interstate rv extended warranty issue

[bassbuster]

On February 29,2008 I purchased a KZ Spree 305 BH fifth wheel from Camper’s Paradise in Clarkston Michigan. Along with that Fifth Wheel I purchased a extended warranty through interstate Star RV. I purchased the platinum plus 5 year warranty and paid $1,599.00 for the extended warranty and have copy of the contract. On our last camping trip our air conditioning unit went out and I called a mobile RV service and they came out and said it needed to be replaced. I called Star RV’s claims department and the lady looked up my contract and said when the repair service was ready to install to have him call them and they would give authorization number. He returned about hour later with the air conditioning unit and called the claims line and they said I have no contract with them. He explained the contract was in his hand and after few minutes gave the phone to me. I had lengthy discussion with them and then a supervisor. He said I need to call the bankruptcy judge for the dealership I purchased it through and had no policy with them. I asked him first how does he know the dealership I purchased it through went into bankruptcy and why did hour before the lady said I had a policy? He had no answer and said goodbye. I paid cash for the repairs and have been trying to figure out where to start in regards to this issue to get the money I paid for the policy back. As I read the contract and have spoken with some others the salesperson I bought the policy and the camper through acts as a agent for the dealership when he sell’s me the camper and as a agent for the insurance company when they sell me the extended warranty. I do not know where to begin now, can you help?

[djhinds]

I also have an Interstate Star Extented Warrantee. Have used it 3 times with great results, some very expensive. If the stealership went bankrupt, maybe they did not send money to ins. co. The ins. co. may not know you exist. I would start with who sold you the policy as they should be responsible ( they have your money)...

Dave

[BobGed]

I would agree with the previous poster. You should start by contacting the dealer that sold you the policy. There is still an active website http://www.campersparadiserv.com/Default.aspx so it appears they are still in business.

[bdaball]

We too have Interstate Star. The one time we used it it was smooth and seemless. If I understand the framework correctly. Star is the Warranty company that is administered by Interstate National.

However it sounds like your issue is with the dealership.

[Donr827]

Did you ever receive anything from Interstate directly?
Don

[bassbuster]

dealership doesnt exist anymore. It will be long struggle, I have been told that while the sales person works for the delaership while he sells the extended warranty he is actually an agent of the insurance company, so if he kept the money and the dealership was open the two could sit and point fingers at each other because the sales person is both a agent of the dealership and agent of the insurance company, guess bottom line I am out lot of money and nothing I can do

[Mr_D]

Originally Posted by bassbuster

guess bottom line I am out lot of money and nothing I can do

Pretty much a true statement!

Lots of people have had that happen, stealership never pays for the service policy and goes belly up so you're out the money or the service policy company goes belly up after collecting the money. Same thing, both ways you're out the money.
That's one of the reasons given for not buying one, had you put the money in a savings account you'd still have it.

[bdaball]

Have you discussed this with the Michigan Attorney General?

[Mr_D]

If the stealership filed bankruptcy then you'll just be added into the unsecured debtors list. They are the next to last to be paid so there's not much hope there either. Doubtful that the AG's office can help.

[bassbuster]

yes I received the normal literature from the insurance company, not sure how they knew the dealership went bankrupt when I called in either, I never mentioned it, that always stuck in my belly as being weird. they just automatically said call the dealerships bankruptcy judge.

[bassbuster]

yes I have filed with michigan AG, Good Sams club help, and emailed the former owner of the dealership, nothing as of yet

[fulltime2005]

It is re-insurer A.M Best rated insurnance co. to raise heck with. On your policy they will be listed as Dealers Assurance Company. File in small claims court on both of them, cost is around $50. Yes dealer was an agent and you are covered under UCC code. I was a banker for 37 years and deakers did this all the time, sold policys, even cridit life, then failed to send in $'s. Company and re-insurer are still liable..there is lotas of case law.