Maine High Court Upholds $150,000 Penalty Against Guarantee Trust Life

PORTLAND, Maine — The highest court in Maine has upheld the imposition of a $150,000 penalty against Guarantee Trust Life Insurance Co. for unlawfully marketing health insurance in Maine on behalf of American Medical and Life Insurance Co. pursuant to a fronting arrangement.

On Nov. 21, the Maine Supreme Judicial Court found the Maine insurance superintendent properly found that GTL is accountable for violations committed by its producer, Cinergy Health Inc.

GTL is an Illinois insurance company licensed to do business in Maine. Cinergy Health Inc., a Florida company, was licensed in Maine as a nonresident producer agency. Cinergy began …