The state Department of Insurance on Wednesday announced a $250,000 settlement with Mercury Insurance Group for allegedly violating claims handling rules.
The agreement follows an investigation into complaints lodged against the Los Angeles-based company in 2004 and 2005. Officials reviewed 121 files and found 258 violations, according to a statement, including unreasonable delays in affirming or denying coverage and issuing payments on claims.
In the settlement, Mercury denied it did anything wrong and noted it has "implemented various measures to ensure compliance" with the law. It also will pay $50,000 to cover the investigation and legal costs.
– Jon Ortiz
