The California Department of Insurance issued cease and desist orders to four companies allegedly engaged in selling home warranty contracts in the state without proper authorization. Under the orders, the companies must immediately stop selling the contracts.
Any company marketing and selling home warranty contracts to California consumers must be licensed by the CDI.
The Cease and Desist Orders were issued to:
- Complete Care Home Warranty, LLC
- Global Home Protection, LLC
- Fundamental America, LLC, doing business as Priority Home Warranty
- First Premier Home Warranty
The CDI launched an investigation after receiving a complaint from a consumer alleging that the unlicensed home warranty companies were marketing and selling their plans in California.
Department investigators using aliases visited each company’s website and obtained multiple coverage quotes for California addresses. After initially receiving the quotes by emails, the companies reportedly then sent multiple follow-up emails to the investigators in attempts to sell the warranty contracts.
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