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 meet.

A release was issued by the California Department of Insurance.

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