The hole-in-one story was pretty interesting, but this next story will almost scare you.
Seems that the Oregon Insurance Division is dealing with yet another illegal (can you say scam?) situation involving a company selling insurance without a certificate of authority in Oregon. This one elevates the meaning of the phrase “there’s a sucker born everyday” to a new level. Check out this one…
The DCBS is advising consumers not to do business with a Washington organization that is illegally selling insurance in Oregon. The Global Healings Society (website domain registration expired in January, 2012...surprise) of Puyallup, Washington describes itself as a private ministry. It uses the internet to sell memberships in five cooperatives that purport to provide an alternative to traditional insurance coverage. In May of 2005, the Insurance Division ordered the group to stop selling memberships to Oregon residents without being authorized in Oregon as an insurance company. However, the division has recently learned that several Oregonians had purchased memberships as an alternative to mandated auto insurance.
Purchasing a membership from Global Healings in place of insurance may have serious consequences, according to state regulators. An Oregon member who was involved in an auto accident in 2004 found that he had to pay for damages when Global Healings failed to pay his claim.
The Washington Office of the Insurance Commissioner also issued a cease and desist order against the Global Healings Society last year.
The group’s website encourages people to join a “cooperative of like-minded men and women coming together, empowered as a collective body to assist one another in time of need, while fulfilling the need for assurance in the place of insurance.”
The five cooperatives purport to provide members with “assurance” for automobiles, major medical, homes, life and student assistance. Individuals and families pay a fee to join each cooperative but can receive benefits only when the number of members reaches a certain level (interesting). In addition, “a monthly donation is required to cover the cost of member incidents if assistance was required.”
Not surprisingly, other states have similar problems with Global Healings. Read here for information on Florida, Michigan and California.
Comments would be welcome on this issue, and please let us know through the ProSchools blog if you have any personal knowledge or horror stories you would like to share!