Jimmy Patronis announced an investigation by the Florida Department of Financial Services’ Division of Agent and Agency Services into nationwide vehicle service contract company CarShield for deceptive sales practices in Florida.
Full Article: https://www.mysuncoast.com/2024/08/21/cfo-jimmy-patronis-announces-investigation-into-carshield-deceptive-sales-practices/
The New Hampshire Insurance Department announced the passage and signing into law of SB515, legislation designed to enhance consumer protection through revised requirements for consumer guarantee contracts.
Full Release: https://www.insurance.nh.gov/news-and-media/new-hampshire-insurance-department-announces-passage-sb515-enhanced-consumer
Service Contracts, Limited Warranty, and Specialty Insurance and Service Programs
The site includes example uses for Service Contracts, Limited Warranties, Specialty Programs, and Service Programs, as well as example CLIP structures, profit participation options, and an example rate builder.
A CLIP is a great way to address regulatory and compliance requirements for Service Contracts. OEMs also use CLIPs to transfer risk off their balance sheets for their limited warranty programs. In addition, CLIPs are often an effective method to support service-oriented programs, including certain travel, event, and waiver programs.
View the site at https://contractualliabilityinsurance.com
ContractualLiabilityInsurance.com is a property of © Meramec Secure, Inc.
The British Columbia Financial Services Authority has issued Regulatory Statement RS 24-008: Product Warranty, Vehicle Warranty, and Automobile Insurance. This Regulatory Statement has implications for manufacturers, administrators, motor vehicle dealers, and third-party providers of motor vehicle service contracts.
Full Article: https://mcmillan.ca/insights/service-contracts-considered-automobile-insurance-in-british-columbia/
AG’s Office investigated after receiving consumer complaints: uncovered Midwest Car Search engaged in pattern and practice of deceptive sales, specifically targeting and exploiting Spanish speakers and people with low credit scores
Lawsuit filed in Anoka County asserts violations of Minnesota’s Used Car Law and consumer protection statutes; seeks millions in consumer refunds in addition to injunctive relief and penalties
Full Release: https://www.ag.state.mn.us/Office/Communications/2024/04/23_MCS.asp
Insurance and Safety Fire Commissioner John F. King announced that Choice Home Warranty is prohibited from selling or soliciting home warranty or service contracts in Georgia.
In March, a Cease-and-Desist order was issued against Choice Home Warranty for failing to meet the surety bond requirements established under Title 33 of the Official Code of Georgia Annotated. The company has failed to post the required bond in an amount of not less than $100,000.00 despite previous warnings. This requirement ensures that Georgia consumers are protected in case a warrantor cannot pay out claims.
Full Release: https://oci.georgia.gov/press-releases/2024-04-10/choice-home-warranty-prohibited-selling-warranty-and-service-contracts
The order was issued against First Premier Home Warranty Corp. for the unauthorized sale of home warranty contracts in Oklahoma.
Full Article: https://www.oid.ok.gov/release_040924/
First Premier Home Warranty Corp fined $100,000 and ordered the New York-based home warranty company to stop conducting insurance business in Washington.
Full Release: https://www.insurance.wa.gov/news/kreidler-fines-new-york-based-company-100000-operating-illegally
The enhanced penalties took effect on January 10th and will impact the Combating Auto Retail Scams (CARS Rule) and existing violations for unfair and deceptive acts and practices.
Full Article: https://complynet.com/resources/articles/enhanced-penalties-for-ftc-violations-in-2024
The Federal Trade Commission and the State of Connecticut are taking action against an auto dealer, its owner, and several key employees for systematically deceiving consumers about the price of certified used cars, add-ons, and government fees.