California Insurance Commissioner Poizner filed a cease and desist in an effort to close several auto warranty companies allegedly operating illegally. PRESTIGE (auto product) warranty company of Phoenix, Arizona is the latest in the Commissioners’ latest crackdown on businesses operating without proper licensing. While Prestige attempted to file on 2 occasions for the appropriate licenses, the commissioner refused to grant the company an insurance license. The requirements to sell an insurance product in California, as in most states, is quite strict and involves huge financial commitments, bonds and insurance-backed ratings.
Last month, Poizner filed a cease and desist order against SafeData Management Services, Inc., d.b.a. Consumer Direct Warranty Services, Warranty Administration Services, Inc., and Warranty Administration Solutions, Inc for allegedly operating unlicensed insurance companies and using deceptive and illegal telemarketing.
Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
If you are a member of the public wishing information, please visit our (STATE OF CALIFORNIA) Consumer Services.
This information was provided by the Press office of the California Insurance Commission and is reprinted in abreviated form with their consent.
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*AUTOSAVE: a CHARTER WARRANTY CO. is not one of the companies noted in this article. Charter/Autosave is underwritten by an AM BEST A+ rated insurance carrier of the highest repute and does not practice direct telemarketing to consumers. Autosave is recommended by this website.
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Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at CAR DEALS
