Department issues Cease and Desist Order to protect California consumers from unlicensed home warranty company
News: 2021 Press Release
LOS ANGELES, Calif. — The California Department of Insurance issued a Cease and Desist Order effective immediately for New Jersey-based company, Forever Home Service LLC, doing business as Harmony Home Warranty (Harmony). The Department’s Order alleges Harmony sold home warranty contracts in California without proper authorization from the Department or Insurance Commissioner Ricardo Lara.
The Department launched an investigation after receiving multiple complaints from consumers who purchased home warranty contracts from Harmony, a limited liability company organized in the state of New Jersey. Consumers reported that Harmony declined to pay claims and were unresponsive to phone calls and emails.
The investigation revealed that Harmony solicited business through the website www.harmonyhomewarranty.com, where consumers could provide general information online. Harmony then contacted consumers to provide a quote and collected credit card payments for home warranty contracts. Multiple consumers filed claims that were either declined or ignored. Consumers were also locked out of their online account on Harmony’s website when they tried to submit claims. As a result, consumers had to pay for the repairs or replacements out of pocket.
Consumers are advised to check the license status of any of the Department’s licensees and contact the Department at 800-927-4357 if they suspect they may be victims of fraud.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.