The Oklahoma Insurance Department reported that Insurance Commissioner Kim Holland has suspended the license of Covenant Home Warranty Corporation.
The action will stop the Tulsa company from soliciting, acquiring or issuing new service warranties or accepting premiums until further examination of their records. Holland is also ordering the company to pay all claims received before the suspension order.
The department said Holland took action against the company because of its failure to pay claims under its own service warranties and its lack of proper bonding as mandated by the Oklahoma Insurance Department. The company has provided home warranties for 10 years.
“This suspension is a result of Covenant Home Warranty Corporation’s failure to comply with the Oklahoma Insurance Department and their failure to respond to repeated attempts by this department to work with them,” Holland said. “At this point, it is my responsibility to protect any current or future contract holders.”
The Oklahoma Insurance Department has further ordered Covenant Home Warranty Corporation to provide all warranty-related business records for review by the department in their Tulsa office. The examination will help reveal the extent of any financial shortfall.
Contract holders or creditors with any questions about the suspended license of Covenant Home Warranty should call the Consumer Assistance Division of the Insurance Department at (405) 521-2991.
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