Licenses suspended for Arkadelphia insurers

April 20--The insurance licenses for local agent Berry Bishop and his agency, Alliance Insurance Group, have been suspended.

The emergency suspension order was administered Tuesday morning on allegations of fraudulence.

Citing "credible information," the Arkansas Department of Insurance in its filing alleges that Bishop, listed as a resident of Garland County, and Alliance, acting though information from four customers, created fake collateral policies for premium financing agreements. The collateral was used on as many as 17 premium finance agreements by way of the Bank of Prescott.

The amount from these transactions totaled more than $1,000,000.

The bank has reportedly substantiated the allegations by providing information where the money was transferred to the defendants' bank accounts.

Furthermore, the department is alleging that Alliance, having failed to maintain funds in trust for customers and instead converting them for personal use, does not possess the money sufficient enough to pay the premiums from whom they were accepted.

Alliance is unable to account for approximately $1,700,000 in insurance premiums. With Bishop's license suspended, documents note that it is unclear under what authority remaining employees will operate.

The emergency suspension order was signed by Allen Kerr, insurance commissioner for the State of Arkansas. As of this writing, no actual charges have been filed.

A call was made Thursday morning to Bishop requesting comment. Bishop stated that he is unable to comment at this time.

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