Strategic Limited Partners LP will shut down all insurance-related operations in Minnesota by Dec. 31, 2025.
The company struck a settlement with the state Department of Commerce after investigators concluded it sold unlicensed health coverage.
The agreement forces the firm to pay outstanding claims, notify every Minnesota customer of its exit, and deliver proof of repayment to regulators.
On top of that, regulators issued a $290,000 civil penalty. $250,000 of it stays suspended if the company complies and reimburses consumers as promised.
The investigation painted a messy picture. More than 1,700 unauthorized health plans were sold.
Some buyers thought they were speaking with MNsure representatives and signing up for coverage through Minnesota’s official exchange. That wasn’t the case.
Instead, the company told policyholders they were becoming “limited partners” and claimed federal law governed their coverage, not state insurance rules.
Reality cut sharper. Providers rejected claims outright, and in many cases, the company flatly denied them.
Commerce officials called it a warning shot. Assistant Commissioner of Enforcement Jacqueline Olson said as open enrollment begins Nov. 1, Minnesotans should view this case as a reminder: unlicensed insurers won’t get a free pass.
Her words were blunt – the state won’t allow outfits that sidestep the law to put residents at risk.
