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Tuesday, June 25, 2024 | Back issues
Courthouse News Service Courthouse News Service

15 Firms Accused Of Insurance Abuses

SAN DIEGO (CN) - After an insurance marketer and the National Alliance of Associations fired Prostarr Satellite and 14 other groups apparently in a dispute over chargebacks, Prostarr interfered with the NAA's business relationship by sending out more than 2 million unauthorized faxes, trying to sell insurance without a license, and fraudulently obtain and submit banking data, the NAA claims in Superior Court.

Co-plaintiff with the NAA is Professional Benefit Consultants.

They claim the 15 defendant marketers "have been actively attempting to sell and resell insurance to NAA members, as well as to the general public, without maintaining the proper license and/or authority to do so. They have taken this action in an attempt to avoid paying approximately $500,000 in documented chargebacks and refund requests owed to Plaintiffs."

Plaintiffs claim, among other things, that the defendants "grossly misrepresented the products and services of the NAA ... fraudulently obtained bank information for the sole purpose of drafting NAA members' accounts ... (and) continue to contact active NAA members with the intention of interfering with the relationships between the members and NAA."

Also, "Defendant Paylogix has engaged in a pattern and practice of improperly electronically drafting the accounts and charging the credit cards of NAA members in order to effect the movement of active NAA members to other entities and/or insurers without authorization from Plaintiffs to do so," the suit states. "In so doing, Defendant Paylogix has also repeatedly disseminated banking data and other personal information belonging to NAA members to undisclosed third parties."

Here are the defendants: Prostarr Satellite, National Prestige Healthcare LLC, Access Healthcare Services LLC, U.S. Healthcare, Coast to Coast Marketing Group, Today's Choice Marketing, Claims and Benefit Management, American Life Healthcare, Paylogix, Critical Health Care Plus, America's Best Benefits, Nepo Group, Nationwide Benefits, Primary Medical, and the National Alliance of Benefits Services Association.

Plaintiffs demand punitive damages. They are represented by Harrison Patterson & O'Connor. See complaint.

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