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HomeInsuranceClient Watchdog recordsdata petition towards Mercury for discrimination, worth gouging

Client Watchdog recordsdata petition towards Mercury for discrimination, worth gouging

Client Watchdog recordsdata petition towards Mercury for discrimination, worth gouging | Insurance coverage Enterprise America

Firm purportedly violated important insurance coverage reform initiative

Consumer Watchdog files petition against Mercury for discrimination, price gouging

Motor & Fleet

Kenneth Araullo

Client Watchdog filed a petition to intervene in an enforcement motion initiated by the California Division of Insurance coverage (CDI) towards Mercury Insurance coverage Group. The allegations revolve round accusations of overcharging, deceptive practices, and discrimination towards California householders and motorists.

Client Watchdog’s involvement within the case will concentrate on the corporate’s purported violations of Proposition 103, a big insurance coverage reform initiative established in 1988. The CDI has accused Mercury of 29 completely different violations of this legislation, 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 will stop many of those practices, that are illegal underneath Proposition 103, however allegedly continued to violate the legislation.

“Mercury has constantly refused to obey the principles California voters put in place with Proposition 103 to cease price-gouging and practices that discriminate towards 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 trouble to obey the legislation. Client Watchdog appears to be like ahead to working with CDI prosecutors to deliver Mercury to justice – which we consider means barring Mercury from doing enterprise within the state,” Client Watchdog employees legal professional Benjamin Powell stated.

Courting again to as early as 1995, that is at the very least the third time since 2004 that CDI has charged Mercury with violations of Proposition 103’s client protections and different state legal guidelines. The costs 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 function in a 2004 CDI noncompliance motion towards the insurer. That led to Mercury paying a document $41 million in penalties and curiosity. CDI filed one other noncompliance motion towards Mercury in 2014 and issued a $1 million superb in that motion.

Within the present motion, Client Watchdog will make the case for CDI to challenge 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 house insurer within the state.

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