Commissioner Mike Yaworsky Cracks Down on Company Operating Without a Required License and Warns Consumers of Unlicensed Activity

TALLAHASSEE, Fla.- Florida Insurance Commissioner Mike Yaworsky is ordering an extended auto warranty company to cease business in Florida for operating without a required license. American Dream Auto Protect entered into motor vehicle service agreements with Florida residents without a license or approval from the Office of Insurance Regulation. To protect the public and reduce consumer disruption, American Dream must continue to administer in-force auto warranties in compliance with Florida law, allow consumers to cancel the warranty coverage and obtain a refund, and pay claims in accordance with Florida law. OIR is demanding American Dream to notify consumers by sending them a copy of the consent order and publish the consent order on American Dream's website to make sure consumers are aware.<_o3a_p>

OIR strongly encourages consumers to exercise due diligence when purchasing insurance or insurance-related products. To help consumers, OIR is issuing a new websitehighlighting unlicensed activity found by OIR. Commissioner Yaworsky urges consumers doing business with any company operating without a required license to consider switching business to appropriately licensed entities. When an entity operates without authorization, it not only violates state law but also puts consumers at significant financial risk, as unlicensed entities may not have the financial stability, reserves, or regulatory oversight necessary to guarantee claims payment.

"Floridians have a right to know that when they entrust an insurance company with their money, that the company is acting in good faith," said Chief Financial Officer Blaise Ingoglia. "There is no excuse for defrauding Floridians. I have made it one of my core missions to be an advocate for policyholders and I will continue to work with the Office of Insurance Regulation to hold bad actors accountable."

"The Office of Insurance Regulation takes reports of unlicensed activity seriously. Consumers should feel confident that their coverage purchased is legitimate and regulated," said Commissioner Mike Yaworsky. "I urge consumers to do their research before entering into a contract and use our Office's resources to guarantee products are from appropriately licensed entities. We will continue to blast any company that blatantly disregards state law and will strongly advise consumers to find a better option."

OIR issued and served American Dream with a Complaint to cease-and-desist from engaging in unauthorized and unlicensed business of motor vehicle service warranty agreements in Florida. The company reported nearly 900 in-force contracts and over $2.2 million in unearned written premiums. The company also unsuccessfully attempted to sell the remaining books of business. There are reportedly 600 in-force contracts remaining and 80% of the residual contracts are set to expire within the next 18 months.

In Florida, an unlicensed or unauthorized insurance entity refers to any person or business that engages in the business of insurance without first obtaining the necessary licensure or authorization from OIR. This includes selling, soliciting, negotiating, or advertising insurance products or insurance-related coverages-such as service contracts, extended warranties, or health benefit plans. OIR actively investigates reports of unlicensed activity. To view OIR's new consumer website and review recent unlicensed activity gathered by OIR, click here.<_o3a_p>

To view the Consent Order against American Dream, click here.

To search for licensed insurers and entities, visit OIR's active company database here.