Arkansas Suspends Licenses of Agent, Agency in Insurance Fraud Investigation

Arkansas has suspended the insurance licenses of an agency and its owner amid allegations of insurance fraud totaling more than $1 million.

The Arkansas Insurance Department reported that Insurance Commissioner Allen Kerr suspended the licenses of Berry Bishop and Alliance Insurance Group of Arkadelphia alleging premium financing fraud and pocketing customer premiums for personal use.

An order dated April 17 alleges that Berry and Alliance Insurance defrauded the Bank of Prescott of that amount by forging at least 17 premium financing agreements. Information from four existing customers was allegedly used to create “non-existent insurance policies for collateral for the premium financing agreement,” according to the order.

Additionally, Bishop and Alliance Insurance Group are alleged to have converted to personal use about $1.7 million in insurance premiums received from customers. That amount was not kept in trust for the payment of premiums on behalf of those customers and Alliance Insurance Group does not have the funds to pay those customers back, the order states.

According to the insurance department, Bishop no longer controls or manages Alliance Insurance Group. The order additionally states that “it is unclear under what authority the remaining employees are making managerial and financial decisions.”

Arkansas Business reported that the agency has 21 employees and was in the process of being sold when the Commissioner’s Order was issued.

Topics Fraud Agencies Arkansas