Suit Says Health Insurance Distributor Stiffed Brokers

Law360, New York (November 17, 2009, 12:42 PM EST) -- A Texas health insurance broker has hit America's Health Care/RX Plan Agency Inc. with a proposed class action for allegedly cheating its contracted brokers out of commissions by submitting unintelligible and often false commission statements.

According to the complaint, filed Monday in the U.S. District Court for the Northern District of Texas by insurance broker Susan J. Flowers, AHCP, which is owned by Alliance HealthCard Inc., systematically failed to pay most or all of its more than 2,000 brokers all the commissions they earned.

AHCP sells...
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