Ohio service contracts not legal

The Washington state insurance commissioner’s office has issued a ceaseand desist order against an Ohio company that’s selling unauthorized vehicle service contracts.

Auto Repair Warranty, Inc. and company founder Michael F. Petruziello have been ordered to immediately stop selling or advertising insurance in Washington. Under state law, such contracts are considered to be insurance.

Neither the company nor Petruziello is authorized to issue or sell insurance in Washington. Neither has applied for or been granted a registration as a motor vehicle service contract provider.

Investigators for the insurance commissioner’s office know of at least two Washington consumers who have purchased coverage from the company. The company’s Web site is www. autorepairwarranty.com.

Under Washington law, any unauthorized insurer is individually liable for the performance of the contract and for the full amount of any loss sustained by an insured person under such a contract.