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CA Department of Insurance

Insurance Commissioner Jones announces Cease & Desist Order against USCT

Dave Althausen
August 4, 2011 9:38 AM

A Cease and Desist Order has been issued to the United States Contractors Trust (USCT), Arnold Katz, David L. Clark, Jeff Maher, Alliance Health Advisors, AHA Health Plans, Venture Support Group LLC, Benefit Plan Administrators and Web Benefit Plan ADM, to immediately cease the transaction of insurance in the State of California, including the solicitation, marketing, sale and issuance of any new or renewal limited medical benefit policies, including the collection and receipt of payments or premium.

USCT is a bogus health insurance plan that has been sold nationwide, primarily to individuals with pre-existing conditions or those seeking a low-cost alternative to traditional health insurance. USCT claims to offer guaranteed issue limited benefit health insurance. This program is sold via the internet and by telemarketers at a cost of approximately $149 to $500 per month. USCT was also sold under the former names of Real Benefits Association (RBA) and National Association of Business Leadership (NABL) since at least 2008. There is no licensed insurance company backing these plans although several insurers' names have been falsely reported to provide coverage

David L. Clark of Basking Ridge, NJ is the founder of RBA and receives claims on behalf of USCT. Arnold (Arnie) Katz of Solana Beach, CA recruits sales agents, pays commissions, issues ID cards and coverage information to insureds and handles premium collection for these programs under the names of Venture Support Group, LLC, Benefit Plan Administrators and Web Benefit Plan Adm. Jeff Maher of San Diego operates a telemarketing center under the business names of Alliance Health Advisors, Inc. and AHA Health Plans. Katz is no longer licensed and Maher's license was revoked by CDI in 2007. Clark's license was revoked in New Jersey and he was never licensed in California. Clark, Katz, Alliance Health Advisors, Inc., NABL, RBA and USCT have been named in several states' cease and desist orders.

RBA and NABL have ceased operating. Some insureds originally enrolled in RBA or NABL may have been moved to USCT without their knowledge and may not have received any materials that indicate coverage through USCT. NABL was also known as the CEO Club or Chief Executive Officers Club. CDI learned of these entities from an investigation of another bogus health insurance plan.

Consumers are urged to use caution purchasing health insurance through the internet or from telemarketers, and to verify the company and agent are licensed in California on or by calling 1-800-927-HELP.



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