The Colorado Division of Insurance on Monday issued an emergency cease-and-desist order against a Washington company for selling fake auto insurance.

The Global Healings Society already has been ordered to stop doing business in other states, including Michigan, Washington and Florida.

Based in Puyallup, Wash., Global Healings also is known as The Auto Bond.

The Division of Insurance launched an investigation after a customer complained Global Healings failed to pay her claims after an auto accident. The investigation showed Global Healings doesn't have a license to sell insurance in Colorado. The company failed to respond to the division's request for more information.

David Rivera, the state commissioner of insurance, said in a statement that he is concerned more Coloradans have bought the fake insurance from Global Healings.

"Some unsuspecting Colorado drivers may not realize they do not have auto insurance that complies with our laws until they make a claim, and then it is too late," he said.

Consumers who bought products from Global Healings or through the Web site hehasmore.org are asked to contact the Division of Insurance.

The Web site declares that it doesn't sell auto insurance, but instead is a co-operative membership that collects a monthly donation "to cover the cost of member incidents."

Insurance regulators in Michigan earlier this year branded Global Healings a pyramid scheme where new money covers the people already in the system.

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The Denver Business Journal

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