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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Cease and Desist Orders issued to four companies allegedly selling home warranties without a license

News: 2021 Press Release

For Release: September 7, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Cease and Desist Orders issued to four companies allegedly selling home warranties without a license
Orders by Department of Insurance are intended to protect consumers from unethical practices and fraud

LOS ANGELES — The California Department of Insurance announced today that it has issued Cease and Desist Orders, effective immediately, to four companies who allegedly engaged in selling home warranty contracts in California without proper authorization. Under the Orders, the companies must immediately stop selling the contracts. To protect consumers from fraud, any company marketing and selling home warranty contracts to California consumers must be licensed by the Department of Insurance.

“California consumers place their trust in home warranty companies to provide coverage when something breaks,” said Insurance Commissioner Ricardo Lara. “Our licensing process is intended to protect consumers and ensure ethical standards and practices. Our team works diligently to help companies understand and meet these standards, and when they do not we take decisive action.”

The Cease and Desist Orders were issued to:

The Department launched an investigation after receiving a complaint from a consumer alleging that these unlicensed home warranty companies were marketing and selling their plans in California. 

During the investigation, Department investigators, using aliases, visited each of the companies’ websites and obtained multiple coverage quotes for California addresses. After initially receiving the quotes by emails, the companies then sent multiple follow-up emails to the investigators in attempts to sell the warranty contracts.

Consumers are advised to check the license status of a company before purchasing a policy and contact the Department at 800-927-4357 if they suspect they may be a victim of fraud.

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Media Notes:



The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $340 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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