Vehicle Warranty Company Shut Down for Allegedly
Operating as Unlicensed Insurance Company
July 21, 2010
A cease-and-desist order was filed against two people and their
company for supposedly selling insurance that was being made to
look like auto additive warranties without a license.
According to the Department of Insurance Prestige Administration,
Inc. acted as a unlicensed insurance company. The co-owners of Prestige
Administration, Inc., dba Autolife Rx, are being fined $5,000 for
each day that they were operating or five times the revenue received
from California consumers, whichever is greater.
It is alleged that they sold the insurance policies through car
dealerships who sold the packages to customers buying cars. In June
of 2009 the Department of Insurance denied approval for Prestige
Administration, Inc. to sell a radiator additive warranty. Since
the additive warrant was not approved it was automatically deemed
to be an insurance policy and therefore can only be sold my licensed
insurance companies with millions in net assets that meet specific
accounting and experience requirements, which the company did not
was issued by the California Department of Insurance.
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