The Pennsylvania Insurance Department has ensured payment of roughly $1 million in health claims that were never covered by insurance. The department broke up an insurance scheme by Nassau Trust (NEBT), a New Jersey company that posed as an insurer and sold nonexistent accident and health insurance policies to Pennsylvania employers. NEBT has since gone bankrupt.
Allstaffing Inc., a human resource services provider in Lansford that enrolled employers in NEBT plans, is under a cease-and-desist order from the Insurance Department. Gerber Life Insurance Company, which brokered NEBT policies through its agent Elite Brokerage Services, will pay related claims because Elite failed to ensure that NEBT was a licensed insurer.
Tip: Make sure every vendor that handles your insurance is licensed. Find out by visiting the Insurance Department’s website at www.insurance.state.pa.us and searching under “quick links.”
- What issues most concern working women?
- Cut your retaliation risk: Make sure training is open to everyone who's eligible
- Are there perils in giving a pay raise in hopes of boosting employee performance?
- Use independent contractors? Check out new DOL guide
- Problem Solved: Real People … Real HR Solutions, July '09