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 […]
Texas Collision Repair Shop Owner Sentenced for Insurance Fraud
Repair facility operator pleaded guilty to first-degree felony, ordered to repay more than $76,000. A Travis County, Texas collision repair shop owner was sentenced to 10 years of probation after Texas Department of Insurance investigators found he had reported accidents that never took place and intentionally damaged vehicles to increase insurance payouts for repairs. The […]
California Regulator Takes Control of Small Failing Insurer Impacted by Wildfires
Deadliest and most destructive fire in California history overwhelms Merced Property & Casualty Company. The California Insurance Department took expedited legal action to secure the assets of and take control of Merced Property & Casualty Company, in an effort to protect the company’s policyholders, including those who suffered losses in the Camp Fire. provided both […]
Auto Body Shop Owner Alleged Ring Leader of Insurance Fraud Ring in California
Detectives from the California Department of Insurance, arrested four people November 16 for allegedly ripping off four auto insurers for more than $34,000 by filing fraudulent insurance claims. One additional suspect was taken into custody Thursday, November 15, 2018. All suspects were booked into the Sacramento County Jail. Investigated by the Urban Auto Fraud Task […]
California Department of Insurance Finds Use of Opt-OEM and Alt-OEM Designations Unfair Claims Practice
DOI joins with California’s Bureau of Automotive Repair to prohibit use of parts terms. CollisionWeek interviews Don Feeley, Interim Executive Director of the California Autobody Association. In a letter dated October 8 to the California Autobody Association (CAA), the California Department of Insurance (DOI) responded to questions by the repair association regarding the use of […]
Insurance Associations Send Joint Letter to State Insurance Commissioners on Federal Tax Changes Impact on Insurance Rates
The American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) issued a letter to state insurance commissioners responding to the Consumer Federation of America (CFA) and the Center for Economic Justice’s (CEJ) claims about the federal Tax Cut and Jobs Act and how it may impact insurance rates. In a letter sent […]
Insurance Trade Groups Say California Labor Rate Regulation Increasing Both Rates and Costs
Insurance groups warn Department of Insurance collision repair labor rate regulations compounding California’s problem with rising accidents and repair costs. Repair association questions insurance view wondering how voluntary survey process can drive up rates. Two California auto insurance trade associations, ACIC, the California Voice of the Property Casualty Insurers Association of America (PCI) and the […]
NJ Insurance Department Petitions Court to Place Auto Insurer IFA Insurance Company into Liquidation
New Jersey Department of Banking and Insurance Commissioner Richard J. Badolato announced that the Department has petitioned the Superior Court of New Jersey, Chancery Division to place the Clark-based auto insurer IFA Insurance Company into liquidation. Last year, IFA Insurance Company withdrew from the New Jersey auto insurance market and began the process of running […]
Missouri Governor Appoints Acting Director of Insurance Department
John F. Rehagen was appointed acting director of the Missouri Department of Insurance, Financial Institutions and Professional Registration by Gov. Eric R. Greitens on Feb. 7. Rehagen has served as director of the Division of Insurance Company Regulation of the DIFP since January 2014, initially as acting director and currently as director. As division director, […]
Owners of Seven California Collision Repair Shops Arrested in Auto Insurance Fraud Sting
Department of Insurance alleges 40 suspects involved in $560,000 fraud ring. California Department of Insurance detectives and investigators with the Auto Insurance Fraud Task Force yesterday arrested seven suspects, charged an additional 22 who are self-surrendering, and are still seeking 11 more suspects for allegedly running an organized automotive insurance fraud ring that netted conspirators […]