Judge liquidates troubled medical insurance firms
NASHVILLE, Tenn. (AP) - A judge has ordered the permanent shutdown and liquidation of two Tennessee companies accused of selling phony medical insurance policies.
The Tennessean reports state insurance officials say Springfield-based American Trade Association and Smart Data Solutions LLC collected almost $22 million in premiums and left customers with nearly 24,000 unpaid claims.
Court documents state some of the premium money was used to buy automobiles and real estate and to make donations to the University of Alabama Tide Pride booster club.
Davidson County Chancellor Ellen Hobbs Lyle ordered the liquidation on Tuesday. Neither company was licensed to sell or administer health-insurance policies.
Springfield resident Bart Posey, who owns the two companies, said he plans to appeal.
Oklahoma is one of a dozen states with cease-and-desist orders against the companies.