Insurance Commissioner Targets Companies

National Home Protection Inc., fails to respond to an Emergency Cease and Desist Order issued against the company for attempting to solicit insurance products in Oklahoma without a license, said Insurance Commissioner Kim Holland.
Holland ordered the service warranty company to stop selling its products in the state and gave them 30 days to request a hearing. The company has failed to respond and is now subject to a $25,000 fine for each violation of the order.
“Our licensing procedures are in place to protect consumers from a loss due to insurer insolvency, fraud or illegal activity,” said Holland. “Before a company can be licensed in Oklahoma, the Insurance Department conducts a thorough background check of owners and officers. We also perform an extensive financial review to ensure there are adequate resources to meet statutory requirements and pay policyholder claims.
“When Oklahomans purchase an insurance product they are entitled to feel confident it is from a reputable company that is able to meet its obligations and pay claims. I will not tolerate companies attempting to skirt our consumer protection laws and endanger our citizens.”
Holland recently took action against two other service warranty companies: Interstate Administrative Services, Inc. and Automotive Warranty Solutions, LLC.
After a thorough review of Interstate Administrative Services’ financial statements, the Oklahoma Insurance Department found the company to be statutorily insolvent. Holland has ordered the company to continue to pay claims but has prohibited it from collecting new premiums or soliciting new business.
Like National Home Protection, Inc., Automotive Warranty Solutions was selling insurance products in the state without a license. Holland issued a similar Cease and Desist Order against the company and has given them 30 days to comply.
The Oklahoma insurance Department consumer hotline is (800) 522-0071.

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