Thursday, August 11, 2011
The Oklahoma Insurance Department has fined an unlicensed service warranty company $25,000 for violations of the Unauthorized Insurance Business Act and the Service Warranty Act.
Choice Home Warranty was fined $25,000 for operating without an Oklahoma Insurance Department license. In July 2010, a cease and desist order was issued to the company for similar violations of state law. However, the company continued to do business and currently does not hold an Oklahoma Insurance Department license which is required to do business in the state nor has it begun the licensing process.
Despite not having a license, the company entered into a service warranty contract in March with an Oklahoma consumer, a violation of both state law and the cease and desist order issued one year ago.
“One of my primary responsibilities as Insurance Commissioner is to ensure that every company and individual offering to sell insurance, including service warranties, in Oklahoma is properly licensed to do so,” Insurance Commissioner John Doak said. “This company has operated without a license for some time and has ignored the department’s previous order to stop doing business and become properly licensed.
“We will diligently pursue any company or individual that violates our laws and attempts to operate in this manner,” Doak added.
The company, which has offices in New York and New Jersey, has 30 days from the date the order was issued to request an administrative hearing. If it fails to do so, the order becomes final on the thirty-first day following issuance.
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ABOUT THE OKLAHOMA INSURANCE DEPARTMENT
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
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For more information contact:
Shawn Ashley
(405) 521-4525
(405) 568-6004
e-mail: shawn.ashley@oid.ok.gov