BREAKING: Arkansas Insurance Commissioner Commits to Investigate “Middleman” Practices in Historic Meeting with ATCP
“I have a lot of questions about the practice [of third-party middlemen], and I will be looking at it here in Arkansas… Please don’t hesitate to call me if you have any questions.”
In a massive win for the tree care industry, the ATCP leadership team met directly with Arkansas Insurance Commissioner Jimmy Harris this week. The meeting marked a significant turning point in our efforts to bridge the gap between contractors and regulators. Commissioner Harris was incredibly generous with his time and displayed a genuine desire to understand the challenges our members face daily. He was eager to listen to our board members, including President Joe Whitledge, Vice President Stephan LeBlanc, and Board Member Mark Goodpasture, as they described the reality of emergency tree work.
Exposing the “Middleman” Scheme
The highlight of the meeting came when Commissioner Harris himself raised concerns about third-party administrators, or “middlemen,” who sit between insurance carriers and tree companies. He noted that he has been looking into these operators and has serious questions about their practices. Our team confirmed that these entities often secure caps with carriers while forcing contractors to work for unsustainable rates. Mark Goodpasture explained that this practice can amount to pricing collusion, while Joe Whitledge shared a shocking example where a middleman paid a contractor only $1,000 on a claim where the carrier paid out $9,000.
The Commissioner made it clear: he is going to look into these practices in Arkansas. This is exactly the kind of regulatory ally our industry has been waiting for. It is refreshing to see a government official who is proactive and willing to ask the tough questions to protect both the policyholder and the small business owner.
Defining Professionalism and Value
Beyond the middleman discussion, the team had a productive dialogue about the true cost of doing business. Joe Whitledge and Mark Goodpasture educated the Department on why emergency services carry a premium, citing the millions of dollars in equipment, such as cranes, and the high cost of compliant, safe labor. We clarified that while price gouging is never acceptable, fair compensation for high-risk, immediate-response work is essential.
Commissioner Harris agreed that “information is key” to ensuring all parties understand what is expected. Stephan LeBlanc added that it is the contractor’s responsibility to be open and honest with homeowners about billing structures, comparing emergency tree work to the difference between a scheduled doctor’s visit and an emergency room trip.
A New Alliance in The Natural State
This meeting established a direct line of communication between the ATCP and the Arkansas Insurance Department. Commissioner Harris explicitly invited the ATCP to serve as a resource for his office moving forward. By offering our expertise for free, we can help the state differentiate between bad actors and professional companies, ensuring that consumers are protected without punishing legitimate businesses.
This is just the beginning. With allies like Commissioner Harris who are willing to investigate unfair “middleman” practices, we are paving the way for a fairer, more profitable industry for all our members. The ATCP is working for you, and the results are starting to show.
Join the Movement
We are fighting for fair regulations and exposure of unethical practices across the nation. Don’t sit on the sidelines while we change the industry.
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