Mercury Insurance Inks $41M Deal To End Illegal Fee Claims

Law360 (October 2, 2019, 9:03 PM EDT) -- Mercury Insurance Co. has agreed to pay California authorities more than $41 million to resolve a long-running legal battle centering on allegations that its brokers tacked illegal fees onto auto policyholders' premiums, the Golden State's Department of Insurance announced on Tuesday.

The regulator described the multimillion-dollar settlement amount — the bulk of which has already been paid — as the largest-ever penalty imposed on a property and casualty insurer in California.

The state's insurance commissioner, Ricardo Lara, said in a statement on Tuesday that the penalty shows that "no insurance company is above the law."

"Today is a testament to the...

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