Firm Told to Stop Selling Med Mal Liability in Ga.

April 4, 2003

Georgia Insurance Commissioner John W. Oxendine ordered First Actual American Insurance Company to stop marketing medical malpractice liability in his state. Oxendine said the company is not licensed or authorized to sell insurance in Georgia.

Under the order, First Actual American Insurance; Little Shell Pembina Band of North America; Zachary Betts of Victorsville, Calif.; Ronald K. Delorme of Bismarck, N.D.; and Kenneth Shipley of Tustin, Calif. are required to immediately cease and desist their insurance operations in Georgia.

The insurance commission said First Actual American is alleged to be headquartered in Canby, Ore. It has never been licensed or authorized in the state.

“These unlicensed companies are targeting doctors and hospitals that may be having difficulty obtaining medical malpractice insurance because of the insufficient number of companies writing malpractice policies in Georgia,” Oxendine said.

An investigation revealed that First Actual American was offering to sell med mal liability insurance through fax solicitations to medical professionals.

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