Mercury Insurance Agrees to Pay $41 Million to End 20 Year Legal Battle

Mercury Insurance Co. (Mercury) has agreed to pay $41.2 million to resolve allegations which state its brokers added illegal fees onto auto policyholders’ premiums, according to an announcement made earlier this week.

“Today is a testament to the tenacity of the Department of Insurance team who won this in court and kept the pressure on Mercury, which profited by skirting the law and taking advantage of consumers,” said Ricardo Lara, California insurance commissioner.

Lara also mentioned, it’s the largest property and casualty penalty and interest payment in the history of the state Insurance Department. The settlement comes after the Supreme Court declined to hear the company’s appeal from a lower court decision in August.

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