California Insurance Commissioner: Mercury Steered ‘Good Drivers’ Toward Higher-Priced Policies

August 1, 2022

  • August 1, 2022 at 6:41 pm
    SacFlood says:
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    Mercury’s at it again; first the father who founded the company ran afoul of the CA Insurance Commissioner, and now the son who is taking over is making the same mistakes. Mercury, either comply with Prop. 103, or cease doing business in CA. Prop. 103 was passed in 1988, so you have had 34 years to comply; is over one-third of a century not enough time to do so?!

  • August 2, 2022 at 3:23 pm
    REALITYCHECK says:
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    That’s exactly what an uneducated regulator would say and do.

    We have written for Mercury(one of our 10 PREFERRED markets for many years) and never had an issue doing the right thing.

    There were distinct differences between the two underwriting companies from a coverage and discount availability standpoint due to a DOI requirement that they had to be different since the companies were with one parent insurer. I will not divulge the subtle differences in this forum, so you must do your own homework.

    Once they were able to offer similar levels of coverage, although discount availability is different) we are now comfortable that our Good Drivers are getting the same level of protection in Mercury Insurance Company. Because as an agency, we will only offer the broadest protection with the best limits offered by our companies. We educate our clients on the different options as well and let them make the decision.

    I hope that Mercury prevails on this one. If not they need to give CA the finger for its forced underpricing of homeowners and auto insurance, Interveners and the ignorant voters ala Prostitution 103.

  • August 2, 2022 at 7:32 pm
    Observor says:
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    Prop 103 is stopping California insurers and drivers from enjoying the benefits of innovation in ratemaking and other technological innovations in areas such as telematics. In a market with many competitors why would you need a commissioner to go after one of the players for pricing. Allowing the free market to price freely while enforcing actions against those companies that renege on contractual duties while ensuring all players are financially viable should be the regulators duties. The proposition barely passed in 1988 and if people knew the extent of the growth of the Department of Insurance as well as the money they pour into the fees paid to trial lawyers dressed up as “consumer protection interveners” they might think again about the cost of passing this proposition.



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