Companies barred from selling policies alleged to be insurance

NEWS IN BRIEF — Posted Feb. 1, 2010

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Washington State Insurance Commissioner Mike Kreidler has issued cease-and-desist orders to five companies that were allegedly selling fake health insurance coverage.

The companies -- Serve America Assurance, Smart Data Solutions, American Trade Assn., Real Benefits Assn. and Beema-Pakistan Co. -- are accused of offering what they claim is health insurance for $199 per month for individuals and $369 per month for families. According to the order, none of the companies, which are apparently affiliated, are licensed or registered to sell health insurance in Washington.

The companies also were ordered to turn over a list of customers.

Serve America and Beema-Pakistan have been the subject of cease-and-desist orders from Arkansas, Connecticut, Indiana, Michigan and North Carolina. Oklahoma has fined American Trade Assn. $75,000 for violating a cease-and-desist order in that state.

The companies have denied any wrongdoing and said they are working to resolve any problems.

Note: This item originally appeared at

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