Florida-based agent tells female investigator “I don’t think you need” maternity coverage

LITTLE ROCK – Arkansas Insurance Commissioner Allen Kerr today released the following statement on the issuing of an Emergency Suspension Order against Joseph Lata, a Pompano Beach, Florida-based Non-Resident insurance agent for using deceptive and misleading descriptions to sell health policies not in compliance with the Affordable Care Act and allowing an unlicensed person to sell insurance in Arkansas:

“This is another forward step in AID’s effort to curtail high-pressure telemarketers selling health insurance plans to Arkansans that are non-compliant with ACA, despite their promises.  The agent whose license we are suspending actually told a female member of my staff that he didn’t think she needed maternity coverage, which is part of an ACA-compliant policy.”

Emergency Suspension Order 2016-028, which can be read here, says Lata worked with two others to solicit the sale of an unsuitable health insurance product to a an AID investigator.  During the call, he failed to explain that the plan being sold was a short-term medical insurance policy that was not in compliance with the ACA.  One of the people working with Lata also made the misleading claim that the State of Arkansas was allowing only 1,000 Arkansans to enroll in a special lower-cost policy.

Kerr added: “AID will continue to investigate these groups of people who have chosen to prey upon Arkansas consumers with high-pressure, misleading tactics.  If you have received this type of sales call, or have purchased one of these types of plans, please contact our Consumer Services Division immediately.”

Consumers can contact AID’s Consumer Services Division at: 800-852-5494.