Auto Warranty Firms Shut Down in Florida

December 22, 2009

Florida insurance officials have shut down four firms selling motor vehicle service warranties for being unlicensed.

Florida Insurance Commissioner Kevin McCarty announced that the Office of Insurance Regulation has ordered National Automotive Services Inc., Warranty Financial Inc. (also known as Warranty Financial O.R.G. Inc.), Warranty USA and Warranty Services to stop marketing and selling of motor vehicle service agreement products in Florida.

According to OIR, all companies except Warranty Services are registered corporations in Florida, but none of companies holds a license to sell motor vehicle service agreements in this state.

The OIR alleges that in addition to selling insurance without a license, the companies’ agreements with each other resulted in at least 50 customers receiving fraudulent bills.

Last April, Oklahoma insurance regulators also found these companies were engaging in unauthorized sales in their state.

The companies have 21 days to challenge the Florida action.

Topics Florida Auto

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