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State Officials Warn Of Health Insurance Company Selling Bogus Policies

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SPRINGFIELD, Ill. (CBS) — Going without health insurance is unfortunate, but paying for a bogus policy can be worse.

As WBBM Newsradio’s Dave Dahl reports, the State of Illinois has put out a cease and desist order in an effort to try to stop the company ReAssurance.

LISTEN: WBBM Newsradio’s Dave Dahl reports


“The company has sold numerous fraudulent health insurance policies to consumers in Illinois, Indiana, Ohio and Wisconsin, and the department is encouraging any consumers who have a policy issued by ReAssurance to immediately seek legitimate health insurance coverage,” said Alka Nayyar of the Illinois Department of Insurance.

Nayyar says about 50 Illinoisans have bought the bogus policies, but the state wants to know if any more victims are out there.

She says among the things people considering an insurance purchase should be wary of include unsolicited offers; exaggerated phrases such as “special offer” and “affordable health coverage;” and evasive answers.

Nayyar says all insurance companies and agents must be registered with the Department of Insurance.

Anyone who believes he or she is a victim of fraud is asked to contact the department at (877) 527-9431, or visit the department office at the Thompson Center, 100 W. Randolph St., 9th floor.

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