The lawsuit is about greed according to this article and the Kingdom group that was supposed to be selling policies appears to have been left out of the arrangement or contract. From what I am reading here the 2 other insurance carriers cheated and kept the business for themselves, thus not having to pay commissions for the sales of policies to the National Baptist Convention which kind of makes this look a little worse if the folks from the church were cheated.
The church group also contends they would have sold more policies too, so it looks like the group from Texas took over and the group from Georgia did not get the opportunity to sell insurance contracts.
Now it looks like sales commission is the next level with the ongoing issues of health insurers. BD
THOMASVILLE, Ga.--(BUSINESS WIRE)-- Thomasville, Georgia-based Kingdom Insurance Group, LLC, which brokered a standard industry-accepted arrangement to sell health insurance products to the 7.5-million-member National Baptist Convention is suing its two former business partners, claiming they cheated it out of thousands of commissions it would have earned and left the church group with fewer insurance choices than it could have had.
Kingdom alleges United Healthcare, a subsidiary of UnitedHealth Group (NYSE: UNH) of Minnetonka, Minn., and Houston-based Protectors Insurance & Financial Services, LLC, schemed to cheat Kingdom out of millions of dollars revenue it would have made from the sale of health insurance policies to the Nashville-based National Baptist Convention, one of the largest African-American church groups in the United States.
“This is a case of greed, a giant insurance company from Minnesota conspiring with a small insurance agency from Texas to swindle their partner from south Georgia that put the two together and steal the business for themselves,” said Michael P. Bruyere, an attorney with Fields Howell, LLP, in Atlanta, who is representing Kingdom. “It’s wrong in principle, it’s wrong legally, and it’s wrong morally because they were supposed to be working together to serve a group of churches and its members.”
“Kingdom recognized that United would broaden its suite of insurance products, but lacked the network or contacts to market them to the church, and Protectors had access to the church’s members, but lacked the vast network and products offered by Kingdom. Without Kingdom, the joint venture between the insurance giant and Texas insurance agency to better serve the church groups would never have occurred,” said Bruyere. “But by 2009, United and Protectors essentially conspired to cut Kingdom out of the agreement to enrich themselves. They need to be held accountable.”
Insurance News - Lawsuit Claims United Healthcare Cheated Kingdom Insurance, Church Clients
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