Florida Insurance Commissioner Orders Three Entities to Cease and Desist Sale of Unlicensed Products
| Florida Insurance Commissioner Orders Three Entities to Cease and Desist Sale of Unlicensed Products |
| Tuesday, February 16, 2010 |
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Contact:
Jack McDermott Brittany Benner
850-413-2515 850-413-2515 Jack.McDermott@floir.com Brittany.Benner@floir.com TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty yesterday announced the Florida Office of Insurance Regulation (Office) has issued cease and desist orders to three entities, including their subsidiaries, for the unauthorized sale of warranty products and service agreements. These companies include an order to National Home Protection, an order to Nationwide Home Warranty, and an order to National Automotive Services.
Office investigators determined National Home Protection and Nationwide Home Warranty conducted home and service warranty transactions in Florida without a license. Investigators also found National Automotive Services, Inc. and its subsidiaries (Warranty Financial Inc., Warranty Financial O.R.G. Inc., Warranty U.S.A., and Warranty Services) sold motor vehicle service agreements without a license.
“I commend our investigators for their work in halting the unlicensed sale of warranty products and service agreements in the State of Florida,” remarked Commissioner McCarty. “The Office is committed to protecting Florida consumers from purchasing products that are sold by unlicensed entities that do not comply with Florida law.”
The entities are required to submit letters of certification, within 30 days, stating their company no longer provides services in Florida. The orders also require that the companies honor and fully service all valid claims and fulfill their contractual obligations.
Consumers may determine if an insurer or warranty company is licensed in Florida by visiting the Company Search tool on www.floir.com.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. ###
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Where To Do A Recall Search For Your Vehicle
If you’ve ever wondered if your vehicle had an open recall on it and were unsure, now you’ve got a way to do it, as long as your automaker makes it easy for you.
Here’s the web site pages for some automakers that make checking up on recalls fairly simple.
A few automakers make it easy to check the current recall status of vehicles. We’ll keep a list going here. If you find any others, post the information and we’ll add it to the list.
Chrysler
http://www.chrysler.com/en/owners/
Daewoo
http://www.daewoous.com/Recalls.aspx (Must be a registered user)
Dodge
http://www.dodge.com/en/owners/
Ford
http://www.ford.com/owner-services/maintenance-service/recall-information
Jeep
http://www.jeep.com/en/owners/
Lincoln
http://www.ford.com/owner-services/maintenance-service/recall-information
Mazda
http://www.ford.com/owner-services/maintenance-service/recall-information
Mercury
http://www.ford.com/owner-services/maintenance-service/recall-information
Volvo
http://www.ford.com/owner-services/maintenance-service/recall-information
Safety Recalls November 2008
The National Highway Traffic Safety Administration released the November 2008 list of safety related recalls. We have the list for you. Click here.
Safety Recalls October 2008
The National Highway Traffic Safety Administration released the October 2008 list of safety related recalls. We have the list for you. Click here.
Dealership Closings and Your Warranty
Dealerships seem to be shutting their doors in record numbers this year. The economy, gas prices and the credit situation are putting a tight squeeze on dealerships and those that were on the edge are being forced to close. Automotive News reports that 226 GM dealerships have closed this year through the end of August and quotes a GM executive as saying the total by the end of the year could be 350 to 400.
News stories about individual dealerships closing have been splashed on TV and in local newspapers. GM’s largest Chevrolet dealership, Bill Heard Enterprises, that owns 13 dealerships across the country abruptly closed all their locations on Tuesday, September 23rd.
Consumers are worried that their warranties won’t be honored. As far as factory warranty coverage goes, there’s no need to worry. All the manufacturers will honor their factory warranty at any of their franchised dealerships. The factory warranty is not just for one dealership. With all the closings though, you may have a more difficult time getting into the next closest dealership for warranty work because everyone will be rushing in to get warranty work performed.
You may have to do some legwork if you have a used car warranty or bought a service contract through a dealership that is now closed. If the used car warranty or service contract is backed by a separate company, contact them to put your mind at ease and find out how the closure could impact you. If the warranty is one offered by the dealership with their name on it, I strongly suggest you look over your contract. Find the name of the insurance or service contract company that’s backing it and call them as well to find out what is going on. It’s better to do it now than wait until you need a problem repaired.
At the rate closures are going, we could see a very different situation with dealerships in the next year or two. There will be fewer dealerships around. The drop may be far more significant than in past years. You could be driving much further to get your warranty repairs done.
Volvo Now Offering Free Factory Scheduled Maintenance
Free maintenance had become out of favor in the past few years. A few automakers had dropped their offering as a cost saving measure.
But it seems Volvo sees value in offering free scheduled maintenance.
Coverage for scheduled maintenance is being advertised as 3 years or 36,000 miles, whichever occurs first but that’s not quite the case.
The first four regularly scheduled maintenance service will be covered. Those are at 7,500, 15,000, 22,500 and 30,000 miles. The 37,500 mile scheduled maintenance is the first the customer has to pay for.
This applies to 2009 model year Volvos sold in the U.S.
Heritage Warranty Is In A Legal Tangle With South Carolina
Risk Retention Reporter newsletter is reporting that Heritage Warranty is in some kind of legal battle with South Carolina.
In the highlights of their August 2008 issue it mentions that court documentions filed by the director of the South Carolina Department of Insurance in a case against Heritage Warranty RRG (Risk Retention Group) have been sealed.
No other information is available at the moment. If you want to see highlights of the Risk Retention Report article, click here and make certain you’re looking at the highlights for the August 2008 issue.
