Ohio Department of Insurance Director Ann Womer Benjamin ordered First Actual American Insurance Company (FAAIC) to cease and desist its illegal operation in the state of Ohio.
The order alleges that the Canby, Oregon-based insurer offered medical malpractice insurance to one or more Ohio doctors through an unsolicited facsimile that offered a free quote for medical malpractice insurance.
FAAIC is currently not licensed to transact business in Ohio, according to the department. The fax stated, “We [FAAIC] Are Saving Doctors 30% to 50% off current premiums” and “Save AT LEAST 30% ON INSURANCE PREMIUMS!” The Department received several inquiries about FAAIC from doctors who received this fax, which triggered the initial investigation.
“This company is not licensed to do business in Ohio and I want to commend our Department’s Enforcement Unit and Legal Division for their quick response and action on this case,” Benjamin said.
“Unlicensed activity will not be tolerated in Ohio, especially when its goal is to take advantage of vulnerable consumers.”
Under Ohio law, FAAIC may contest the cease and desist order through an administrative hearing to be held at the ODI April 29. This hearing will determine if the cease and desist order will become permanent.
FAAIC has been subject to similar actions by the insurance departments in Mississippi, North Dakota, Oregon and Georgia.
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