Skip to content
tavernatzanakis

tavernatzanakis

General For All

Primary Menu
  • General News
  • Art And Entertainment
  • Baby & Parenting
  • Education
  • Fashion
  • Home
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
  • Home
  • Mercury Insurance accused of overcharging ‘good drivers’ – Orange County Register
  • business insurance

Mercury Insurance accused of overcharging ‘good drivers’ – Orange County Register

By Sybil T. Mann 3 years ago

[ad_1]

California’s insurance commissioner has issued a notice of noncompliance against Mercury Insurance, alleging the company violated consumer protection laws by selling its highest-priced policy to “good drivers” instead of the lowest-priced policy for which they qualified.

The action follows a department investigation that found numerous areas where Mercury’s business practices harmed policyholders across its private passenger auto, commercial auto, homeowners and commercial multi-policy lines of insurance, department officials said.

The investigation was based on a review of policies issued, renewed, cancelled, non-renewed, or declined during a randomly selected period running from April 1, 2014 to June 30, 2014. That included 293 in-force policies and 496 terminated and declined policies.

“Failing to sell good drivers the lowest priced policy for which they qualify is illegal, and my department will act on behalf of consumers and pursue the maximum penalties against Mercury for acting in bad faith,” Insurance Commissioner Ricardo Lara said Monday.

In a statement released late Monday, Mercury said it “strongly disagrees with the allegations.”

“The company has been working in good faith with the (California Department of Insurance) to address their concerns, and despite the company’s belief that it has not violated any laws, the company has implemented numerous operational changes at the request of the CDI,” the insurer said.

Lara said Mercury’s actions violate Proposition 103, a 1988 voter-approved initiative that mandates a 20% “good driver discount” for consumers who maintain a safe driving record.

Consumer Watchdog founder Harvey Rosenfield said the notice came as no surprise.

“Mercury is well-aware this is illegal because it has tried to change the law for two decades,” Rosenfield said in a statement. “Today’s enforcement action by the insurance commissioner is the first step in finally holding this recidivist company accountable for its deliberate law-breaking.”

The Los Angeles-based consumer group is urging Commissioner Lara to revoke Mercury’s license to do business in California.

Mercury maintains two insurance companies in California: Mercury Insurance Co., which targets “good drivers” with lower rates, and California Automobile Insurance Co., which charges higher rates for nearly identical coverage.

The department’s investigation found a number of ways that Mercury illegally sold and steered drivers to its company with the higher-priced plan:

  • Directing agents to provide quotes for its higher-priced plan using artificially low mileage, giving the appearance of lower rates in order to entice consumers
  • Directing agents to refuse to sell a lower-priced policy if a good driver had been cancelled for non-payment of a premium or had an accident for which theey were not at fault, neither of which is allowed under law
  • Only offering a monthly payment option in the higher-priced plan
  • Dissuading good drivers from switching to the lower-priced plan with misleading language for the nearly identical options
  • Falsely representing that both plans charge policy fees, when in fact only the higher priced plan charge the fees
  • Subjecting good drivers without prior coverage to different terms and conditions than other drivers

The department also alleges Mercury overcharged businesses and homeowners in other lines of insurance through a variety of illegal practices that resulted in discriminatory rates.

As an example, the company increased premiums for commercial drivers who had been in an accident where they were not at fault.

The allegations – 34 in all – are detailed in the department’s notice of noncompliance.

Mercury paid a $27.6 million fine in August 2019 for similar violations. It was the largest fine against a property and casualty insurer in the department’s history. The California Supreme Court upheld that action, finding Mercury charged consumers unapproved and unfairly discriminatory rates, Lara said.

No fine amount has been set for Mercury’s latest violations, department officials said.

Mercury said it will continue to work with the Department of Insurance to resolve any outstanding issues and settle the matter. But if that’s not possible, the company said “it will defend itself through the judicial process.”

[ad_2]

Source link

Tags: Amazon Business Login, Amazon Business Prime, Bank Of America Business Account, Best Business Schools, Business Attorney Near Me, Business Bank Account, Business Card Holder, Business Card Maker, Business Card Template, Business Cards Near Me, Business Casual Attire, Business Casual Shoes, Business Casual Woman, Business Plan Examples, Ca Business Search, Ca Sos Business Search, Capital One Business Credit Card, Chase Business Checking, Chase Business Credit Cards, Chase Business Customer Service, Chase Business Login, Chase Business Phone Number, Cheap Business Cards, Citizens Business Bank, Cox Business Login, Digital Business Card, Facebook Business Suite, Finance In Business, Free Business Cards, Google Business Login, Harvard Business School, Lands End Business, Massage Parlor Business Near Me, Michigan Business Entity Search, Mind Your Business, Mind Your Own Business, Ohio Business Search, Risky Business Costume, Skype For Business, Small Business Loan, Small Business Saturday 2021, Starting A Business, Texas Business Entity Search, Triumph Business Capital, Vending Machine Business, Verizon Business Customer Service, Vonage Business Login, Wells Fargo Business Account, Yahoo Small Business, Yahoo Small Business Login

Continue Reading

Previous How to Start a Business in 8 Steps [Lessons From an Entrepreneur] 2022
Next When is it right to start sex education for NJ’s youngest students?
July 2025
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031  
« Apr    

Archives

Categories

  • Art And Entertainment
  • automotive industry
  • Baby & Parenting
  • business insurance
  • Dating & Relationship
  • Dental Clinic
  • Education
  • Fashion & Beauty
  • Fitness Gym
  • Games
  • General
  • General News
  • Health
  • Home & Improvement
  • Technology Global

Recent Posts

  • How to Prevent Short Cycling and Prolong System Life
  • Reliable Backup Strategies for Business and Home Use
  • Maintenance Tips for Iron and Steel Industry Equipment
  • Stunning Alexandrite Necklace Designs: A Guide to Choosing the Perfect Piece
  • Treats for Dogs: Discover Online Options, Goat Treats, and Fish Treats

Fiverr

Fiverr Logo

Tags

Amazon Fba Business Atlanta Business Chronicle'S Boss Baby Back In Business Business Administration Degree Business Attire Women Business Card Design Business Cards Templates Business Casual Dress Business Casual Outfits Business Checking Account Business Credit Card Business For Sale Near Me Business Intelligence Platform Business Lawyer Near Me Business Loan Calculator Business Name Ideas Business Professional Women Business Spectrum Login California Business Entity Search Capital One Spark Business Carl Weber'S The Family Business Charlotte Business Journal Custom Business Cards Delaware Business Search Florida Business Search Fl Sos Business Search Harvard Business Publishing Insurance For Small Business Kelley School Of Business Maryland Business Express Maryland Business Search Moo Business Cards National Business Furniture New York Business Search Ohio Business Gateway Onedrive For Business Online Business Ideas Paramore Misery Business Risky Business Cast Small Business Insurance Spectrum Business Customer Service Tom Cruise Risky Business Us Small Business Administration Verizon Wireless Business Verizon Wireless Business Login
beritasehat
masjiddarussalampnp
tavernatzanakis.com | Magazine 7 by AF themes.

WhatsApp us