INDIANAPOLIS (Legal Newsline) – Three consumers claim that insurance companies deceived policyholders about certain plans.

Mark Aliquo, Kevin Bryant and Timothy Lacy, on behalf of themselves and all others similarly situated, filed a complaint on Jan. 3 in the U.S. District Court for the Southern District of Indiana, Indianapolis Division against HCC Medical Insurance Services LLC, HCC Life Insurance Co. and Health Insurance Innovations Inc. for alleged violation of the Racketeer Influenced and Corrupt Organizations Act.

According to the complaint, the defendants market short-term medical insurance plans with pre-existing condition exclusions. 

"They commit to providing short-term medical insurance with a pre-existing condition exclusion as short as six months and only as long as two years, and to promptly paying any claims arising during the period of coverage during a period as short as one month," the suit states. "The defendants never do this."

The plaintiffs claim that instead, defendants allegedly engage in a "five-year-look-back" at policyholders' medical records in an effort to deny a valid claim or make a policyholder ineligible for insurance, which is known as post-claims underwriting. 

The plaintiffs allege that the defendants have failed to abide by their contracts with policyholders.

The plaintiffs request a trial by jury and seek damages including all monetary relief, an order for the defendants to immediately cease and desist unlawful practices, award attorneys' fees, costs, pre- and post-judgment interest and such relief as the court deems just and proper. They are represented by Vess A. Miller, Irwin B. Levin and Richard E. Shevitz of Cohen & Malad LLP in Indianapolis, Rachel Geman of Lieff Cabraser Heimann & Bernstein LLP in New York, and other law firms.

U.S. District Court for the Southern District of Indiana, Indianapolis Division case number 1:18-cv-00018-TWP-MPB

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