CONTACT FOR MEDIA: Eva Smith-Carroll, Department of Insurance, (502) 564-2664 or 800-595-6053, Ext. 253

IMMEDIATE RELEASE: April 2, 2002

Insurance Department gets restraining order against unlicensed company

FRANKFORT, Ky. - The Franklin Circuit Court issued a restraining order on Monday, April 1, against a company that the Kentucky Department of Insurance alleges has been marketing health insurance to Kentuckians without proper authorization.

The request for the restraining order was made as part of a complaint filed by the department and the Attorney General's Office.

The defendants -- Good Samaritan Association Inc., an Indiana corporation; Medical Benefit Administrators of Maryland Inc., and Ronald J. Wilson of Timonium, Md. -- are restrained from doing unauthorized insurance business in Kentucky. Note: Good Samaritan Association is not affiliated with Samaritan or Good Samaritan hospitals.

The Department of Insurance and the Attorney General's Office filed the complaint and sought the restraining order after an investigation by DOI's Consumer Protection and Education Division revealed that Good Samaritan Association lacked authority to transact insurance business in Kentucky. CP&E Division research indicates that 109 Kentuckians obtained insurance through Good Samaritan Association.

The insurance coverage was marketed through a Web site. Insurance officials became aware of the defendants' activities during the course of another investigation.

Insurance officials stressed that Kentucky residents who have a policy with this company do not have coverage. Good Samaritan Association was not marketing a recognized health plan, meaning consumers could sacrifice important rights to health coverage in the case of pre-existing medical conditions. They also might have to pay their own medical bills if the company fails to meet its financial obligations.

These policyholders should immediately seek other health coverage. Consumers with questions may call the Department of Insurance toll free at 1-800-595-6053 and ask for Consumer Protection and Education. Information about health insurance options is detailed in a publication, HMOs and Insurers Authorized to Write Health Benefit Plans in Kentucky, available online under the Health Insurance section on the Free Publications. page at the DOI Web site -- http://doi.ppr.ky.gov/kentucky/