Florida Insurance Commissioner Kevin McCarty announced in early May the issuance of a consent order requiring two companies operating in Florida to pay over $2 million in refunds to policyholders for engaging in improper claim settlements and charging rates not approved by his office. The two are American Mercury Insurance Company, a homeowners' insurance company, and Mercury Insurance Company of Florida, an automobile insurer.
The consent order follows a six-month examination of the two companies that found 13 separate statutory violations, plus three violations of the Florida Administrative Code. In addition to being ordered to refund monies to policyholders, the company agreed to pay $1 million to the OIR -- $500,000 in administrative fines and $500,000 for reimbursement of examination expenses.
Among the numerous violations, the use of unfiled forms and rates to improperly deny claims were considered the most egregious, according to an OIR release.
