December 23, 2009

Florida Orders Four Companies to Stop Selling VSCs

ARTICLE TOOLS        | E-MailPrintDiscuss Subscribe

Send an e-mail to colleagues Please fill out the form below to send a link to this story to your colleagues.
Your Name:	Your E-mail:
Colleagues' E-mail (Separate each address with comma):
Message: (Max. 500 chars.)
Enter the verification code as it is shown below without spaces. (Not case-sensitive) Enter Code: What's this? Image Code Verification Automated programs can't "read" the code you see in the box: only humans can. When you enter this code, it ensures that your order is going to a real person. If you don't see an image, make sure your browser is set to display images and try again. If you're not sure what the code is, make your best guess. If you're incorrect, you'll get another chance to enter a different code on the next screen. Close
CANCEL

TALLAHASSEE, Fla. — The Florida Office of Insurance Regulation issued on Dec. 21 an order to National Automotive Services Inc.; Warranty Financial Inc. a/k/a Warranty Financial O.R.G. Inc.; Warranty USA; and Warranty Services to cease and desist transacting the unauthorized marketing and selling of motor vehicle service agreement products in the state.

The office’s investigation found that all companies except Warranty Services are registered corporations in Florida, but that none of companies holds a license to sell motor vehicle service agreements in the state. The office alleges in its order that in addition to selling insurance without a license, the companies' agreements with each other resulted in at least 50 customers receiving fraudulent bills.

"These companies are selling motor vehicle service agreements without a license, and are fraudulently billing customers," said Florida Insurance Commissioner Kevin Commissioner McCarty. "Today's order will put a stop to their illegal practices."

Last April, the Insurance Commissioner of the State of Oklahoma issued an emergency cease and desist order against these companies for engaging in the unauthorized business of service warranty and indemnity agreements in that state.

The companies have 21 days to challenge the office’s action.

Under Florida law a person or entity may not transact, administer, or market a service agreement either in the State of Florida or from the State of Florida unless it is authorized to do so under a license issued by the office.

Consumers may determine if an insurer is licensed in Florida by visiting the company search tool on www.floir.com.

[ Request more info about this product/service/company ]

Request More Info Fill out the form below to request more info regarding the company/product/service featured in the story.
* Name:	Company:
* E-mail:	Phone:
Preferred contact method: EmailPhone
I would like info on the following:
Enter the verification code as it is shown below without spaces. (Not case-sensitive) Enter Code: What's this? Image Code Verification Automated programs can't "read" the code you see in the box: only humans can. When you enter this code, it ensures that your order is going to a real person. If you don't see an image, make sure your browser is set to display images and try again. If you're not sure what the code is, make your best guess. If you're incorrect, you'll get another chance to enter a different code on the next screen. Close
CANCEL