Kreidler fines LifeTime Home Warranty $200,000 for unauthorized business and refusing claims without just cause

July 25, 2024

OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler issued a cease-and-desist order and fined LifeTime Home Warranty LLC $200,000 for acting as an unauthorized insurer, refusing claims without just cause and failing to respond to the insurance commissioner’s inquiries. 

The order, filed July 25, 2024, bars LifeTime from transacting insurance business or acting as a service contract provider in Washington state. 

LifeTime sold home appliance service contracts in Washington without first registering with the Office of the Insurance Commissioner, refused claims and services without just cause and failed to respond to multiple inquiries from the OIC. LifeTime’s contracts claimed to cover the costs of repair and replacement, or maintenance, for consumers’ household appliances. 

“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.”

Kreidler’s office opened an investigation into LifeTime after receiving a complaint that the company failed to refund a consumer for canceled home appliance coverage. The consumer bought an eight-year home warranty contract — to cover repair, replacement or maintenance on household appliances — for $3,592, but reconsidered the next day. LifeTime confirmed the cancellation on a phone call but never refunded the $3,592, prompting the consumer to complain to the OIC.

A second consumer paid LifeTime a total of $7,650 in premiums and filed five claims. The first claim went unanswered; the second was denied and an appeal went unanswered; the third was denied; and the final two went unanswered.

Eight more consumers filed complaints to the OIC in 2022 and 2023, most of which cited LifeTime’s failure to respond to claims and communications. State regulation requires insurance companies to acknowledge they’ve received a claim within 10 working days.

The company has 90 days — until October 23, 2024 — to respond and request a hearing.

Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers. Since 2001, Kreidler has assessed more than $41 million in fines, which are directed to the state’s general fund to pay for state services.

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