The FTC claimed that Assurance misrepresented coverage, offered unsubstantiated discounts, and enrolled customers in supplemental products without clear disclosure or consent. The company’s telemarketers allegedly used deceptive tactics outlined in company scripts to lure customers into purchasing healthcare plans.
Assurance IQ, founded in 2016 by Michael Rowell and Michael Paulus, utilized technology to connect consumers with insurance plans either online or through agents. Despite flying under the radar in the Seattle region and reaching unicorn status as a $1 billion company without external funding, the startup was eventually acquired by Prudential in a multi-billion dollar deal.
Following missed financial targets and government investigations, Prudential decided to shut down Assurance last year, resulting in the layoff of 112 employees in Seattle. As part of the settlement, Prudential, as Assurance’s parent company, will ensure compliance with the terms of the agreement.
The FTC’s legal action, filed in federal court in Seattle, is part of a larger $145 million settlement that also involves MediaAlpha from Los Angeles. MediaAlpha is accused of deceiving consumers through misleading lead generation practices and robocalls.
