ARK. WARNS OF POSSIBLE FRAUD:

Arkansas Insurance Commissioner Mike Pickens recently issued a warning about potentially fraudulent insurance activity from a company called Nations Hazard Insurance and an individual using the names Michael Napadow and Michael Holland. According to investigators with the Arkansas Insurance Department’s Fraud Investigation Division, a Web site that Napadow supposedly operated has been involved in issuing fraudulent commercial liability policies to individuals involved in the home inspection business. Nations Hazard Insurance, which is not licensed to operate in the State of Arkansas, reportedly has been selling fraudulent professional liability insurance, also called Errors and Omissions (E&O). The insurance department noted that Nations Hazard Web site, www.nationshazard.com, which seems now to be offline, stated that the company offered a plan that it said “protects an individual or a documented entity (corporation, limited liability corporation, and/or documented partnership) from claims alleging failure or error in the providing of services that result in financial damages to their clients.” While E&O coverage is a legitimate insurance product, the policies offered by Nations Hazard Insurance are not legitimate and the department’s Fraud Division is currently investigating the sale of these policies. The operation was linked to a telephone a number containing a 501 area code, the department said. In addition to Nations Hazard Insurance, Napadow and/or Holland allegedly has claimed to be associated with Hartford, Lloyds and Liberty Mutual insurance companies. The investigation into Nations Hazard Insurance, Napadow and/or Holland is ongoing.

Topics Fraud Arkansas Professional Liability