A warning has been issued to truckers in Alabama to be aware of an insurance program offered through J. Gordon Transportation Services, Inc., which is believed to have been operating since August.
Acting Commissioner of Insurance David Parsons stated; “Truckers may think they have insurance with such companies as Nationwide, Progressive, or AIG, when, in actuality, they may not even have insurance and are operating without any protection”.
According to an Order to Cease and Desist issued by the Department, the insurance program is being offered through J. Gordon Transportation Services, Inc., in Jemison, Alabama. However, there is information that indicates Robert L. Brown d/b/a Tri Continental Exchange Ltd., with an address outside the U.S., may be the principal behind the program. Brown and Tri Continental have been accused of illegal insurance practices in other jurisdictions.
According to the Order, the insurance is allegedly provided through a direct writers trucking program whereby over twenty insurers participate including Nationwide Insurance Company, Unum Insurance Company, Global Indemnity, AIG, Progressive and the Viking Group. The program claims to secure trucking with commercial liability insurance with admitted insurers. At this point the Department is unsure whether any legitimate insurance company or licensed surplus lines broker is actually involved. As of this date, the Department’s investigation has not been able to locate any licensed insurers underwriting or assuming the risk being written through this plan. Neither the program nor the policies have been filed or approved by the Department.
Truckers are being drawn to the insurance because of the low premiums, which, in itself is, usually a warning sign. Truckers need to be sure their insurance carriers are licensed.