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News: 2014 Press Release
For Release: June 13, 2014
Media Calls Only: 916-492-3566
Court affirms Insurance Commissioner’s Rate Regulation Authority
Rules in department’s favor in Mercury v. Jones
SACRAMENTO, Calif. - Insurance Commissioner Dave Jones issued the following statement regarding the Sacramento Superior Court's ruling in Mercury v. Jones received on June 13.
"The Court's ruling affirms my department's position that the rate I previously approved is fair to Mercury, is based carefully on the law, and assures that consumers do not pay the excessive rate Mercury attempted to extract.
In its ruling, the Court agreed with my position that the 20th Century case articulates the standard for deep financial hardship, and that Mercury was required to make a showing of confiscation before it could ask for rate relief on the basis of financial hardship. The court also agreed with my interpretation of the Department's institutional advertising regulation.
This is a victory for Mercury's consumers who will be able to keep the rate reductions I previously ordered."
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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California, regulating the $123 billion insurance marketplace. In 2013 the California Department of Insurance received more than 170,000 calls from consumers and helped recover over $63 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.