California State Regulators Accuse Mercury Insurance Group of Overcharging Customers
The Sacramento Bee reported this week that state regulators have accused Mercury Insurance Group, the third largest car insurer in the state, of illegally overcharging thousands of Californians for car insurance and homeowner's insurance. According to a press release issued by Insurance Commissioner Steve Poizner, in a routine exam conducted in spring 2007, investigators discovered that Mercury apparently had "disregarded California's consumer protection statutes and overcharged consumers." Mercury has already refunded policyholders more than $75,000 as a result of problems discovered by insurance department investigators.
According to the Bee, Mercury allegedly refused to cover motorists in certain occupations, including cocktail waitresses, bartenders, artists and painters. Mercury also charged drivers "excessive rates" following accidents that were not their fault. Mercury accused Steve Poizner of publicizing the allegations for his own "political interests." A spokesman for the department said that the department doesn't typically announce charges, but chose to do so because Mercury is accused of failing to follow through on promises to correct previously uncovered violations.
