HARTFORD, Conn. – The dump truck that caused a fiery, chain-reaction crash in Avon that killed four people in July was not covered by liability insurance at the time, according to the trucking company’s insurer.

Bloomfield-based American Crushing and Recycling suspended its coverage for 12 tri-axle vehicles in January, leaving only comprehensive coverage on the vehicles, according to documents filed in U.S. District Court in New Haven by Acadia Insurance Co. of Westbrook, Maine.

Two hours after the July 29 crash, the trucking company – through another insurance company – asked Acadia to resume the liability coverage retroactively to July 1, but did not mention the accident, according to court papers.

American Crushing had received a $39,976 premium refund from Acadia when it suspended its coverages for liability, uninsured motorists, collision and auto medical payments, according to the court documents.

Chief State’s Attorney Christopher Morano said Friday he will launch a criminal investigation.

“These allegations are extremely disturbing,” Morano said in a statement. “The innocent victims of this horrific accident are now being subjected to the additional and unnecessary trauma, both emotionally and potentially financially.”

Acadia informed victims of the crash this week that it is requesting a court order stating it is not obligated to cover American Crushing’s old $1 million liability policy or its $2 million umbrella policy – both considered by lawyers to be far less than what is needed to cover potential legal claims from the crash.

“The reason the insurance company is doing this is to cut everything off right now and get a decision by the court saying the insurance company is not stuck in this matter,” said Eric Polinsky, a Hartford attorney representing a man injured in the crash.

Polinsky said he is upset state law does not require American Crushing and other commercial carriers to notify the Department of Motor Vehicles when coverage is suspended. Under state law, the DMV is notified when individuals have their motor vehicle insurance suspended.

“I think what the result is going to be is, mostly there is not going to be any insurance. This company is not going to be providing coverage for this accident,” said Polinsky, who would not identify his client. “And it’s sad to say, but the Motor Vehicles Department, the state, has to do a better job of protecting their citizens.”

DMV spokesman William Seymour said the agency will lobby the Legislature to close the loophole in state law and require verification of commercial vehicle insurance.

“We have no records of their insurance because there is no requirement that the insurance be reported to us,” he said.

Gov. M. Jodi Rell, who also vowed to propose legislation to close the loophole, asked the chief state’s attorney to investigate American Crushing for any possible criminal activity for allowing the truck to be on the road without liability insurance.

“The more I learn about this company, the more enraged and horror struck I become,” Rell said.

At about 7:38 a.m. on July 29, the 2000 Mack dump truck barreled out of control down Avon Mountain on Route 44 and smashed into 19 other vehicles – including a commuter bus – waiting at a traffic signal at the bottom of the hill.

Four people, including the driver of the truck, were killed. Four others were seriously injured. Police believe mechanical failure and possibly driver error caused the crash, which remains under investigation. The truck had a history of safety violations.

This week, Rell ordered the DMV to suspend the registrations of all trucks owned by American Crushing after one of its trucks was stopped last week for allegedly being overweight by more than 18,000 pounds.

A call to American Crushing was referred to the company’s lawyer, Hope Seeley. A telephone message seeking comment was left at her office.

Corinne Rebillard of New Hartford was a passenger on the commuter bus involved in the crash. She received a notice Wednesday in the mail about the company being uninsured.

“I’m extremely upset. I’m upset that they were uninsured or underinsured and I’m also upset they were underhanded about it,” Rebillard said. “It doesn’t sound like this trucking company is on the up and up, especially in light of what happened last week.”

Polinsky said the families of those killed or injured in the crash that want to make a legal claim will have to rely on their own uninsured motorist coverage. Typically, $20,000 is the minimum amount of coverage someone must carry, he said.

Elena Tomasi of Torrington, who was in one of the cars involved in the crash, has a $20,000 medical bill to pay. She said she hasn’t had a chance to let the bad news about the trucking company’s lack of liability coverage sink in.

“I was hoping I could get some compensation but it looks like I will have to pay out of pocket for the medical bill,” she said. “I just hope they’ll be out of business.”

Associated Press Writers Shelley K. Wong in Hartford and Matt Apuzzo in New Haven contributed to this report.