Oklahoma Insurance Commissioner Kim Holland has fined National Home Protection Inc., which the state insurance department said has failed to respond to a previously issued emergency cease and desist order directing the company to stop selling insurance products in the state without a license.
Holland ordered the service warranty company to stop selling its products in the state and gave them 30 days to request a hearing. The company has failed to respond and is now subject to a $25,000 fine for each violation of the order.
“Our licensing procedures are in place to protect consumers from a loss due to insurer insolvency, fraud or illegal activity,” said Holland. “Before a company can be licensed in Oklahoma, the Insurance Department conducts a thorough background check of owners and officers. We also perform an extensive financial review to ensure there are adequate resources to meet statutory requirements and pay policyholder claims.
Holland recently took action against two other service warranty companies: Interstate Administrative Services Inc. and Automotive Warranty Solutions LLC.
The department said after a thorough review of Interstate Administrative Services’ financial statements, it found the company to be statutorily insolvent. Holland ordered the company to continue to pay claims but has prohibited it from collecting new premiums or soliciting new business.
Like National Home Protection Inc., Automotive Warranty Solutions was selling insurance products in the state without a license. Holland issued a similar cease and desist order against the company and has given them 30 days to comply.
Source: Oklahoma Insurance Department
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