An Oregon 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 First Actual American Insurance, which is headquartered in Canby, Ore., and also has offices in Victorville, Calif.
“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.”
Alabama becomes at least the third state to order First Actual American to terminate activities in the state. Oregon and Georgia regulators have done the same. In March, Commissioner Bell issued a warning to the state’s physicians and hospitals to be on alert from solicitations from First Actual American because it was under investigation. The Alabama Department of Insurance is asking physicians and hospitals that have paid premiums to First Actual American to contact the department.
Commissioner Bell also reminded Alabama citizens to ask basic questions when seeking any kind of insurance:
-- Has 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
“In the case of First Actual American, the answer to all three questions was ‘no,’” Commissioner Bell said.