March 20, 2024

OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler has fined First Premier Home Warranty Corp $100,000 and ordered the New York-based home warranty company to stop conducting insurance business in Washington.

The cease-and-desist order (fortress.wa.gov) — issued March 5, 2024 — noted that First Premier submitted a service contract provider application to the OIC in August of 2022, but never included the documents required to complete the process. Companies must be authorized by the Office of the Insurance Commissioner to transact or solicit insurance business in Washington state. 

“We hold insurance companies and service contract providers to certain standards, both in how they gain approval to operate in our state and how they treat their customers,” Kreidler said. “Our laws and regulations are in place to hold accountable the companies that fail to operate within the law.”

A consumer with a home in Washington filed a complaint with Kreidler’s office after First Premier denied a claim for repairs to a refrigerator. Despite its service agreement stating it covered repair or replacement if any item became inoperable, First Premier denied the claim based on it being a “sealed system failure.”

The consumer requested a policy refund of $1,830 and was offered a $725.99 credit, after a $1,649 “administrative fee.” The consumer then filed a complaint with the OIC.

The company informed OIC investigators that it sold 22 service contracts, received $20,859.22 in payments and paid $5,549.83 to consumers. 

Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $40 million in fines, which are directed to the state’s general fund to pay for state services.

First Premier has 90 days from March 5 to request a hearing to contest the order.

For an insurance question or complaint, you may contact Kreidler’s consumer advocates online or by phone at 800-562-6900.