State: Company sells fraudulent health insurance policies

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Updated: January 10, 2012 11:28AM

An unauthorized insurer operating under the name ReAssurance has sold numerous fraudulent health insurance policies to consumers in Illinois, Indiana, Ohio, and Wisconsin, state officials warned Wednesday.

Anyone who has policy issued by ReAssurance Health Inc., ReAssurance Health Insurance, or ReAssurance Health Insurance Group should immediately seek legitimate health insurance coverage, a release from the state Department of Insurance said.

The department has issued a Cease and Desist Order prohibiting ReAssurance from issuing any more policies, the release said. It is also pursuing legal and regulatory action to help identify and contact all affected consumers and determine what assets may be available to pay claims they may have incurred.

A health insurance policy may not be sold in Illinois unless the company is licensed and the policy approved by the department, the release said. Neither ReAssurance nor its policies have been approved in Illinois.

Insurance professionals are available at the department to answer questions and help affected consumers, the release said. Anyone who believes they have purchased a policy from ReAssurance should call (877) 527-9431 or visit the office on the 9th floor of the Thompson Center.

The Department also offers advice on dealing with offers of health insurance:

— Ask if the company is registered and the plan approved.

— Beware of misleading or exaggerated promises. Look out for phrases such as “special offer,” “limited enrollment,” “guaranteed benefits,” or “affordable health coverage.”

— Ask questions. Find out exactly what coverage is offered. Ask for written information regarding what health care providers are included and make sure your doctor, hospital or pharmacy is included. Call your provider to make sure they are participating in the plan.

— Be wary of unsolicited inquiries or offers. Avoid dealing with a salesperson if he or she seems evasive, ill-informed, or reluctant to send you detailed information until after you sign up.