Exotic Warranty Co. Put Into Receivership

Exotic Warranty Company has been ordered into receivership for purposes of liquidation by Judge Thomas H. Bateman III of the Second Judicial Circuit Court in Leon County and the Florida Department of Financial Services named Receiver.

A Florida corporation since January 2003, Exotic was headquartered in Bradenton, Florida. Investigation by the Florida Office of Insurance Regulation and the Florida Department of Financial Services discovered the company was selling motor vehicle service agreement contracts (“warranties”), an insurance product it was not licensed in Florida to sell.

At the time of liquidation, the company provided car, boat, and RV warranties to more than 1,000 warranty owners in at least 43 states and four foreign countries. By court order, the warranties are cancelled effective April 12, 2006. The Receiver is sending notices of the liquidation proceeding and warranty contract cancellation to all known warranty owners and the dealerships that handled sales of these contracts. Currently, the Receiver is aware of 10 claims submitted to Exotic for warranty coverage. As a result of the April 12, 2006 cancellation, certain warranty owners may be entitled to a return of some of the contract price they paid for coverage. There is no guaranty association coverage for claims arising under either unauthorized insurers or motor vehicle service agreements.

A copy of the liquidation order and additional information regarding Exotic and the receivership process may be found at www.floridainsurancereceiver.org.

Source: Department of Financial Services

Topics Florida