STATE ORDERS UNAUTHORIZED INSURER TO CEASE OPERATIONS

Springfield, IL Illinois Insurance Director Mark Boozell has ordered Families United for Life Insurance Company, Ltd. and its affiliated organizations to cease and desist the sale of unauthorized group health insurance to Illinois consumers. The unauthorized insurance company is headquartered in the British Virgin Islands, but maintains an office at 6122 North Lincoln in Chicago. Also named in the order are Mayer Eisenstein, Jeremy B. Eisenstein and Marshall Kolodenko, as well as the following entities located in the Chicagoland area: Homefirst Health Plan; Homefirst PPO Group Health Insurance Plan; Homefirst News; Homefirst Independent Physician Association, Inc.; Homefirst Health Services; Homefirst Medical Group; Homefirst Insurance Agency, Inc.; and Lifefirst, Inc.

Although the Department of Insurance declared Families United ineligible to conduct a surplus lines insurance business in Illinois on February 23, 1996, the company has continued to illegally market its group health plan under the name of Homefirst Health Plan which is made available to individuals who join Lifefirst, Inc. The plan operates much like a health maintenance organization with services provided by Homefirst's own clinics and physicians. The plan is marketed as comprehensive coverage, but primarily focuses on home birth services. New enrollees in the plan are often already pregnant and receive extremely limited coverage.

"I strongly caution Illinois consumers to verify a company's licensing status with our agency before buying any type of insurance," Boozell said. "It is important for people to clearly understand that if they buy coverage from an unauthorized insurer, they will have little or no recourse if claims problems arise and they will have no guaranty fund protection if the company becomes insolvent. Few insurance entities provide maternity benefits to women who are already pregnant. That in itself should send up a red flag to potential policyholders," he warned.

The Department of Insurance has scheduled a hearing in late June to determine whether or not the cease and desist order will be made permanent.