Florida Insurance Commissioner Mike Yaworsky has officially ordered American Dream Auto Protect to shut down its operations within the state after the discovery that the company was selling service agreements without a required license.
The move is part of a broader crackdown by the Office of Insurance Regulation (OIR) to shield residents from financial risks posed by unauthorized insurance products.
According to state officials, American Dream Auto Protect entered into motor vehicle service agreements with Florida residents without obtaining the necessary approval or licensure from the OIR. To minimize the fallout for current policyholders, the state is requiring the company to continue honoring existing warranties in compliance with Florida law. Furthermore, the company must allow consumers to cancel their coverage for a full refund and pay out all legitimate claims.
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To ensure transparency, the OIR is demanding that American Dream notify its customers directly by sending them a copy of the consent order. The company is also required to post the order prominently on its website. These measures follow a report indicating that the firm had nearly 900 active contracts and over $2.2 million in unearned premiums. While the company reportedly tried to sell off its remaining books of business, the attempt was unsuccessful. Currently, about 600 contracts remain active, with 80% of them expected to expire over the next 18 months.
Commissioner Yaworsky and other state leaders are using this case to remind the public about the dangers of unlicensed entities, which often lack the financial reserves or oversight needed to guarantee that claims will actually be paid.
“The Office of Insurance Regulation takes reports of unlicensed activity seriously. Consumers should feel confident that their coverage purchased is legitimate and regulated,” Yaworsky stated. He added a firm warning for other companies: “We will continue to blast any company that blatantly disregards state law and will strongly advise consumers to find a better option.”
Chief Financial Officer Blaise Ingoglia echoed these sentiments, emphasizing the state’s role as a watchdog for policyholders.
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“Floridians have a right to know that when they entrust an insurance company with their money, that the company is acting in good faith,” Ingoglia said. “There is no excuse for defrauding Floridians. I have made it one of my core missions to be an advocate for policyholders and I will continue to work with the Office of Insurance Regulation to hold bad actors accountable.”
In response to the incident, the OIR has launched a new website specifically designed to highlight unlicensed activity discovered by state investigators. Officials define an unlicensed insurance entity as any person or business selling, negotiating, or advertising insurance products—including extended warranties and health plans—without official state authorization.
Yaworsky is now urging any Floridians currently doing business with unlicensed companies to consider switching to appropriately licensed providers. The OIR continues to encourage consumers to perform due diligence and use the agency’s online resources to verify that a company is legitimate before signing any contracts.
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