Jeep Wrangler 2021
Credit: Jeep

November 15, 2021 – SACRAMENTO, California – The California Department of Insurance issued Order to cease and desist and to justify in effect immediately after Opulent Marketing, Inc. doing business as Infinite Auto Protection (Infinite Auto) for allegedly illegally selling Vehicle maintenance contracts (VSC) to 25 California consumers across the state.

Stop and Desist and Show Show Orders Alle Infinite Auto was not licensed by the California Department of Insurance and improperly denied claims, illegally sold contracts they did not first file directly from the Consumer Department and had not used a back-up insurer. . Infinite Auto billed consumers a total of $ 58,216.

“Consumer protection is our number one priority”, California Insurance Commissioner Ricardo Lara said. “Californians depend on their cars as part of their daily life. Any insurance company that operates illegally or attempts to deceive consumers will suffer the consequences. “

Under the ordinances, Infinite Auto must immediately cease selling VSCs in any capacity and cease to act as an insurance agent or producer or in any other capacity in the State of California for which it does not. does not hold a valid license, permit or certificate of authority. and show why a penalty of $ 5,000 per day should not be imposed.

Typically, VSCs, often referred to as “extended warranties,” are offered to consumers by car dealerships when they purchase a car. Most VSCs generally cover repairs due to mechanical failure. Others offer coverage for routine services, such as oil changes and tire rotations, or other services such as paintless dent removal, window or key replacement, or tire repair. and wheels.

VSCs can only be legally sold to Californians when specific criteria are met, which Infinite Auto has failed to do, namely:

1) VSCs may only be sold through auto and personal watercraft dealers licensed by the California Department of Motor Vehicles. Selling directly to a consumer is illegal.

2) Each VSC must be deposited with the Ministry before it can be sold.

3) The companies responsible for the payment of claims on the VSCs must be approved by the Ministry, unless the company is a manufacturer, distributor or dealer of vehicles.

4) These businesses must carry pre-approved ministry back-up insurance insuring every VSC they sell, unless they receive an exemption from the ministry by proving that their business has a net worth of at least $ 100 million. of dollars.

Consumers should not purchase these “extended warranties” over the phone or the Internet and should always verify that the company is licensed in California before purchasing. They can check the license status on the ministry website here.

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