Warranty Gold - Buyer Beware

Beware, do not buy any warranty from warranty gold. I bought a diamond plan for $1500 in April. In June I needed to use it and sure enough, their "insurance" company moved all the funds to the caymen
islands and filed bankrupt!
What a crock, I'm out 1500$. Save your money and go somewhere else.
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i had something like that happen to me on a GMPP major gaurd i bought on the internet. BUT thank god i had all paper work and canceled checks. seems the dealer i bought it from, had a outside source selling them for them, and the guy took off one month will all the checks. i sent a copy of everything to the dealer, and they marked my acct on mine as paid in full. so i guess the term BUYER BEWARE really does mean something.
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On 3 Sep 2003 18:10:41 -0700, snipped-for-privacy@yahoo.com (MightyZR2) wrote:

Actually, as I understand it, the insurance company is REGISTERED in the Cayman Islands, as you will find many do, it's less expensive that way or something. Having read A LOT on this issue, it sounds like Warranty Gold's hands are tied, not much they could have done about the issue, and they have moved to another insurer for all new policies sold. This isn't to say this same thing couldn't happen to another extended warranty company, because that insurer isn't just fulfilling WG policies, they fulfill other policies as well, so those people are just as screwed as the WG customers. Yeah it sucks, but it could have happened with any other warranty company. Make sure the claim is submitted, keep a record of it, once WG gets things straightened out, call and ask that your claim be re-processed and paid to you and not the shop.
My dad's in the same boat with his Durango (the owner's club he's a member of is where I learned about this), and he's currently on a cross-country trek, in that truck that's out of factory warranty.
Here is a Jeepsunlimited post about this issue: http://www.jeepsunlimited.com/forums/showthread.php?s=&threadid@0421&highlight=warranty+gold
Below is a copy of an e-mail sent to a member of the Durango group when they inquired with the company about the status of their policy:
This correspondence is designed to relate the facts and circumstances pertaining to National Warranty Insurance Risk Retention Group (National Warranty), Warranty Gold's administrator and insurer, and the impact of those circumstances upon the holders of extended service contracts issued by Warranty Gold..
Prior to June 9, 2003, when Warranty Gold contracted with a new administrator and insurer, the administration of Warranty Gold contracts and the payment of claims, if any, were the responsibility of National Warranty, a certified risk retention group authorized to do business in all fifty states. When each contract was sold, Warranty Gold was obligated to deposit with National Warranty the amount of money which National Warranty and, according to National Warranty, its certified actuaries, had calculated would be necessary to pay claims under that contract. In addition, Warranty Gold deposited with National Warranty a fee assessed for administration services and an additional premium for insurance (National Warranty possessed an A- insurance rating, which is excellent) which guaranteed the payment of all covered claims, should the calculated cash deposits prove insufficient to do so. Thus, the contract holder was protected from the risk that National Warranty and its actuaries had not accurately predicted the claims or losses to be incurred over the life of the respective contracts. In addition, National Warranty had a reinsurance contract with an A-rated carrier which was to further insure that National Warranty's obligations would be met.
National Warranty provided the services described here to other extended service contract providers. One such provider was in a dispute with National Warranty and on June 6, 2003, National Warranty sought and received a "provisional liquidation" order which had the effect of preventing any lawsuits or other attempts to attack National Warranty. The accounting firm, KPMG, was assigned to review National Warranty's finances and make recommendations to the court, which is in the Cayman Islands, where National Warranty was originally chartered. Cayman charters were specifically permitted under the Federal Risk Retention Act, and National Warranty was, until March, 2003, rated by A. M. Best as "A-". Additionally, National Warranty was audited each year by Deloitte & Touche, a national accounting firm.
Although Warranty Gold deposited all monies and insurance premiums required to protect holders of Warranty Gold contracts, the KPMG representatives with current authority over National Warranty's operations, determined that all claims would be delayed until KPMG was able to determine whether or not National Warranty was solvent. Consequently, Warranty Gold and other companies which have fully performed all requirements and made all necessary deposits have been unable to access monies or remit claims payments pending the conclusion of the KPMG investigation.
On August 1, the Grand Court of the Cayman Islands entered an order finding that National Warranty is insolvent and converted the Provisional Liquidation into a Liquidation. KPMG was ordered to gather the assets of National Warranty and distribute the assets equitably to Warranty Gold and the other creditors of National Warranty. The total amount of the assets and the method and timing of distribution is not known by anyone at this time. We are in constant contact with the Liquidators and have retained lawyers in the Cayman Islands and the United States to protect the interests of our contract holders, in whose behalf the monies were deposited and insurance purchased. We will be unable to access funds or inform you of the amount of those funds until the Liquidators present a proposal. We will continue to aggressively pursue assets and anyone responsible for the National Warranty insolvency.
On June 9, 2003, the very day Warranty Gold was informed of the provisional liquidation, it contracted with a new administrator and all service contracts sold subsequent to that date are not involved in the National Warranty proceeding and any claims under such new contracts are paid without problems, as was the case prior to the liquidation proceeding. No contracts will ever again be sold subject to any National Warranty involvement.
Warranty Gold is, in the courts and elsewhere, pursuing every avenue to permit the payment of claims which were, and are, the responsibility of National Warranty which received all of the monies related to the contracts and issued insurance policies guaranteeing payment. However, Warranty Gold is obligated to obey the orders of the court. Warranty Gold is painfully aware of the inconvenience and hardship occasioned by these events over which Warranty Gold has no control; as stated above, it has retained attorneys in the Cayman Islands, New York and Texas to aggressively insure that its recovery is maximized. Unfortunately, no one can say with certainty how or when this situation will be resolved.
We greatly appreciate your patience and apologize for the inconvenience you have experienced. We will notify you as soon as additional information is available.
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: QUOTE" What a crock, I'm out 1500$. Save your money and go somewhere else "UNQUOTE
if you are out "1500$" who cares! Now if you had used American money and spent $1500 then you'd have something to gripe about.
here is a consumer tip to ALL you numbnuts Extended warranties are a RIPOFF
Do not buy them at BESTBUY, CIRCUITCITY, SEARS, THE CAR LOT, ANY FREAKING WHERE.
: Beware, do not buy any warranty from warranty gold. I bought a : diamond plan for $1500 in April. In June I needed to use it and sure : enough, their "insurance" company moved all the funds to the caymen : islands and filed bankrupt! : : What a crock, I'm out 1500$. Save your money and go somewhere else.
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