Florida Insurance Commissioner Kevin McCarty has issued a cease and desist order shutting down a number of insurers for the unauthorized marketing and sale of automobile service warranty insurance products. The affected companies include Warranty Administration, Inc., SafeData Management Services, Inc., Consumer Direct Warranty Services and General Warranty Services.
McCarty’s order comes after the state’s Office of Insurance Regulation investigated General Warranty and found the company was marketing motor vehicle service warranty products through telemarketing and over the Internet for Warranty without a license. Warranty and SafeData both conducted business under the name Consumer Direct. Regulators said the companies sold contracts to nearly 3,000 consumers racking up $6 million in sales. In addition to the service contracts, Consumer Direct included a “Vehicle Protection Kit,” which included what they called a “scientifically formulated” product that increased the performance and life of the vehicle.
Regulators also alleged that several marketing agents were involved that were not authorized to sell products in the state. These include; First National Warranty LLC, Southern Warranty Trust, Endurance Warrant Services LLC and General Warranty Services.
“The OIR will not tolerate schemes that take advantage of consumers who purchase products in hopes of protecting their investments,” said McCarty.
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