Two entities that were reportedly engaged in the motor vehicle service agreement business have been ordered to immediately cease operations, in Florida, and a licensed agent has been ordered to cease business related to the two entities.
Warranty Gold, Ltd. (Warranty), of Austin, Texas, has allegedly been found to be marketing motor vehicle service agreements without a license and was ordered to cease operations. Recently Warranty filed a petition for Chapter 11 Bankruptcy, in Texas and has reportedly asked the court to release Warranty from its obligations related to its service agreements issued prior to June 7, 2003. The bankruptcy court has set a Dec. 8, 2003 deadline for contract holders to file written objections to Warranty’s request.
National Warranty Insurance, RRG (National), of Lincoln, Nebraska and the Cayman Islands, has allegedly been found to be out of compliance with the financial requirements of the their registration in Florida, and has been ordered to cease operations. National had reportedly partnered with Warranty in some of the motor vehicle service agreements that were sold in the state.
Ceco Management Company, of Austin, Texas, is licensed to market auto service agreements in Florida and operates as warrantygold.com. Ceco has been ordered to cease marketing the service agreements of Warranty.
Director of the Florida Office of Insurance Regulation Kevin McCarty has ordered Warranty to notify their policyholders of this action and to provide an accounting of all outstanding claims.
McCarty cautioned Floridians to verify that warranty service companies are authorized to transact business in the state: “As with any insurance entity, please verify that they are licensed before purchasing any coverage.”
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