Health Insurer Sued Over Allegedly Deceptive Third-Party Sales

Health Insurance Innovations Inc. didn’t tell investors it relied on outside salespeople who allegedly used deceptive tactics to market the firm’s plans, according to a Feb. 18 suit.

The company, which goes by HIIQ, should have disclosed its reliance on outsiders who overstated policy coverage, the would-be class complaint filed in the U.S. District Court for the Middle District of Florida said.

The outside company’s sales tactics led to a Federal Trade Commission investigation in October 2018. HIIQ “immediately suspended its relationship” with the other firm after it learned of the investigation, according to a Nov. 2 press release.

HIIQ ...