i had something like that happen to me on a GMPP major gaurd i bought on
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
really does mean something.
On 3 Sep 2003 18:10:41 -0700, email@example.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
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:
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
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.
: QUOTE" What a crock, I'm out 1500$. Save your money and go somewhere else
if you are out "1500$" 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
: 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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