OFIR Suspends License of American Medical and Life Insurance Company

March 29, 2012
Media Contact: Jason Moon 517-335-1700
Consumer Hotline: 877-999-6442

LANSING - The Office of Financial and Insurance Regulation (OFIR) has suspended the insurance license of New York-based American Medical and Life Insurance Company (AMLI). OFIR also ordered AMLI and 29 other organizations that sold AMLI’s limited benefit health plans to cease and desist from all activities in violation of Michigan’s Insurance Code.

An OFIR investigation into AMLI, which insures more than 2,500 Michiganders, found that the company:

  • Allowed unlicensed and unappointed insurance agents to sell its limited benefit health plans to Michigan consumers from 2006-present.

  • Conducted insurance business in Michigan prior to becoming an authorized insurer in 2008.

  • Sold unapproved limited benefit health plans to Michigan consumers from 2011-present.

  • Has entered into settlement agreements with at least five other states for a variety of insurance law violations.

“All insurance companies, agents and products need to be properly licensed and approved in order to protect consumers,” Commissioner Kevin Clinton said. “Any Michigan consumer with a question or a complaint about an AMLI limited benefit plan should contact us immediately.”

Michigan consumers can contact OFIR on the agency’s toll-free hotline at 877-999-6442

About Limited Benefit Health Insurance Plans

Limited benefit health plans are insurance products with reduced benefits intended to supplement comprehensive health insurance plans, not to be an alternative to them. They may be marketed as Cancer Only, Specific Disease, Hospital Cash or Indemnity plans. These plans are not typically required to provide the same level of coverage, so they cover fewer types of medical expenses than a comprehensive policy. They may also have higher co-insurance percentages, co-payments and deductibles than comprehensive plans.

What to Consider With a Limited Benefit Health Insurance Plan

  • Consider the current or future medical needs you or your family may have.
  • Decide which medical expenses you may need covered by a limited benefit policy and which you can pay for out-of-pocket.
  • If you are considering a limited benefit health plan instead of continuing existing benefits under COBRA or purchasing an individual policy, figure out if the premium savings will offset the high out-of-pocket expense for medical services not covered by the limited benefit plan.

To read OFIR’s suspension and cease and desist orders, visit: