According to the Associated Press, Acting Commission of Insurance David Parsons said last week that J. Gordon Transportation Services in Jemison has been operating the bogus program since August.
"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," Parsons told AP.
The department has ordered the company to stop selling the questionable insurance, which is allegedly provided by over 20 nationwide insurers. Parsons said the department is unsure whether any legitimate insurers are backing the program.
Parsons said there is information that indicates that Tri Continental Exchange
Ltd., an offshore company, may be the principal behind the program. He said Tri Continental has been accused of illegal insurance practices elsewhere.
Parsons added that truckers should beware of low premiums such as the ones offered by J. Gordon Transportation.
AP could not reach company officials for comment.