Four Companies to Cease and Desist Selling Motor Vehicle Service Agreement Products in Florida
TALLAHASSEE, Fla. - Florida's Office of Insurance Regulation has issued an order to National Automotive Services Inc., Warranty Financial Inc. (aka Warrany Financial O.R.G. Inc.), Warranty USA, and Warranty Services to cease and desist transacting the unauthorized marketing and selling of motor vehicle service agreement products in Florida.
The investigation found that all companies except Warranty Services are registered corporations in Florida, but that none of companies holds a license to sell motor vehicle service agreements in the state. The Office of Insurance Regulation alleges in its order that in addition to selling insurance without a license, the companies' agreements with each other resulted in at least 50 customers receiving fraudulent bills.
"These companies are selling motor vehicle service agreements without a license, and are fraudulently billing customers," said Florida Insurance Commissioner Kevin McCarty. "Today's order will put a stop to their illegal practices."
Last April, the Insurance Commissioner of the State of Oklahoma issued an Emergency Cease and Desist Order against these companies for engaging in the unauthorized business of service warranty and indemnity agreements in that state.
Under Florida law a person or entity may not transact, administer, or market a service agreement either in the State of Florida or from the State of Florida unless it is authorized to do so under a license issued by the Office of Insurance Regulation.
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