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The California Department of Insurance (DOI) sent a formal Notice of Non-compliance to Mercury Insurance.
This action alleges Mercury purposely violated California law by selling its highest-priced policy to “good drivers” instead of the lowest-priced policy for which they qualified.
DOI Commissioner Ricardo Lara, who is running for re-election, stated that “failing to sell good drivers the lowest-priced policy is illegal.”
Mercury, of course, “strongly disagrees.”
Harvey Rosenfield, who authored the law in question, stated that Mercury is well-aware that [their act] is illegal and that "[Mercury] has tried to change the law for two decades.”
Among the ways Mercury violated the law by diverting “good drivers” to the higher-priced policy were:
- Directing agents to give higher quotes,
- Telling agent to refuse to sell lower-priced policies, and
- Only offering monthly payments for high-priced plans.
Another example of Mercury's violation of the law includes overcharging commercial drivers who had an accident but were not at fault.
The DOI also claims Mercury overcharged businesses and homeowners through a variety of illegal practices.
To get a complete version of this breaking story contact lisabrown@shawnsteel.com.
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