Attempts to get a comment from either Heritage Warranty and South Carolina Department of Insurance have been fruitless. If someone from either Heritage Warranty RRG or the South Carolina Department of Insurance would like to talk to us to give us their side of the story, just drop us an email so we can talk. Click on the Contact link at the top of the page to find out how to get a hold of us.
BMW Issues Warranty Extension
In parallel with a recall on the same part BMW is issuing a warranty extension on the front passenger seat occupation detection mat.
The recall involves some 2006 3-Series (Sport Seat), 2004 to 2006 5-Series (Standard and Sport Seat), and 2004 to 2006 X3.
The repair will involve reworking the mat so that an external force will not cause it to crack.
The warranty extension involves the vehicles included in the recall and 2006 6 Series, 2006 3-Series (Standard Seat), 2004 to 2005 Z4, 2004 to 2006 7-Series, 2006 X5, and 2004 to 2006 5-Series (Comfort Seat). The warranty extension will increase the coverage for the part to 10 years with no mileage limitation but will only cover the mat for cracking.
General Motors Increases Certified Pre-Owned Warranty
Facing tough times, GM is looking to increase the sales of certified pre-owned vehicles with changes to the program.
Warranty coverage will go up to 12 months or 12,000 miles, whichever occurs first from the current 3 months or 3,000 miles, whichever occurs first. Warranty coverage will be bumper to bumper including roadside assistance and courtesy transportation minus coverage for wear items. The warranty has no deductible and is transferable.
This only applies to Buick, Chevrolet, GMC, Pontiac and Saturn vehicles. Cadillac, Saab and HUMMER have their own certified pre-owned programs that already offer additional warranty coverage.
The new warranty coverage and other changes will become effective on September 13, 2008.
Currently vehicles that are either current model year or from the past 5 model years and less than 60,000 miles are eligible to be certified. Once the enhancements to the program kick in, vehicles that are either a current model year vehicle or from the past 5 model years and less than 75,000 miles are eligible for certification.
For vehicles that are certified but still within the new vehicle warranty period, the warranty coverage will be extended 12 months or 12,000 miles beyond the new vehicle warranty period. For Chevrolet, GMC, Pontiac, Saturn, and Buick (up to 2005 model year), coverage would go from 3 years or 36,000 to 4 years or 48,000 miles from the original in-service date. For 2006 to current Buicks, the coverage would go from 4 years or 50,000 miles to 5 years or 62,000 miles.
Vehicles that are certified outside of the new vehicle warranty period, the coverage will receive a flat 12 months or 12,000 miles from the date the vehicle was sold as certified pre-owned.
GM vehicles certified and sold on or after March 5, 2007 also receive a 5 year/100,000 mile, whichever occurs first, powertrain warranty along with roadside assistance and courtesy transportation.
There is one hitch to the program. In some cases, a vehicle that is sold as certified between 4 and 5 years since the original in service date will go through a wild ride in coverage.
Up to that five year point, you will get the 12 month/12,000 mile bumper to bumper coverage along with the 5 year/100,000 mile powertrain coverage, roadside assistance and courtesy transportation. But somewhere along the line, during that 12 month coverage, the 5 year/100,000 mile powertrain coverage will come to an end. It could happen two months into your ownership of the vehicle or eight months or any other point in time during the 12 months depending on when the vehicle was sold to the original owner.
For most of the GM Certified Pre-Owned vehicles, they will receive roadside assistance and courtesy transportation for the initial 12 months/12,000 miles and will also receive it as long as they’re within the 5 year/100,000 mileage coverage period. The only difference is, courtesy transportation will be available for bumper to bumper repairs during the 12/12 but only for powertrain warranty repairs after the expiration of the 12/12 coverage but within the 5/100 time period.
You will have to ask your dealership what the original in-service date is when you purchase the vehicle to really know what coverage you will receive and how long it will last.
This isn’t a new hitch. It’s been one that has been part of GM’s Certified Pre-Owned program since the 5 year/100,000 mile coverage was introduced in March 2007.
It’s expected this enhancement to the Certified Pre-Owned program will help with the residual values of vehicles as they come off lease so GM will see an additional benefit and lessen their losses on those vehicles turned in after the lease expires.
Don’t get me wrong. The GM Certified Pre-Owned program is a great program and one that will give you peace of mind when buying a vehicle. The increase in warranty coverage is a big boost but you do need to understand the ins and outs of the program to get the greatest benefits from it.
Porsche Strengthens Certified Pre-Owned Warranty
Beginning August 1st, consumers that purchase a Porsche Certified Pre-Owned vehicle will have a stronger warranty than has previously been offered.
Most information out there touts the extended warranty coverage that Porsche is offering. Actually, the time and mileage coverage is the same as it has been since the program started in June 2003.
The change comes in the parts covered by the new, improved warranty.
The prior parts coverage was structured more like you would see from a service contract.
The new parts coverage mirrors the coverage you would get with the new-vehicle warranty.
Although this is the same as it was prior, here is a rundown on the time and mileage coverage offered with the Porsche Pre-Owned program.
For vehicles certified outside of the new-vehicle warranty, the coverage will be for 2 years or 50,000 miles (80,000 kilometers), whichever comes first, from the time the vehicle was sold as pre-owned.
For vehicles certified during the new vehicle warranty period, the coverage will be for 6 years or 100,000 miles (160,000 kilometers), whichver comes first, from the the original sale of the vehicle.
It’s a nice upgrade and one that will help eliminate any confusion in coverage.
Gregg Tompkins has been working
in the automotive industry for
21 years focusing on warranty
administration. He is bringing
his knowledge and insight of
warranty to the public through
this blog.


