Georgia auto dealer accused of selling unauthorized insurance product
The state insurance regulator does not believe the issue is common among Georgia auto dealers.
A Liburn, Georgia, auto dealer is facing significant regulatory action for selling unauthorized insurance products to car buyers, according to the state’s Office of Commissioner of Insurance and Safety Fire.
Stone Mountain Motors LLC, was offering deductible benefits, which the regulator identified as insurance products. However, the product was not filed with the commissioner’s office, a step that is required by Georgia law.
Georgia’s insurance regulator sent the auto dealer a cease-and-desist notice, demanding the company immediately stop selling the unauthorized product. Stone Mountain Motors, known locally as Toyota of Stone Mountain, was also issued a subpoena so more information could be collected as part of the regulator’s investigation.
While few details are available on the insurance coverage being offered by Stone Mountain Motors, deductible benefits (or auto deductible reimbursement) typically work by reimbursing policyholders for the deductible amount they pay when filing a claim on an auto insurance policy.
The state regulator reported it is working on comprehensive guidelines to help car dealers more easily determine what constitutes an insurance product and the regulatory requirements around the selling of those policies.
The Office of Commissioner of Insurance and Safety Fire told PropertyCasualty360.com that it does not believe this issue of unregulated deductible coverage is prevalent in the state.
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