PRC finds ticket insurance company fraudulent

From - By: Jill Galus, KOB Eyewitness News 4 - he New Mexico Public Regulation Commission's Division of Insurance is taking action to shut down after a KOB Eyewitness News 4 investigation. The PRC has been looking into the company for more than a month now and issued a cease and desist order last week, which said, Ticketsbite LLC has no business doing business here in New Mexico.
     If you are a driver who has a hard time obeying the law, traffic ticket protection may look like the answer to your problems. For anywhere from $50 to $200 a year, Ticketsbite LLC offers to cover fines for everything from speeding to running red lights, and just about anything in between.
     But John Gaherty says that is where all the problems actually start. "We are not going to tolerate this kind of business in New Mexico," Gaherty said. Gaherty said Ticketsbite LLC is selling insurance, but without the right qualifications, the polices are fake.
     The PRC sent a letter to the company's P.O. Box address in Las Vegas, Nev. about a month ago. Gaherty said the PRC received a roundabout response. "It was vague, ambiguous, they indicate they're not selling insurance, they're selling vouchers, but yet their website has insurance plastered all over it," Gaherty said. "Our inquiry letter asked specific questions, for example, how many policy holders do you have in New Mexico, and they didn't answer all of that... they didn't answer any question."
     Two weeks ago, KOB contacted the company's co-founder, Chris Thomas, over the phone. Thomas explained, "We really operate like a voucher system." At the same time, he agreed, the word "voucher" is not used anywhere on the website. "A lot of states, they don't view providing insurance for traffic tickets as a legal way of doing business," Thomas added.
     The PRC is making that same point, that it is not legal. Read more