Maine’s Insurance Superintendent Mila Kofman is warning consumers not to do business with a company that sells discount health insurance and then doesn’t pay claims.

Kofman also is asking any past customers of American Trade Association and their operators who have outstanding or unpaid claims to contact her office so the state can seek repayment for them.

Kofman issued a final cease and desist order Friday prohibiting the company from continuing activities in Maine and ordering them to pay outstanding medical bills, premium refunds, and civil penalties. It’s unknown how many Mainers bought the company’s insurance or may be owed refunds.

ATA and its other Tennessee-based operations have collected over $22 million in premiums nationwide, according to Kofman’s office. On April 27, 2010, a Tennessee state court found that approximately $7 million in medical claims are owed and only $2.1 million in assets exist.

“Health insurance scams are on the rise,” Kofman stated. “The reality is that they provide no real insurance coverage. This is one of many scams that have spread around the country. Consumers must protect themselves or be stuck with unpaid medical bills after having paid premiums.”

Consumers with questions or concerns about their insurance can contact the bureau’s Consumer Health Care Division by calling 1-800-300-5000, e-mailing [email protected], or visiting the bureau’s website at

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