June 30, 2024
OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler fined Unite Health Share Ministries $300,000 on June 28, 2024 and ordered it to stop selling insurance in Washington state.
The Office of the Insurance Commissioner opened an investigation after receiving a complaint that Unite Health had paid only $5,000 on a consumer’s medical claim. The consumer was left with almost $200,000 in medical bills.
“Protecting the people of Washington from predatory organizations is one of my office’s top priorities,” Kreidler said. “These companies promise coverage and leave consumers with massive medical bills. It’s an unacceptable practice and we have rules in place to prevent it.”
Unite Health markets itself as a health care sharing ministry but fails to meet the legal definition under state law. According to its program materials, the company also denies enrollment to consumers with certain pre-existing conditions, which violates the Affordable Care Act.
Unite Health acted as an unauthorized insurer when it enrolled more than 320 Washington residents in its membership program and collected membership fees. From 2019 to 2023, Unite Health collected $2,919,125.19 in membership fees from Washington residents, leaving it with $74,999 in unpaid premium taxes.
Unite Health has 90 days — until September 26, 2024 — to request a hearing; if no hearing is requested, the fine will be due within 30 days.
Consumers can visit the Office of the Insurance Commissioner’s online database to ensure their insurance company is authorized to do business in Washington state.
Fines issued in May & June
In addition to the Unite Health fine, Kreidler’s office issued $213,500 in fines in May and June for violations of state insurance laws and regulations.
The other fines included:
First Premier Home Warranty Corp., Brooklyn, NY; fined $50,000 (order 24-0045).
- First Premier submitted a service contract provider application to the OIC in August of 2022, but never included the documents required to complete the process. The company sold 22 service contracts, received $20,859.22 in payments and paid $5,549.83 to consumers without being registered to conduct business in Washington.
Midwest Family Mutual Insurance Company, West Des Moines, Iowa; fined $5,000 (order 24-0117).
- The company incorrectly applied commercial property loss costs and rating factors to 50 business policies and failed to file exceptions to two rating rules before issuing policies.
Allstate Fire & Casualty Insurance Company, Northbrook, Ill.; fined $25,000 (order 24-0051).
- Allstate mishandled an auto insurance claim and incorrectly stated that the policyholder’s right to an appraisal could not be invoked after repairs were made. Allstate initially paid $8,816 in two installments, but eventually adjusted the payment amount to $27,607 after both parties hired appraisers.
Zurich American Insurance Company of Illinois, Schaumburg, Ill.; fined $1,000 (order 24-0101).
- The company applied incorrect rating factors on commercial package policies in 2022.
American Zurich Insurance Company, Schaumburg, Ill.; fined $1,000 (order 24-0092).
- The company applied incorrect rating factors on commercial package policies in 2022.
Towers Administrators LLC, Middletown, Del.; fined $25,000 (order 24-0048).
- The company operated as a discount plan organization without obtaining a valid license to do so in Washington state.
James Bischoff, Las Vegas, Nevada; fined $1,000 (order 24-0052).
- Bischoff was ordered to stop representing himself as a certified financial education instructor, which he had been doing without holding active certification.
United of Omaha Life Insurance Company, Omaha, Nebr.; fined $3,000 (order 24-0054).
- United of Omaha was fined for failing to timely file large group negotiated rates.
GadgetGuard, LLC; fined $30,000 (order 24-0035).
- The company sold GuardPlusISM, which it marketed as an insurance policy, on its website without being authorized to transact insurance business in Washington state. In addition to the fine, GadgetGuard was ordered to stop conducting insurance business in Washington.
Kaiser Foundation Health Plan of Washington, Seattle, Wash.; fined $30,000 (order 24-0059).
- Kaiser failed to include required language in 17 gender-affirming care denial letters sent in 2022.
Apogee Insurance Group, unlicensed; fined $7,500 (order 24-0053).
- Gateway Underwriters Agency, Inc. was doing business as Apogee Insurance Group, which was a trade name not registered with the OIC.
RLI Insurance Company, Peoria, Ill.; fined $5,000 (order 24-0058).
- RLI issued policies using incorrect loss cost multipliers and construction classifications from 2020 to 2022, impacting 236 policies.
Jeffrey H. Franco, Blaine, Wash.; fined $2,000 (order 24-0042).
- Franco, an employee of Community Health Plan of Washington, changed consumers’ health plans without their knowledge or consent.
Blue Star Gas - Seattle Co., Tukwila, Wash.; fined $3,000 (24-0031).
- The company acted as an unauthorized insurer by servicing home heating fuel contracts without first registering with the OIC.
State Farm Mutual Automobile Insurance Company, Bloomington, Ill.; fined $25,000 (order 24-0039).
- State Farm filed to include Fair Credit Reporting Act notices on renewal policies and new business declarations in 2023.
About the OIC
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers. Since 2001, Kreidler has assessed more than $41 million in fines, which are directed to the state’s general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.
For an insurance question or complaint, you may contact Kreidler’s consumer advocates online or by phone at 800-562-6900.