HR Trust Consumer Resource Page
FAQs | Prevent Insurance Fraud | File an Insurance Complaint
Frequently Asked Questions - as of June 25, 2008
Update: On March 6, 2008, the Commissioner of Insurance issued an Emergency Cease and Desist Order against HR Trust for conducting the unauthorized business of insurance. After TDI issued the Cease and Desist Order, HR Trust decided to shut itself down permanently and issued letters which terminated health care benefits in Texas as of March 31, 2008, and terminated health care benefits nationwide as of April 11, 2008. At the present time, it does not appear that funds are available for payment of any pending claims or for reimbursement of premiums. Individuals who have suffered a financial loss may want to seek legal advice. For questions and information about HR Trust, consumers can call the TDI Consumer Help Line at 1-800-252-3439. Prior to enrolling in a new health plan, we advise you to contact the Help Line to learn whether the individuals and the entities selling the insurance are licensed in Texas.
Q: When I signed up with HR Trust, I executed an approval for my monthly payments to be automatically drafted on my bank account. Now that HR Trust is not providing any benefits, will my account continue to be drafted? If it is, what can I do?
A: Consumers who provided automatic draft authority to their particular financial institution should cancel that authority immediately. Consumers should contact the financial institution and submit written declaration that the drafting authority is immediately canceled. Consumers who authorized their credit card company to issue such monthly payments should cancel that authority as well.
Q:If my account has been drafted for the months of March or April, what do I do? Can I get my money back?
A: The Texas Department of Insurance (TDI) is working to have any drafts executed in March or April reversed and the funds returned to the issuing authority. Such results are possible only if there are sufficient funds available as determined by a financial audit of HR Trust.
Q: HR Trust sent me a letter dated March 28, 2008, stating that my health care benefits would terminate effective March 31, 2008. Do I have any options for health care coverage such as COBRA?
A: Probably not. To qualify under COBRA, you must have lost your coverage because of a voluntary or involuntary termination of your employment for reasons other than gross misconduct or a reduction in the number of hours. In addition, the employer must continue to offer the health plan.
In the case of HR Trust, TDI has determined that it was not an employer as that term is defined under common law and that the self-employed individuals enrolled in the plan were not true employees. HR Trust was an employer in name only for the purpose of offering health insurance. Therefore, there may not be a qualifying event to trigger COBRA health coverage. Further, indications are that the plan itself has been terminated, and thus there is no continuing health plan of the “employer.”
TDI did not direct HR Trust to immediately cease all operations. After TDI issued the Cease and Desist Order, HR Trust decided to shut itself down.
Q: Do we have any options for health care coverage such as state continuation?
A: Probably not, for the same reasons that COBRA does not apply (please see question and answer above). There is no group coverage in effect to be continued. You should immediately seek other health care coverage.
Q: Can I count the coverage I had with HR Trust as creditable coverage to be used toward satisfying a preexisting condition period?
A: Probably. TDI and HR Trust are working to provide Certificates of Creditable Coverage to everyone enrolled in the unauthorized plan.
Prior to enrolling in a new health plan, call TDI's Consumer Help Line at 1-800-252-3439 to learn whether the individuals and the entities selling the insurance are licensed in Texas.
Q: I paid for coverage in advance. If my benefits are terminated, am I entitled to a premium refund?
A: Probably. The premiums paid in March were for April benefits and will be returned if there are sufficient funds. A financial audit will be conducted to determine these issues.
Q: I currently have outstanding health care claims pending. How can I get my claims paid?
A: HR Trust will provide TDI with financial documents to determine the financial status of the company. Until a financial audit is completed, it is unclear what assets are available to satisfy eligible claims. All efforts will be made to ensure that all unpaid claims are equitably resolved.
Q: What avenue(s) can I pursue to get recourse against this company if I have suffered a financial loss, i.e. inability to get my claims paid, premiums returned, etc.?
A: Texas Insurance Code Chapters 101.201 and 101.202 provide that any person who assists directly or indirectly in the procurement of unauthorized insurance is liable to the insured for the full amount of a claim or loss under the terms of the contract if the unauthorized insurer fails to pay the claim or loss. Reasonable attorney’s fees may be awarded if the unauthorized insurer fails to pay within 30 days of a demand prior to filing suit.
You should seek legal advice.
Q: If I lose my coverage with HR Trust, will I be able to get coverage with the Texas Health Insurance Risk Pool?
A: Probably. There is some precedent that indicates that individuals who were insured under an unauthorized plan have the ability to get coverage with the Texas Health Insurance Risk Pool.
Q: Who should I call to get assistance with questions/information about HR Trust?
A: Consumers can call the TDI Consumer Help Line at 1-800-252-3439.
Please note: These FAQs will be updated as TDI reviews information provided by HR Trust.
Prevent Insurance Fraud
Insurance Fraud Toll-Free Hotline - 1-888-327-8818
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File an Insurance Complaint
Read about TDI's consumer complaints process in the Helping You With Your Insurance Complaint publication. You may also e-mail, mail, or fax your complaint along with copies of your supporting documents to
Texas Department of Insurance
Consumer Protection Program (MC 111-1A)
P.O. Box 149091
Austin, TX 78714-9091
Fax: 512-475-1771
E-mail: ConsumerProtection@tdi.state.tx.us
For more information contact:
Last updated: 04/14/2009
