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STATE ORDERS COMPANY TO STOP SELLING INSURANCE IN PENNSYLVANIA

 STATE ORDERS COMPANY TO STOP SELLING INSURANCE IN PENNSYLVANIA
 HARRISBURG, Pa., Dec. 11 /PRNewswire/ -- The Insurance Department has ordered Atlantic Healthcare Inc., a Portsmouth, Va.-based company, to stop selling insurance in Pennsylvania because it is not licensed by the state.
 The department ordered Atlantic Healthcare to cease and desist from soliciting customers, renewing policies and accepting premium payments. The company had sold group health insurance policies to at least 20 small businesses in Philadelphia, Allentown, York, Gettysburg, Pottsville and Williamsport.
 In addition, the department fined Atlantic Healthcare $90,000. The company must pay all outstanding claims submitted by subscribers and return all premiums and fees collected within 30 days.
 The department has ordered insurance agents who previously sold Atlantic Healthcare products to stop selling those products.
 Atlantic Healthcare also has been prohibited from doing business in Delaware, Kentucky, Maryland and Virginia.
 Pennsylvania Insurance Commissioner Constance B. Foster warned consumers to check with the department before purchasing insurance from companies such as Atlantic Healthcare that identify themselves as a Multiple Employer Welfare Arrangement, or MEWA. Although there are legal MEWAs, consumers should not presume that any entity using that designation is legal.
 "Any consumer considering purchasing an insurance product should call the Insurance Department for a quick verification that the company is licensed in Pennsylvania," Foster said. "Staff at the department's offices in Erie, Pittsburgh, Philadelphia and Harrisburg can check a company's license status."
 Consumers with questions about the license status of insurance companies may call the department's consumer services offices in Pittsburgh 412-565-5020; Erie, 814-871-4466; Philadelphia, 215-560-2630, or Harrisburg, 717-787-2317.
 /delval/
 -0- 12/11/91
 /CONTACT: Spike Lukens of the Insurance Department, 717-787-3289/ CO: Insurance Department; Atlantic Healthcare Inc. ST: Pennsylvania, Virginia IN: INS SU:


JS -- PH045 -- 1633 12/11/91 16:49 EST
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Publication:PR Newswire
Date:Dec 11, 1991
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