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California Appeals Court Upholds DOI Right to Set Rates

The California Court of Appeal upheld a ruling by the Los Angeles Superior Court dismissing a lawsuit from Mercury Insurance Co. which challenged the authority of State Insurance Commissioner Dave Jones to reduce the company’s rates...
May 7, 2013

The California Court of Appeal upheld a ruling by the Los Angeles Superior Court dismissing a lawsuit from Mercury Insurance Co. which challenged the authority of State Insurance Commissioner Dave Jones to reduce the company’s rates. Jones called for the insurer to reduce its homeowners’ rates by 8.18 percent, following a public hearing on the company's request to hike rates by 7.3 percent. According to Jones, “The Court of Appeal clearly affirmed the insurance commissioner's exclusive authority to adjudicate disputes between the Department of Insurance and insurers in an administrative forum and that insurance companies such as Mercury must wait until I render a final decision before seeking judicial intervention.” Mercury declined to comment or state if an appeal of the decision is planned.

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