A Fultondale company that has marketed medical malpractice insurance to physicians and hospitals has been ordered to terminate all activities in Alabama, Commissioner Walter A. Bell announced today.
The formal cease and desist order was filed against American Resource Trust of Fultondale.
"If you want to do business in Alabama, you must have a license to do business in Alabama," Commissioner Bell said. "It's the same way in the other 49 states."
"We've had an issue with medical malpractice insurance in this state, and it appears this company is trying to take advantage of a tough medical malpractice market and illegally sell its policies."
Commissioner Bell also reminded Alabama citizens to ask basic questions when seeking any kind of insurance:
- Is the company licensed to do business in Alabama?
- Has the policy that is being offered been approved by the Alabama Department of Insurance?
- Is the producer, or sales agent, licensed to do business in
Alabama?
"In the case of American Resource Trust, the answer to all three questions was no," Commissioner Bell said.
Commissioner Bell also sent notifications to the Alabama Hospital Association and the Medical Association of the State of Alabama regarding the order. If anyone has been approached by an American Resource Trust representative, then they should call the Alabama Department of Insurance.
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