Fla. shuts down home warranty service

TALLAHASSEE, Fla. – Oct. 14, 2009 – Florida Insurance Commissioner Kevin McCarty issued an Order (http://www.floir.com/pdf/DOC101209.pdf) to National Home Protection Inc. (National Home) to cease and desist transacting the unauthorized marketing and selling of home service warranty products.

Earlier this year, the Office of Insurance Regulation began investigating the company’s marketing and claims handling practices, and determined that it has sold, and continues to sell, home service warranty products in Florida without a license. The investigation also revealed that many of the claims made for household repairs or service were denied.

Florida is not alone in finding fault with National Home Protection Inc., and a number of other states have also investigated and taken action against the company.

“This company has been selling (home warranties) without a license all across the country,” says Commissioner McCarty. “Florida law clearly authorizes me to take action to stop the practices of unlicensed entities to protect consumers in this state.”

Last April, New York Attorney General Andrew Cuomo announced that his office had received 340 complaints against National Home Protection from consumers in at least 32 states. His office filed suit against National Home, a New York City-based company, alleging fraudulent business practices. Cuomo froze the company’s assets to ensure restitution for defrauded consumers.

While the Office of Insurance Regulation Order stops the unauthorized marketing and selling of home service warranty products, it also requires National Home to honor all policies in effect for the duration stated in the individual contracts. The company has 21 days to file a challenge to this action.

The Office of Insurance Regulation keeps a list of all Florida-licensed companies in a database. Consumers may check an insurer’s license status online at: http://www.floir.com.

© 2009 Florida Realtors®