Oklahoma Regulator Says Unlicensed Home Warranty Company Not Paying Claims

The Oklahoma Insurance Department (OID) said it is actively investigating a home warranty company that it says has issued warranty policies in that state without a license and now is not paying claims.

The OID has received numerous consumer complaints alleging that Choice Home Warranty did not pay their home warranty service claims.

OID issued a cease and desist order to the unlicensed company in 2017. OID’s current investigation revealed that Choice Home Warranty issued policies without the required license and in violation of the cease and desist order.

A New Jersey-based company, Choice Home Warranty has solicited customers nationwide from its website, according to the OID.

The insurance department is currently processing consumer complaints and sending letters to the company demanding refunds be issued to the contract holders.

Consumers should call the OID first before buying a warranty service contract or insurance product to verify that a company is properly licensed in Oklahoma, the department said.

Service warranty companies are required to have an OID-issued license, to solicit, negotiate or sell home warranty service contracts in Oklahoma.

Source: Oklahoma Department of Insurance