Warning to Physicians, Health Care Facilities

Contact: Ragan Ingram, Assistant Commissioner
334-241-4146

3/25/2003

An Oregon company that has been marketing medical malpractice insurance to Alabama physicians is under investigation, according to Commissioner Walter A. Bell.

First Actual American Insurance Company, headquartered in Canby, Ore., is not licensed to sell insurance in that state.  Oregon regulators took away that privilege in mid-March.  First Actual American also has offices in California.

"We are currently investigating First Actual American," Commissioner Bell said. "We believe that health care professionals and facilities should pay extremely close attention to what representatives of First Actual American have to say and what they offer."

"We have received consumer complaints regarding this company, and we are investigating these complaints thoroughly. We hope to have our investigation wrapped up in a matter of days."

Commissioner Bell says his standard advice to consumers is to ask three basic questions:

  • Is this 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?

Regardless of the outcome of the investigation, First Actual American will be liable for all claims on policies sold in Alabama.  The Alabama Department of Insurance asks those who have paid premiums to First Actual American to please contact the department.

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