Newspaper article THE JOURNAL RECORD

Suit Filed against Reinsurance Firm

Newspaper article THE JOURNAL RECORD

Suit Filed against Reinsurance Firm

Article excerpt

The Oklahoma Insurance Commissioner has filed a lawsuit in Oklahoma County District Court seeking a permanent injunction to keep a Texas reinsurance company from operating in Oklahoma.

Americas International Reinsurance Co. Ltd. was named in the injunction action.

Americas International represented itself as a third-party adminstrator, but did not have the necessary license to operate in Oklahoma, said Mary Clark, assistant general counsel for the commission.

The company was marketing a group life, health and accident insurance policy to school districts in Oklahoma, Clark said.

"We have run into, lately, a lot of either third-party administrators or what I'm going to call a ficticious group, soliciting business in Oklahoma for group accident and health insurance," said Clark.

"When AIRCO first came to our attention, we sent letters to every school district in the state to tell them (the company) was not licensed in Oklahoma," Clark said. "Basically, we put them on notice that they need to be aware of who they do business with."

"AIRCO had ceased doing business here," Clark said. "What we're doing is making sure this doesn't happen in the future.

"All we truly want to do is make a record, and obtain a permanent injunction so that these individuals or this corporate entity cannot come back into Oklahoma and conduct business," Clark said.

The Oklahoma Insurance Commission first became aware of the company in August, when it received inquiries about a group accident and health program that was being marketed to schools called "Okla School Plan," Clark said.

A brochure prepared by American International said the program was underwritten by Fort Worth-based Allied Bankers Life Insurance Co. and Dallas-based American Equitable Life Insurance Co. and that it would be administered by Americas International. Both companies said they had no knowledge of the program, Clark said.

Americas International got licensed insurance agents to represent it to the school districts. Upon being contacted by the insurance commission, they ceased solicitation and helped with the investigation, Clark said. Those agents "had checked with the people that they thought were with Allied Bankers, and they were told they had all the papers," Clark said.

No Oklahoma City-area school districts bought policies from Americas International, but among the 20 that did were Valiant, Thomas, Colcord, Sequoyah, Stillwell, Proctor, Wayne, Panama, Inola, Hugo, Weleetka and Coweta.

Schools that were being solicited included Claremore, Stillwater and Tulsa Union, she said. …

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