Unauthorized Home Appliance Insurer Fined $200K

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State Insurance Commissioner Mike Kreidler has fined LifeTime Home Warranty LLC $200,000 for acting as an unauthorized insurer, refusing claims without just cause, and failing to respond to inquiries, his office announced on Thursday.

“My office takes consumer protection seriously,” Kreidler said. “Washington residents should be able to receive the services they’ve paid for. If a company fails to provide it, we will hold them accountable.”

The order prohibits LifeTime from further insurance business or acting as a service contract provider in Washington, according to the Office of the Insurance Commissioner.

The company allegedly sold home appliance service contracts in the state without registering with the Office of the Insurance Commissioner and claimed to cover their repair, replacement, and maintenance, according to the OIC.

LifeTime was put under investigation after Kreidler received a complaint that it failed to refund a consumer for a canceled eight-year home warranty contract worth $3,592, the OIC reports.

The company confirmed the cancellation by phone, but never refunded the $3,592, the OIC alleges.

A second consumer alleged that LifeTime collected $7,650 in premiums from their plan despite denying or failing to respond to five separate claims, the OIC reports further.

Eight similar complaints were filed against LifeTime in 2022 and 2023, OIC officials say.

Per state law, insurance companies must acknowledge they’ve received a claim within 10 working days.

LifeTime has 90 days to respond to the charges and request a hearing, the OIC reports further.