10 Sep Chamber of Commerce Litigation: Steven self, etc. v. United International Insurance Company, et al.
JEFFERSON AND ST. CLAIR COUNTIES SETTLEMETN OF $4,020,000
On behalf of nine Alabama families who purchased health insurance policies through the Birmingham, Pell City, and Childersburg Chambers of Commerce as part of a plan known as the CCAA Plan. This plan failed quickly and was determined to have been issued under the name of the United International Insurance Company, which was not ever licensed to do business in Alabama and was nothing more than a dormant insurance charter supposedly headquartered in the Caribbean island of St. Kitts. The plaintiff families purchased the CCAA coverage only to learn that their coverage was worthless. Unfortunately, some families had serious health claims and had to pay for medical treatment out of their pockets. One individual had brain surgery due to a malignant tumor for which his family was responsible and had to delay follow-up treatment. Several others had surgery for a variety of health problems.
There are numerous defendants in the litigation ranging from a Birmingham insurance agency which promoted the CCAA plan to other individuals or companies who developed it. One defendant was a vice president of Hilb, Rogal and Hamilton of Atlanta, Inc. who promoted the plan and received a portion of the premiums but did not conduct any evaluation of whether the plan was financially viable, issued by reputable companies, or even legal. These companies and individuals were sued for their negligence. The Alabama Department of Insurance recognized problems with the CCAA Plan within 90 days of its start date but lacked the resources to assist the families in getting their claims paid or any other compensation.
A judgement of $8,500,000 for fraud was obtained against other defendants who did not participate in the settlement but who actively orchestrated the fraudulent CCAA Plan.