A Seattle-based insurance marketing company, Assurance IQ, has agreed to a $100 million settlement with the Federal Trade Commission (FTC) over allegations of deceptive sales tactics in marketing health insurance products. This case highlights the importance of transparency in the insurance industry and serves as a cautionary tale for consumers.
The Allegations Against Assurance IQ
Founded in 2016, Assurance IQ operated as a direct-to-consumer platform, selling insurance online and via telemarketing. The FTC's complaint centers on the company's marketing of short-term medical and limited benefits indemnity plans, which were misleadingly presented as comprehensive health coverage. These plans, not compliant with the Affordable Care Act, left many consumers with unexpected medical bills.
The Settlement Details
- Assurance IQ neither admits nor denies the allegations.
- The settlement marks a significant downfall for the company, which was acquired by Prudential for $2.35 billion in 2019 but is set to close in May 2024.
- The FTC will use the settlement funds to provide refunds to affected consumers.
How to Get a Refund
Consumers impacted by Assurance IQ's practices can visit FTC.gov/redress to learn about the refund process.
This case underscores the risks of misleading marketing in the insurance sector and the FTC's role in protecting consumers from deceptive practices.
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