DCBS Media Release
May 9, 2006
Oregonians warned about group illegally selling insurance
The Oregon Insurance Division is advising consumers not to do business with a Washington organization that is illegally selling insurance in Oregon.
The Global Healings Society of Puyallup, Washington, which describes itself as a private ministry, uses the Internet to sell memberships in five cooperatives that purport to provide an alternative to traditional insurance coverage. The Insurance Division in May 2005 ordered the group to stop selling memberships to Oregon residents without being licensed in Oregon as an insurance company. However, the division recently learned that several Oregon residents had purchased memberships as an alternative to auto insurance, which is required by state law.
Purchasing a membership from Global Healings in place of insurance can have serious consequences, according to state regulators. An Oregon member who was involved in an auto accident in 2004 found that he had to pay for damages when Global Healings failed to pay his claim.
The Washington Office of Insurance Commissioner also issued a cease and desist order against the Global Healings Society last year.
The groups Web site (www.hehasmore.org) encourages people to join a co-op of like-minded men and women coming together, empowered as a collective body to assist one another in time of need, while fulfilling the need for assurance in the place of insurance.
The five cooperatives purport to provide members with assurance for automobiles, major medical, homes, life, and student assistance. Individuals and families pay a fee to join each cooperative but can receive benefits only when the number of members reaches a certain level. In addition, a monthly donation is required to cover the cost of member incidents if assistance was required.
Before buying coverage, the Insurance Division encourages consumers to check its Web site: insurance.oregon.gov, to see if an insurance company or agent is licensed in Oregon.
The Insurance Division is part of the Department of Consumer & Business Services (DCBS).