Ark. Commissioner Warns of Alleged Fraudulent Activity by Unlicensed Company

December 8, 2004

Arkansas State Insurance Commissioner Mike Pickens recently issued a warning for consumers to be on alert for potentially fraudulent insurance activity from a company called Nations Hazard Insurance and an individual using the names Michael Napadow and Michael Holland.

According to investigators with the Arkansas Insurance Department’s Fraud Investigation Division, a Web site, where Napadow is the suspected operator, is involved in issuing fraudulent commercial liability policies to individuals involved in the home inspection business.

Nations Hazard Insurance, which does not appear to be licensed to operate in the State of Arkansas, is reportedly selling fraudulent professional liability insurance, also called Errors and Omissions (E&O).

The insurance department noted that Nations Hazard Web site,, which is now apparently offline, stated that the company offers a plan, which “protects an individual or a documented entity (corporation, limited liability corporation, and/or documented partnership) from claims alleging failure or error in the providing of services that result in financial damages to their clients.”

While E&O coverage is a legitimate insurance product, the policies offered by Nations Hazard Insurance are not legitimate and the Fraud Division of the Arkansas Insurance Department is currently investigating the sale of these policies.

“We are especially concerned about this operation and the sale of these policies since a telephone number listed for the company is reported to contain a 501 area code,” Commissioner Pickens said. “We believe the company is actively soliciting business in the State of Arkansas.”

The Department’s Fraud Investigators have been told that in addition to the name Nations Hazard Insurance, Napadow and/or Holland has claimed to be associated with Hartford, Lloyds and Liberty Mutual insurance companies.

The investigation into Nations Hazard Insurance, Napadow and/or Holland is ongoing. Insurance consumers are cautioned not to purchase commercial liability polices offered through Nations Hazard Insurance or Michael Napadow or Michael Holland.

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