The Arkansas Insurance Commissioner this week suspended the license of an insurance agent and his agency after the agent was accused of fraudulently obtaining bank loans and converting premiums to personal use.

Alliance Insurance Group, based in Arkadelphia and Hot Springs, offered business insurance, including workers' compensation coverage. The commissioner suspended its license Tuesday, along with the license of agent Berry Bishop, according to news reports and the order of suspension.

The order alleges that Bishop and Alliance created phony insurance policies to be used as collateral on finance agreements with an Arkansas bank. About $1.7 million in premiums also cannot be accounted for, the order said.

The agency was facing insolvency and was up for sale, news reports said.