on August 5, 2010, at which time the respondents failed to appear.
The department estimates that more than 500 policies may have been issued to Illinois residents by these respondents and reminds consumers to deal only with licensed insurers and agents.
The department advises consumers who purchased an unauthorized plan to cease making premium payments and to notify relevant bank and credit card companies to prevent additional premium withdrawals from occurring. Consumers should seek to replace coverage purchased through the unlicensed entities or agents as soon as possible.
All parties have the right to appeal the Director’s Order in this matter to the Illinois Circuit Courts.
Source: Illinois Department of Insurance
Topics Illinois
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