Business & Real Estate

State announces $1 million settlement with Mercury Insurance

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.

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.