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Class Action Alleges Giant Insurance Scam

MARSHALL, TEXAS (CN) - Continental General Insurance runs a nationwide insurance scam through its disguised marketer, Consumers Health Awareness Association, a class-action complaint claims in Federal Court. Plaintiffs say CGI and CHAA falsely claim to be unaffiliated, falsely claim to sell "group policy" insurance but do not inform policyholders what the policy is, and that CGI does this "to avoid state insurance regulations," to collect extra fees, to manipulate benefits, and to hide its fees when seeking rate increases. They also sue CGI's and CHAA's agent, Gary McDonald. See complaint.

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