California Department of Insurance Orders Refunds over Bogus Mailers

An insurance company offering home warranties must refund Californians who were reportedly deceived by a misleading mailer sent to hundreds of thousands of consumers.

According to an investigation by the California Department of Insurance, Response Indemnity Company of California worked with an unlicensed marketing company that mailed a “final notice” to consumers falsely warning that their home warranty was expiring.

CDI actions required Response Indemnity to allow consumers to cancel the home warranty and receive a refund if they purchased the warranty because of the mailer.

The CDI served an order to show cause to Response Indemnity after discovering it had entered into an agreement with Integrity Admin Group Inc., an unlicensed marketing company, that resulted in fake home warranty brand names and the mailing of “final notice” mailers to hundreds of thousands of California consumers.

The fake brand names reportedly included Home Warranty Direct, Home Warranty Resolutions, Home Warranty Solutions, New Home Warranty, and Like New Home Warranty. The CDI served a cease and desist order to Integrity Admin Group.

Topics California