Arizona Man Arrested in New Jersey on 92 Counts of Fraud

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Phoenix, AZ –The Arizona Department of Insurance Fraud Unit, in a joint effort with the New Jersey Department of Insurance, arrested Brian McFarland on a total of 92 criminal counts involving fraud schemes, identity theft, and theft totaling more than $450,000. On October 17th, McFarland was taken into custody in New Jersey and will be transported back to Phoenix, where he faces prosecution by the Arizona Attorney General’s Office. McFarland is alleged to have forged his name on the Arizona insurance producer license of another agent with the same last name in 2005, and to have worked under the falsified license as an insurance agent for Resource Marketing Insurance Agency, LLC, which conducted business under the name Legends Environmental Insurance Services, LLC (“Legends”). In September 2013, Legends merged with Insurance Office of America, Inc. In the process of checking the background of the Legends employees they intended to retain, Insurance Office of America discovered McFarland’s forgery and reported it to the Arizona Department of Insurance Fraud Unit.

Based on evidence obtained from Insurance Offices of America, on July 23, 2014, the Arizona Department of Insurance Fraud Unit obtained a warrant to search Mr. McFarland’s place of business and his residences in both Phoenix and Flagstaff, Arizona. Initially, Mr. McFarland was believed to have sold over 200 commercial insurance policies while posing as a licensed agent. However, the Fraud Unit’s investigation suggests McFarland set up fraudulent bank accounts under Legends’ name without the agency’s knowledge, and diverted into these bank accounts approximately $453,614.84 in premium payments belonging to 87 different commercial environmental companies located throughout the U.S. No insurance policies were ever issued for the premiums paid by the environmental companies.

During the investigation, McFarland moved out of Arizona and was recently located in New Jersey. Thanks to the coordinated efforts of the New Jersey Department of Insurance and the Fugitive Investigations Unit of the Gloucester County, New Jersey Prosecutor’s Office, Brian McFarland was arrested and will be returned to Arizona for prosecution.

Insurers Offering Individual Health Insurance in Arizona

Lists insurance companies that are offering health insurance to individuals and families in Arizona in 2020.  Open enrollment starts November 1st and now runs through December 17th, 2019.  Individuals can start shopping for coverage now at healthcare.gov or cuidadodesalud.gov (Spanish)

Arizona's Surprise Bill Resolution Report for 2019

As shown in the attached report prepared pursuant to A.R.S. § 20-3118(A), the Department of Insurance received 91 requests for dispute resolution in Calendar Year 2019.  Of those, 53 have been resolved or closed, and health plan enrollees saved $41,538 by submitting their surprise bills for resolution.  

Not all health care bills qualify for the surprise bill resolution process.  The Department's Suprise Out-of-network Billing Dispute Resolution website (https://insurance.az.gov/soonbdr, and especially the section entitled, "I got a surprise bill. Can I submit a request for arbitration?") lists conditions when a health care bill may not qualify under Arizona law for the dispute resolution process.  But for those that do, the enrollee will only be responsible for paying the enrollee's cost-sharing amounts (copay, coinsurance and deductible) if the enrollee provides information the Department needs, and participates in an informal settlement teleconference with the health care insurer and the health care provider.

Notice of Proposed Rulemaking - Corporate Governance Annual Disclosure Model Regulation In 2019, the Arizona Legislature adopted the NAIC Corporate Governance Annual Disclosure Model Act at Arizona Revised Statutes (“ARS”) by enacting the Corporate Governance Act at Title 20, Chapter 2, Article 16 (Laws 2019, 1st Reg. Sess., Ch. 180, § 1).   The Department of Insurance (“Department”) seeks to adopt the correlate Corporate Governance Annual Disclosure Model Regulation.  ARS § 20-492.02 allows the Department to adopt rules to carry out the Act upon notice and an opportunity to be heard.  The Legislature has exempted the Department from Title 41, Chapter 6 for one year after the effective date of the Act.  (Laws 2019, 1st Reg. Sess., Ch. 180, § 2.)
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