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Guest Dolores Lawrence

Anyone heard of American Employees Benefit Trust?

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Guest Dolores Lawrence

Has anyone heard of a multi-employer "American Employees Benefit Trust" offered by Founders Financial Group?

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What are they trying to sell under the VEBA?

Since the start of this year there has been numerous cases of actions taken by a number of state DOI against unlicensed entities many of whom were unlicensed health plans and also selling them under alleged multi-employer plans which were deemed to be MEWAs and therefore also illegal etc.

A number of these groups have tried to replace the unlawful or unlicensed coverage with other unlawful or unlicensed coverage and some will continue to try to do this.

It is not as important to know the current names being used as it is to know who is using them.

I

t might be prudent to get more details on the promoters etc (names of principals, addresses etc) then run that info by your state unlicensed entity investigators to see if any of the names are familiar to them and why. Y ou might also want to do the same thing with some of the more active state DOI, Texas, Louisiana, Kentucky, Florida. Also check the names and addresses on the Court Orders at www.texasreceiver.com and on Order 02-0487 on the Texas DOI website.

MEWAs are most likely not allowed in your state so ask your DOI. Also VEBAs and MEWAs are not things sold by agents, they are legal entities set up by lawyers. An agent could promote the services of a lawyer who will set these up for you, but an agent should not be selling one or setting one up.

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Guest Dolores Lawrence

Have not seen proposal. Promoter is Founders Financial Group. Referring to plan as a multi-employer VEBA. Can't find anything on Founders Financial Group.

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I believe that this is a group out of Southern California. The principal called me a few months ago for some free advice. We discussed what he was trying to do and I cautioned him that his approach would be a MEWA and needed to have an insurance company providing the benefits unless the plan qualified as an insurer.

What benefits does the plan offer?

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