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Unlicensed insurers ordered to stop doing business in Maryland

Several Tennessee companies and people unlicensed to sell heath insurance in Maryland have been ordered to stop selling policies to state residents, the state Insurance Commission announced Monday.

About 700 Maryland residents are believed to have been scammed by companies including American Trade Association, Real Benefits Association, Smart Data Solutions and Serve America Assurance, Ltd.

These companies were not licensed by Maryland and therefore had not demonstrated that they had the financial resources to pay claims, according to the insurance commission. Nor were consumer protections in place for those who bought their policies.

Marylanders who did business with these companies should file a reimbursement claim at http://www.americantradeliquidation.com/ under Tennessee liquidation proceeding.

For more information, affected consumers should also call the Maryland Insurance Commission at 410-468-2200 or 800-492-6116 ext. 2200). They can also e-mail enforcement@mdinsurance.state.md.us.

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