American Mercury and Mercury Insurance companies have agreed to refund more than $2 million to their policyholders in Florida, according to Tom Gallagher, Florida CFO.
According to the state’s Office of Insurance Regulation, its examination of the two companies was initiated based on consumer complaints referred by the Department of Financial Services and found the companies improperly cancelled coverage and denied claims.
“Obtaining restitution for consumers should be our top priority when action is taken against an insurance company for improper practices,” Gallagher, who oversees the Department of Financial Services, said. “We will continue to shed the light on companies that engage in an abusive pattern of denying claims or dropping policyholders.”
In addition to refunds, the Office of Insurance Regulation ordered the two companies to pay $1 million in fines and investigative costs. Its examination uncovered numerous violations, including canceling coverage when a claim is filed and improperly denying or avoiding payment on claims.
Source: Department of Financial Services