KUTV (9/12/13) reported during its “Get Gephardt” segment about a homeowner who purchased a home warranty from Sensible Home Warranty and then had his furnace die. The homeowner was told by the warranty company to find a repairman, pay the bill and then file for reimbursement. When the homeowner sent in the receipt for the $661 furnace repair, he did not hear back from Sensible Home Warranty. Gephardt, however, learned that the home warranty company was not allowed to conduct business in Utah because they did not have a proper license.
But Utah is not the only state in which Sensible Home Warranty was allegedly operating without a proper license. According to documents filed by the Oklahoma Insurance Commissioner, John Doak, Sensible Home Warranty LLC was operating without a license in that state, as well. The claim (case no. 13-0051-DIS) alleges Sensible Home Warranty did not file its 2012 Service Warranty Annual Financial Statement, which was due on or before May 1, 2012, and failed to file its 2012 Service Warranty License renewal before the due date. As such, the documents state, Sensible Home Warranty was “acting as a service warranty association in Oklahoma without licensure.”
The Commissioner found that Sensible Home Warranty’s failure to file its annual statement and failure to renew its license in Oklahoma, “are business practices that pose an imminent threat to the welfare of the residents of this state.” As such, Sensible was ordered to stop selling and renewing contracts in the State of Oklahoma.
In 2012, the State of Washington sent a “Cease and Desist” letter to Sensible Home Warranty, demanding that the company stop conducting insurance business in Washington because the company was not authorized to conduct insurance business in the state. The letter noted that Sensible Home Warranty had sold approximately 140 home warranty service contracts in the state since 2009.
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Licensing requirements for insurance and home warranty companies vary by state. For its part, KUTV’s report did result in the homeowner receiving his reimbursement, albeit months after he first filed his receipts.