Washington Insurance Commissioner Fines Company $100K for Operating Illegally *Centurion Insurance AFS*

Washington Insurance Commissioner Mike Kreidler fined First Premier Home Warranty Corp. $100,000 and ordered the New York-based home warranty company to stop conducting insurance business in Washington.

The cease-and-desist order notes that First Premier submitted a service contract provider application to the Office of the Insurance Commissioner in August of 2022, but never included the documents required to complete the process. Companies must be authorized by the OIC to transact or solicit insurance business in Washington.

A consumer with a home in Washington filed a complaint with Kreidler’s office after First Premier denied a claim for repairs to a refrigerator. Despite its service agreement stating it covered repair or replacement if any item became inoperable, First Premier denied the claim based on it being a “sealed system failure,” according to the OIC.

The consumer requested a policy refund of $1,830 and was offered a $725.99 credit, after a $1,649 “administrative fee.” The consumer then filed a complaint with the OIC.

The company informed OIC investigators that it sold 22 service contracts, received $20,859.22 in payments and paid $5,549.83 to consumers. First Premier has 90 days to request a hearing to contest the order.

Since 2001, Kreidler has assessed more than $40 million in fines, which are directed to the state’s general fund to pay for state services.

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Washington