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Posts Tagged ‘insurance laws’

Insurance Company Faces Fines For Breaking Rules

April 15th, 10

A huge insurance company in California is accused of breaking state laws and could face big fines. The state Department of Insurance released a report Monday according to San Francisco Chronicle  that says that Mercury Insurance Group, the state’s third largest insurer overcharged customers and also denied some people coverage.

Mercury company officials released a statement maintaining their innocence. The company said in the statement that it “takes very seriously our responsibilities to consumers and our customers” adding, “We don’t engage in practices that would overcharge our customers.”

The report identifies 35 alleged violations in a span of about three months between March and May 2007. The violations include instances where Mercury supposedly barred people from coverage if they worked in certain jobs including bartenders, painters, cocktail waitresses or artists. Also, the report says that homeowners insurance premiums weren’t applied on time, resulting in overcharges for the insured. According to reports, Mercury has ten days to correct the violations and otherwise faces a $5,000 fine for each violation. This isn’t the first time Mercury has faced fines. In 2008 the company paid $200,000 in fines and in 2006, they paid $300,000 for violating insurance laws, according to Insurance Department officials.

Tags: insurance laws, insurance, Home Insurance, Vehicle insurance, Mercury Insurance Group