business
Tennessee attorney general sues "bogus" insurers
NEWS IN BRIEF — Posted April 12, 2010
A Nashville-area company that has been ordered to stop doing business in several states now faces a lawsuit from Tennessee Attorney General Bob Cooper's office.
Cooper filed a lawsuit in March against American Trade Assn., also known as Smart Data Solutions and Serve America Assurance, and against several individuals associated with the company.
"Their customers have been induced to purchase bogus health coverage, turning over millions of dollars of premiums, without any of the safeguards that the licensed carriers possess, and without the protections for solvency and consumer protection that accompany lawful insurance," the petition said.
The attorney general requested that the court order the company to shut down and liquidate its assets with the state's Dept. of Commerce as receiver. American Trade Assn. could not be reached for comment by this article's deadline.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/04/12/bibf0412.htm.