Ricardo Lara’s Troubles Aside, Reverting To An Appointed Insurance Commissioner Would Hurt Consumers

Where the troubling trail of accusations dogging Insurance Commissioner Ricardo Lara will lead is hard to tell. State records show that insurance industry executives and their relatives gave tens of thousands of dollars to Lara’s campaign committee–even as he intervened on their behalf in cases before his agency. 

We’ll know more on Aug. 31. That’s when Lara has promised to make public his communications and calendars of meetings with the executives.

CA Supreme Court Puts an End to Mercury Insurance Company’s 20-Year Battle to Escape Accountability for Unlawful Fees 

Los Angeles, CA -- Mercury Insurance Company will pay at least $27.6 million in civil penalties for overcharging hundreds of thousands of California motorists in violation of insurance reform Proposition 103. Late yesterday, the California Supreme Court rejected the company’s last-ditch effort to evade the fine – the largest ever against a car insurance company in California.

Farmers Insurance Is Caught Overcharging Its Most Loyal Customers in Violation of Proposition 103

Los Angeles, CA -- Farmers Insurance systematically overcharged its most loyal, longtime California customers from 2008 to 2018, according to evidence uncovered as part of an investigation ordered by the California Insurance Commissioner. Now, with a public hearing scheduled for June and facing millions of dollars in civil damages and penalties, Farmers and its affiliate, Mid-Century Insurance, are urging a Los Angeles Superior Court to stop the agency’s investigation.

Appellate Court Holds Mercury Insurance Accountable for Phony Premium Overcharges

Los Angeles, CA -- A state Court of Appeal in Orange County has upheld $27 million in civil penalties imposed by former Insurance Commissioner Dave Jones against Mercury Insurance Company for falsely claiming premium overcharges its agents tacked on top of its approved rates were “broker fees.”

Consumer Watchdog Applauds New California Rules Ending Gender-Based Discrimination in Auto Insurance Pricing

Los Angeles, CA – California auto insurers may no longer charge drivers more based on their gender under new rules just issued by the California Department of Insurance.

The rules bring auto insurance prices into line with the provisions of voter-approved Proposition 103 that prohibit unfair and discriminatory pricing and require rates to be based primarily on a person’s driving record and experience, not personal characteristics.

​​​​​​​US Supreme Court Refuses to Hear Mercury Insurance Challenge to Prop 103 Insurance Rules that Saved California Motorists Over $100 Billion

SANTA MONICA, CA - The U.S. Supreme Court today rejected a challenge brought by Mercury Insurance, State Farm and other insurance companies across the United States to insurance reform Proposition 103. That California law has saved motorists over $100 billion since 1988 by regulating insurance companies to limit price gouging, profiteering, inflated executive salaries and other unjustified expenses. (Mercury Casualty Company v.

Consumer Watchdog Petitions Commissioner to Stop Travelers from Overcharging Small Business Owners

Santa Monica, CA – Consumer Watchdog has filed a petition challenging the insurance rates that two companies in the Travelers Group want to charge small businesses. The consumer group is seeking a 20% cut to the rates Travelers currently charges, which would deliver about $20 million in savings to policyholders.

Travelers’ rate proposal would affect nearly 16,000 businesses in the companies’ Master Pac program that provides liability and property coverage for small businesses such as barber shops, pet sitters, employment agencies, speech therapists, and car washes.