The Minnesota Commerce Department has charged a Texas-based insurance company and three of its agents with using false and misleading telemarketing practices to sell supplemental Medicare insurance to the state’s senior citizens.
The allegations against United American Insurance Co., McKinney, TX, and the operators of its now-closed West St. Paul and Duluth offices, were contained in a complaint the department filed with the Office of Administrative Hearings (OAH) in Minneapolis, for a hearing this fall.
If found guilty of all charges, the 55-year-old insurance company faces stiff civil penalties and could lose its license to sell insurance in the state. United American currently is licensed to sell insurance in 49 states, the District of Columbia and Canada.
In its complaint, the Commerce Department alleges that United American’s agents and telemarketers misrepresented themselves by saying they were calling on behalf of United American Health Services, the National Information Center, the Information Service Center or an unnamed federal agency or senior services organization.
The telemarketers–told to sound like they were offering helpful information packets about Medicare–pressured consumers for personal meetings, telling them that their insurance coverage might be in jeopardy unless they delivered the informational packets to them in person, the complaint continued.
The complaint also alleged that sometimes consumers were told by United American’s agents that they would gain the advantage of automatic claims filing if they paid a higher premium for supplemental Medicare insurance.
Minnesota law requires all supplemental Medicare policies to include provisions for automatic claims filing.
At the same time,0 the department forwarded a copy of its complaint to the county attorney in St. Louis County, where United American’s main Minnesota office was located, for review and the filing of possible criminal charges against the company and its employees.
In a brief statement, United American officials denied the allegations, adding that the company will have its say at “the proper regulatory forum” or in the courts, if it must.
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