The Arizona Department of Insurance and Financial Institutions has issued a cease-and-desist order against RespondersHealth, accusing the company of acting as an unlicensed insurer under multiple business aliases.
The action followed three consumer complaints alleging RespondersHealth refused to pay valid health insurance claims.
Regulators said the investigation confirmed the denials and revealed the company never held a certificate of authority to sell health coverage in Arizona.
In February, DIFI subpoenaed documents from RespondersHealth’s claims administrator, which showed the firm failed to cover its share of consumer claims. Those files also included plan documents and summaries used to market the coverage.
Later that month, CEO Jason Spreitzer responded to a subpoena and claimed the business was a self-funded ERISA plan organized under Missouri law.
Under oath in March, Spreitzer described RespondersHealth as a nonprofit serving retired first responders, not a for-profit enterprise. He said the group was exempt from tax filings because it had fewer than 50 members.
He also blamed unpaid claims on the administrator and a separate entity, HomeSmart, which he claimed sponsored the plans. HomeSmart told regulators it did not sponsor employee insurance coverage.
Spreitzer further asserted that RespondersHealth entities in Arizona were inactive and that Health365 Plus, a Missouri-based affiliate, had been dissolved. Regulators noted the brand still operated a website and promoted insurance plans.
DIFI requested additional records—including sponsorship agreements, ERISA filings, cancellation notices, and dissolution papers—but said none were provided.
The regulator has now ordered RespondersHealth to immediately stop business in Arizona, refund all premiums collected, deliver cancellation notices to consumers, and provide a list of contracts issued in the state, along with details of producers who sold them.
Interim Director Maria Ailor said the order reinforces the state’s stance against unlicensed operators.
A company that misrepresents an unlicensed product as insurance is breaking Arizona law. We will continue to take action against those who illegally conduct insurance business and deceive the public.
Maria Ailor, Interim Director
When a regulator like Arizona’s Department of Insurance and Financial Institutions steps in on an unlicensed health insurance case, the first priority is consumer protection.
A cease-and-desist order halts the company’s operations immediately, preventing more residents from being drawn into what regulators see as an illegal scheme. Alongside that, regulators typically require restitution—meaning premiums collected from state residents must be returned.
For affected policyholders, though, the reality can be harsher. If a company wasn’t authorized to sell insurance in the first place, the protections and guaranty funds that normally back licensed carriers don’t apply.
That leaves consumers chasing refunds directly from the company or through regulators, which can take time and often depends on whether assets are available. In some cases, consumers have to turn to civil courts to recover losses.
From the regulatory perspective, investigations tend to extend beyond the state line. Health plans marketed as “self-funded ERISA” vehicles often attempt to use federal law as a shield against state oversight.
Regulators, however, look closely at whether the arrangement truly qualifies under ERISA or is simply a front for selling unauthorized coverage. If multiple states are impacted, agencies share information, and cases may escalate into multistate enforcement or even federal intervention.
For Arizona, this case also highlights a long-standing tension in health coverage: individuals and small groups seeking affordable insurance are often the first targets for questionable products.
Regulators try to keep that space clean by tightening rules around marketing, requiring clearer disclosures, and penalizing agents or brokers who steer customers toward unlicensed plans.
