Colorado -- Cease and Desist letter issued
In a letter to PIC's attorney, Randall S. Goulding, the Colorado Division of Insurance directed CARE and PIC to "cease and desist from the unauthorized transaction of insurance business in Colorado." The letter further stated:
"It also appears that PIC is using unlicensed persons to solicit or sell insurance which is a violation of 10-2-204 C.R.S. PIC also appears to be misrepresenting the terms and conditions of an insurance program as well as inducement to purchase such insurance product, which is a violation of 10-3-1104 C.R.S."Questions or concerns should be directed to Colorado Deputy Commissioner of Insurance John Ehnes: (303) 894-7499.
Vermont -- Cease and Desist ordered
On March 17, 1993, the Vermont Department of Banking, Insurance and Securities issued a "Cease and Desist" order against CARE and PIC. In the accompanying press release, Commissioner Elizabeth R. Costle stated: "The department's quick action in shutting down the unauthorized sale of insurance is part of our ongoing mission to protect the insurance consumers of Vermont." The release encouraged "Vermont chiropractors who have obtained insurance coverage from PIC through CARE should immediately seek alternative coverage."
All questions and information should be directed to Vermont Director of Insurance Regulation Tom Van Cooper: (802) 828-3301.
Arizona
While Arizona is not currently conducting an investigation of either PIC or CARE, the state department of insurance has acknowledged that neither PIC/CARE is "authorized in this state." Should you have any questions, please contact Jay Rubin, assistant director, Consumer Affairs & Investigations: (602) 255-4783.
Connecticut
The state insurance department acknowledges that "neither entity is licensed to do insurance business in this state and we have no indication that they are." If you have any questions or information regarding CARE or PIC doing insurance business in Connecticut, please call Counsel George R. Hummelman: (203) 297-3800.
Iowa
Correction: The Insurance Division of Iowa is not currently conducting an investigation as was reported in the February 26, 1993 issue. They acknowledge that "PIC/CARE is an entity neither licensed nor authorized to do business in the state of Iowa." In addition, Attorney Angela M. Burke states:
"It is our sincere hope that PIC/CARE is not soliciting or operating within the boundaries of this state. Should this not be the case, we would encourage those practitioners to contact our division."Attorney Burke: (515) 281-5705.
Kansas
The Kansas Insurance Department acknowledges that "neither organization (CARE/PIC) is authorized to transact the business of insurance in this state." They further state:
"We will be contacting both organizations regarding this matter. We will also provide this information to the Kansas Chiropractic Association to assist their association in notifying member chiropractors."All questions and information should be directed to Mr. Stacy N. Moorhead, AAI, CIE, Fire and Casualty Policy Examiner: (800) 432-2484 or (913) 296-3071.
Minnesota
The Enforcement Division of the Minnesota Department of Commerce has acknowledged that Enforcement Investigator Nan Remus has been assigned to investigate CARE. All questions and information should be directed to her: (612) 297-3975. Please reference file #9302407 when calling.
North Carolina
The state department of insurance acknowledges that "Neither of these entities (CARE/PIC) are licensed or authorized to engage in or transact insurance business in North Carolina." In addition, Senior Deputy Commissioner and General Counsel Ann W. Spragens warns:
"As you are surely aware, chiropractors purchasing from unlicensed companies do not enjoy the regulatory protection, enforcement or assistance generally provided by state insurance departments in the event of premium or claim problems."Ms. Spragens: (919) 715-0011.
Oklahoma
The Oklahoma Insurance Commissioner's office has acknowledged that "PIC/CARE are unlicensed, and there was no current investigation or any action or orders against these entities." Assistant General Council John F. Drexter has been assigned to the matter. Mr. Drexter: (800) 522-0071 or (405) 521-2828.
Wyoming
The Wyoming Insurance Department acknowledged that "Neither PIC or CARE are authorized insurers in Wyoming." Their letter also states the requirements for an insurer to be authorized: an "effective trust fund of at least $3,500,000 within the United States" and be a "recognized financial institution." Their letter also states:
"Since neither of the above requirements have been met by PIC or CARE, no coverage could be placed on a Wyoming chiropractor. If this department becomes aware of any activity by these entities in Wyoming, immediate action will be taken by this department."Questions or information should be directed to Assistant Commissioner Charles Hartman: (307) 777-7319.
We are still awaiting additional information from 37 other state insurance departments. As received, their responses will be presented in future issues.
Dynamic Chiropractic editorial staff members research, investigate and write articles for the publication on an ongoing basis. To contact the Editorial Department or submit an article of your own for consideration, email
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