Georgia Insurance Commissioner John W. Oxendine has ordered two organizations allegedly acting as unlicensed insurers to stop selling insurance-like products.
The two groups are The Butler Aid Society and God First Missionary Membership Association and Floral Club, both located in Butler.
Both organizations offered cash payments to members upon death, though neither entity is a licensed insurance company or registered as a pre-need funeral business, Oxendine said.
“There’s a serious financial risk to consumers whenever you have a small operation like this, run out of somebody’s hip pocket without proper capitalization and regulatory oversight,” Oxendine said.
The God First Association is affiliated with the Charles W. McDougal
Funeral Home, also in Butler, and offered a burial vault, standard headstone and discounts on funeral services, as well as a cash payout.
The order was effective Aug. 6; both businesses have 10 days to request a hearing before the commissioner.
Topics Georgia
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