Company Ordered to Cease Operations in Arkansas

August 30, 2002

Arkansas State Insurance Commissioner Mike Pickens issued a Cease and Desist Order to AMS Staff Leasing, NA Inc., a company that the insurance department alleges had been illegally offering workers’ compensation insurance in the state.

The department also stated that AMS Staff Leasing, based in Dallas, Texas, and its president Charles D. Wood, Jr. had been operating as an employee leasing firm in Arkansas without first obtaining the proper license to operate in that capacity. It accused the company of falsely claiming it secured workers’ compensation insurance and proceeding to offer workers’ comp coverage to Arkansas employers. The Order requires AMS and its president to immediately stop marketing unregistered, illegal, or unlicensed plans in the state.

“This Department is working diligently to ascertain which employers and the number of consumers that may be affected by the illegal activities of this company,” Pickens said. “We want to be sure those individuals and companies are informed that they do not have insurance so they can take the necessary steps to obtain the coverage they need.”

AMS has been ordered by the Arkansas Insurance Department to notify its clients, and all of its affiliates of the Insurance Commissioner’s order to cease and desist writing any business in the State of Arkansas. The Insurance Department is also making efforts to notify the company’s clients that they do not have insurance coverage.

Individuals or companies considering purchasing coverage through an employee leasing firm are encouraged to contact the Arkansas Insurance Department to verify the company is licensed in the State of Arkansas to sell the product being considered. Those interested in receiving this information may call the Department’s Property & Casualty Division at 501-371-2808 or visit the Department Web site at www.state.ar.us/insurance and click on the “Licensed Employee Leasing Firms” link. This link can be found on the Property & Casualty Division home page.

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