press release
2023/05/05
Attorney General Tong announces enforcement action against fraudulent home insurance companies
(Hartford, Conn.) – Attorney General William Tong announced today that Integrity Admin Group, Inc. will pay $10,000 to end its misleading marketing practices.
An investigation revealed that Integrity Admin Group attempted to trick homeowners into paying for their services by sending misleading and high-pressure emails. The letter attempted to create a false sense of urgency with phrases such as “final notice” and “immediate action required.” They threatened “financial costs” and falsely warned that the homeowner would be “financially liable” unless the warranty was purchased. Some of the letters contained fake “vouchers” disguised as cashable checks.
In a settlement this week, Integrity Admin Group agreed to pay $10,000 and promised a series of injunctions to end its deceptive marketing practices. The Company must refrain from representing or implying in any way that it is affiliated with any mortgage lender or government agency. You have to stop making baseless statements based on the fact that a customer has a home warranty that is currently expiring. Stop referring to false deadlines and final notices. Also, you cannot send documents that look like checks.
“Integrity Admin Group tried to lure consumers into buying home insurance through a series of coercive lies. Our settlement today will stop these manipulative mailers and I send a strong warning to other companies involved in fraudulent activity. If you receive a home warranty notice containing such misleading claims, please do not respond and file a complaint with my office.” Attorney General Ton said.
A home warranty, also known as an extended warranty, is a type of service contract that promises to pay the homeowner if a component in their home needs to be repaired or replaced. Some home insurance companies may offer legitimate services, but consumers should be careful. Home warranties can cost hundreds of dollars a year, may not provide the coverage homeowners expect, may cover items that are already insured, and impose high deductibles and service fees. may be
Consumers considering a home warranty are advised to consider the following advice.
• Don’t confuse a home warranty with the homeowner’s insurance typically required by a mortgage lender. Homeowners insurance covers property damage or liability in the event of an accident. Home warranties generally only provide repair or replacement of certain items in the home, such as appliances.
• Consider whether you need a warranty. Do you already have a manufacturer’s warranty on big-ticket items such as appliances? Does the credit card you used to purchase the appliance provide a warranty?
• Determine if purchasing a warranty makes financial sense. What is the maximum amount the company will pay me when I need it? Do insurance, deductibles, and service fees exceed what it would cost to repair or replace the item yourself?
• View details. Are there any exclusions that reduce the usefulness of the warranty, such as wear and tear, manufacturer’s defect, or damage caused by natural disasters? Does the warranty provide replacement of damaged items or only repair? Can I choose a vendor?
• Look for consumer reviews about insurance companies. See the Better Business Bureau (BBB). Are other users reporting problems with requesting a claim payment from customer service or a warranty company?
• Above all, don’t pressure them to sign up on the spot.
Consumers can file complaints online with the Office of the Attorney General: https://www.dir.ct.gov/ag/complaint/
Assistant Attorney General Joseph Gasser, Legal Investigator Caylee Ribeiro, and Deputy Attorney General Michael Wertheimer, head of the Consumer Protection Section, assisted the Attorney General on the matter.
- twitter: @AGWilliamTong
- Facebook: CT Attorney General
Media contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer inquiries:
860-808-5318
attorney.general@ct.gov