Florida Orders American Dream Auto Protect to Halt Policies Due to Non-Compliance
Florida regulators have ordered American Dream Auto Protect, an auto extended warranty company, to halt issuing policies in the state due to regulatory non-compliance. The Florida Office of Insurance Regulation (OIR) discovered that American Dream was entering agreements without the necessary licensing and approval, highlighting significant gaps in regulatory compliance requirements.
The consent order, signed by company owner Moshe “Henry” Qubrusi on January 30, mandates that New Jersey-based American Dream continue servicing existing warranties and processing claims. The company must also allow policy cancellations with refunds and circulate the consent order to all customers. By publishing it on their website, they aim to enhance transparency and consumer awareness. These steps are aligned with ensuring compliance in the insurance industry.
Reports have surfaced indicating representatives continued offering warranties in Florida post-order, witnessed during "get a quote" inquiries on the company's website. OIR clarified providing quotes doesn't infringe the order unless a transaction is completed. Should American Dream breach this, OIR is prepared to leverage its regulatory authority to enforce compliance. After initiating the licensing process in July 2024, their application expired due to lack of insurance backing by April 2025.
The order covers managing 600 current contracts, mostly expiring over the next 18 months. Initially, 894 contracts valued at $2.23 million in premiums were reported active as of August 2024. The OIR's vigilant oversight remains pivotal in risk management to protect Florida policyholders and ensure regulatory adherence by the provider.
For professionals in the insurance sector, this situation exemplifies the critical need for licensure and regulatory compliance. It serves as a cautionary tale about the repercussions carriers face for operating without appropriate authorizations, emphasizing the importance of following industry standards.