Yesterday, the California Court of Appeal upheld a $27.5 million fine the Department of Insurance issued against Mercury Insurance Company for charging illegal fees that should have been disclosed as premiums, a violation of Proposition 103. The fine is the largest in the Department’s history against a property and casualty insurer.
In 2015, the Commissioner fined Mercury $27.5 million for charging consumers unapproved and unfairly discriminatory rates. Despite being advised by the Department of Insurance not to do so, Mercury continued to allow its auto insurance agents to charge consumers $50 to $150 in illegal fees on top of the
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