Firm purportedly violated vital insurance coverage reform initiative
Client Watchdog filed a petition to intervene in an enforcement motion initiated by the California Division of Insurance coverage (CDI) in opposition to Mercury Insurance coverage Group. The allegations revolve round accusations of overcharging, deceptive practices, and discrimination in opposition to California householders and motorists.
Client Watchdog’s involvement within the case will concentrate on the corporate’s purported violations of Proposition 103, a major insurance coverage reform initiative established in 1988. The CDI has accused Mercury of 29 completely different violations of this regulation, together with overcharging good drivers and different motorists, penalizing motorists for not beforehand carrying insurance coverage, charging unauthorized charges, and implementing discriminatory charges.
Client Watchdog famous that Mercury had beforehand promised CDI it might stop many of those practices, that are illegal beneath Proposition 103, however allegedly continued to violate the regulation.
“Mercury has constantly refused to obey the principles California voters put in place with Proposition 103 to cease price-gouging and practices that discriminate in opposition to those that can least afford it. Earlier investigations and multimillion-dollar penalties have clearly failed to discourage the corporate from wrongdoing. Mercury, as a repeat offender, should pay a steep worth or no insurer will hassle to obey the regulation. Client Watchdog seems ahead to working with CDI prosecutors to convey Mercury to justice – which we imagine means barring Mercury from doing enterprise within the state,” Client Watchdog workers legal professional Benjamin Powell stated.
Courting again to as early as 1995, that is at the least the third time since 2004 that CDI has charged Mercury with violations of Proposition 103’s shopper protections and different state legal guidelines. The fees within the present actions are, in lots of cases, for a similar unlawful conduct as uncovered in prior examinations by the CDI.
Client Watchdog performed a key position in a 2004 CDI noncompliance motion in opposition to the insurer. That led to Mercury paying a document $41 million in penalties and curiosity. CDI filed one other noncompliance motion in opposition to Mercury in 2014 and issued a $1 million effective in that motion.
Within the present motion, Client Watchdog will make the case for CDI to problem the very best penalty due to Mercury’s recidivism – license suspension or revocation – if the allegations are confirmed true at trial.
Mercury is the third largest auto insurer and sixth largest dwelling insurer within the state.
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