Ken. Halts Sale of Unauthorized Med-Mal Insurance

July 7, 2003

The Kentucky Department of Insurance announced it has obtained a temporary restraining order against two entities that are alleged to have been marketing professional liability coverage to Kentucky physicians and medical facilities without proper authorization.

Judge William Graham of the Franklin Circuit Court issued the restraining order against Security Trust Insurance Company Ltd. and Ameristar Ltd. Security Trust and Ameristar are both located in Christiansted, St. Croix, Virgin Islands. According to court documents, Ameristar purports to be a subsidiary of Security Trust.

At least three physicians and one group of clinics in Kentucky have been sold professional liability coverage by these entities. Neither company has the necessary authorization to conduct insurance business in the Commonwealth, according to the department.

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