Distinct Advantage Administrative Services Ordered to Stop Selling Vehicle Service Contracts

The Office of the Insurance Commissioner in Washington has ordered a Federal Way, Wash.-based company to stop selling unauthorized vehicle service contracts in the state.

The order names Distinct Advantage Administrative Services LLC, company principal Michael Phelps and former insurance agent Thomas L. Ross. Ross is a former Washington insurance agent whose license was revoked in March 2003. Nonetheless, he began marketing Distinct Advantage service contracts around October 2009 as an “agent” for the company, the OIC said.

None of the three are registered with Washington as a service contract provider.

Distinct Advantage sold at least 37 vehicle service contracts, totalling $26,468, through six car dealers. The contracts were not approved for sale in Washington. The forms state that Distinct Advantage is insured by Colonial American Casualty and Surety Co., but Colonial American has no record of any affiliation with Phelps or his company.

Source: OIC