Claims News Service, June 27, 1:12 p.m. EST — Mercury Insurance Group agreed to a quarter-million dollar settlement with the California Department of Insurance (CDI) for alleged claim-handling violations.
The CDI conducted a review of consumer complaints filed against Mercury Insurance, Mercury Casualty, and California Automobile Insurance Companies, collectively known as Mercury Insurance Group. Of the 121 files reviewed, a total of 258 violations were alleged to have occurred from Jan. 2004 through Dec. 2005. These violations involved several of the company's claim-handling practices, including unreasonable delays in affirming or denying coverage and issuing claim payments.
“It is vital that insurance companies put their customers first,” said California Insurance Commissioner Steve Poizner. “I'm pleased that Mercury has agreed to this settlement, which demonstrates that claim-handling violations will not be tolerated in California. Mercury recently announced that it is reducing rates for policyholders, and I am hopeful that the company will continue to put its customers first. The Department of Insurance continues to make sure that all insurance companies are obeying the laws in place to protect consumers.”
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