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Hefty Fine Against Mercury Insurance Remains

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Aug. 26, 2019—California regulators say a ruling by the state’s highest court means a $27.6 million fine imposed against Mercury Insurance Co. for improperly adding fees to auto insurance policies will stand, according to a report by Insurance Journal.

The California Supreme Court has denied a petition for review by Mercury Insurance, keeping in place the fine imposed on Mercury for charging illegal fees in violation of Proposition 103.

Mercury was charged the fine in 2015 for charging consumers unapproved and unfairly discriminatory rates. Mercury continued to allow its auto insurance agents to charge consumers $50 to $150 in illegal fees on top of the premium the department approved.

Proposition 103, passed by the voters in 1988, prevents auto insurers from charging excessive rates and requires that rates be approved by the commissioner.

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