California Insurance Commissioner Dave Jones announced a $1 million settlement with Mercury Insurance Co., Mercury Casualty Co. and California Automobile Insurance Co. in connection with various compliance violations.
The settlement stems from a regularly scheduled “market conduct exam,” which found that Los Angeles-based Mercury violated California law numerous times based on more than 50 illegal rating and underwriting practices, according to the California Department of Insurance.
In addition to the $1 million fine, Mercury agreed to reform its business practices, the CDI said.
CDI said the violations crossed several lines of insurance. Violations included failure to provide reasons for non-renewals and cancellations, using unapproved and unfiled rates, failing to consistently follow Mercury’s own rating and underwriting rules and failing to make certain required disclosures in Spanish.
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The state said its market conduct exams can be scheduled based on consumer complaint activity, special requests or at regular intervals.
Call The Bee’s Mark Glover, (916) 321-1184.