Division of Rehabilitation and Liquidation
| Name of Company: | The Exotic Warranty Company |
|---|---|
| Date of Liquidation: | April 12, 2006 |
| Policy Cancellation Date: | April 12, 2006 |
| Claims Filing Deadline: | October 12, 2007 |
| Guaranty Association: | None |
| Type of Coverage: | Unauthorized Insurer |
| State of Domicile: | Florida |
| Status of Receivership: | Closed |
| Date of Discharge: | June 5, 2009 |
On April 12, 2006, The Exotic Warranty Company ("Exotic") was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida ("Court"). The Florida Department of Financial Services is the court appointed Receiver of Exotic.
Exotic, a Florida corporation since January 2003, was headquartered in Bradenton, Florida. Investigation by the Florida Office of Insurance Regulation and the Florida Department of Financial Services discovered that Exotic was selling motor vehicle service agreement contracts ("warranties"), an insurance product. Exotic was not licensed to conduct insurance business in Florida and was therefore considered an unauthorized insurer.
At the time of liquidation, Exotic provided car, boat and RV warranties to over 1,000 warranty owners in at least 43 states and four foreign countries. By court order, the warranties are cancelled effective April 12, 2006. The Receiver sent notices of the liquidation proceeding and warranty contract cancellation to all known warranty owners and the dealerships that handled the sales of these contracts. There is no guaranty association coverage for claims arising under either unauthorized insurers or motor vehicle service agreements.
Receivership Status Update - 6/5/09
Since the company was ordered liquidated, the Receiver has pursued all available avenues in order to recover funds that would allow the Receiver to pay the claims filed in this receivership. Unfortunately, the only asset that is available to the Receiver in this estate is a final judgment that was entered against the owner of the company, Mr. Ben Evans, on September 26, 2006. To date, Mr. Evans has chosen not to pay on the judgment. It may take years before a recovery, if any, is made on the judgment. For this reason, the Receiver has closed this estate in an effort to minimize administrative expenses. However, should a substantial portion of this judgment be recovered, the Receiver will consider reopening the estate to make a distribution. The Receiver has worked diligently to recover funds in this receivership and is disappointed that we are unable to make a distribution. In the event the Receiver is able to collect on the final judgment against Mr. Evans, we will contact claimants in the estate.
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