International Schools Services Inc. places teachers in foreign lands where often education is scarce. So when those educators get sick overseas, the last thing they want or expect is a health insurance hassle.

The nonprofit company from Princeton, New Jersey, picked AAUG Insurance Co., whose founder lives in Pembroke Pines but based his company on the island of Tortola in the British Virgin Islands. AAUG sent teachers checks that bounced, refused to pay claims and when ordered to do so by a federal judge failed to reimburse forensic expenses, International Schools Services Inc. claimed in a 2010 lawsuit.