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Poolman Cracks Down on California Business - Issues Cease and Desist Order
December 30, 2005 701-328-2440

Bismarck, ND - North Dakota Insurance Commissioner Jim Poolman issued a Cease and Desist Order against American Life Healthcare, Inc., a San Diego, California based company. Poolman said that the company has advertised in North Dakota in violation of a new state law aimed at curbing abuses in the marketing of discount medical plans. 

This Cease and Desist Order is the second issued to enforce a statute that was passed in 2005. Poolman said, "This order represents my ongoing efforts to crack down on these types of plans. These plans mislead consumers into thinking that they are purchasing insurance. It's not insurance-it's not even close." Poolman's order alleges that American Life Healthcare's advertisement lacked the proper disclosures and was misleading.

Poolman said "Some of these discount medical plans won't even provide their list of participating providers until the consumer signs up and pays money." Consumers who realize their mistake and quickly try and cancel their membership often have difficulty getting their money back. Poolman added, "The Insurance Department stands ready to help these consumers get the refunds they are entitled to."

Poolman has compiled a list of tips to help consumers decide whether or not to purchase a medical discount plan. Please visit the document called "Consumer Tips~Discount Plans" at the Insurance Department website's homepage, http://www.state.nd.us/ndins/default.asp. Consumers may also call the Insurance Department's Consumer Hotline at 1.800.247.0560 for the same helpful information. 

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Read the Consumer Tips

Read the Cease and Desist Order

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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