February 25, 2019
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler reached an agreement with Fred’s Appliance, Inc., to pay $448,627 in back taxes, penalties and interest and a $10,000 fine after illegally selling service contracts to Washington state consumers for more than 11 years. Fred’s Appliance, a Spokane-based retailer with stores in Washington, Idaho and Montana, paid the amount on Feb. 21.
Companies that sell service contracts in Washington state must register with the insurance commissioner. Fred’s Appliance sold 39,520 service contracts to 30,390 Washington consumers and collected $13.2 million in premiums.
In addition to the payment, Fred’s Appliance agreed to become a registered service contract provider no later than Aug. 21, 2019, and to develop a service contract product that complies with state law. The consent order allows Kreidler to impose an additional $15,000 fine if the company fails to complete these actions.
Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $26 million in fines, which are deposited in the state's general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers.
For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.