Mercury Insurance ordered to pay $27.5 million in fines

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A California appeals court has ruled in favor of reinstating the penalties against the insurer. In California, a state appeals court has reinstated a fine of $27.5 million in penalties against Mercury Insurance Co. The ruling from earlier this week was the outcome of a case accusing the insurer of charging illegal broker fees. The auto insurance company charged illegal broker fees in 180,000 transactions with its customers. The fees were charged to customers from 1999 through 2004. The fines against Mercury Insurance were originally imposed by the California Department…

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Auto insurance firm hit with $27.6 million fine

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Mercury Insurance is being ordered to pay a large fine for wrongful fees issued to consumers The California Department of Insurance has ordered Mercury Insurance, one of the state’s largest auto insurance providers, to pay some $27.6 million in fines for allegedly charging consumers wrongful fees. This represents the largest fine issued against an auto insurance company in the state. Insurance Commissioner Dave Jones ordered the fine, accusing the insurer of charging broker fees that it did not approve of to begin with. Mercury Insurance believes that the fine is…

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Homeowners insurance rate challenge partially lost by Mercury

California Homeowners Insurance

The insurer has failed to win a segment of its ongoing legal challenge in California. Mercury Insurance Group, the massive company serving California, has just lost a segment of its ongoing homeowners insurance rate legal challenge that it made against an order from state regulators. The petition to delay the decrease in the insurer’s rates which had been ordered upon them was rejected. The insurer lost their petition for the homeowners insurance rate decrease delay in the Sacramento Superior Court. The result will be that approximately 270,000 residents of California…

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Homeowners insurance battle ensues between California commissioner and Mercury

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The insurer’s chairman and founder, George Joseph, is suing to stop the action of state regulators. Regulators in California have ordered a reduction in homeowners insurance rates by Mercury Casualty Co., only to be contested by the insurer, which is refusing to comply with the ruling. The order was to reduce the rates for the property coverage by an average of 8.2 percent. The insurer, based in Los Angeles, is now arguing the order that was made by the state to reduce the rates that it has been charging. The…

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Homeowners insurance employees trained for catastrophe response

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Mercury has had 30 volunteers take the month long course for CERT certification. Mercury Insurance has announced that thirty of its employees have trained over the span of a month in order to receive their CERT certification which will help them with homeowners insurance emergency disaster preparedness. The volunteers were from the Southern California offices of the insurer. The insurer recognizes that the residents of California are at risk of a wide range of different forms of natural disasters, from floods to wildfires, and even earthquakes. The auto and homeowners…

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Mercury Insurance invests more money in Prop 33

California auto insurance

Mercury Insurance executive donates more funds to controversial legislative initiative Mercury Insurance executive George Joseph has donated more money to a legislative initiative in California, the fate of which will be determined in November this year. The initiative is known as Proposition 33 and aims to provide more rate increase freedoms to the state’s auto insurance companies. Mercury Insurance has been one of the strongest advocates of the initiative, which has earned the company a fair amount of criticism for wanted to raise rates in an unjustified manner. Prop 33…

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Auto insurance customers with coverage gaps may face higher rates

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Battle over automobile coverage law in California rages on for two decades. The auto insurance war that regarding the laws in California are now entering their second decade between George Joseph, the billionaire Mercury General Corp. executive, and Harvey Rosenfield, the consumer advocate. The latest battle in the war will occur in November, when the two will face off over a ballot initiative. The initiative could bring the auto insurance law in California back to the way that it was before a provision was implemented in 1988. This would allow…

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