Mercury Insurance

Mercury, which had sought a 7.3% increase, responds by filing a lawsuit seeking to block Insurance Commissioner Dave Jones’ ruling.

By Marc Lifsher, Los Angeles Times
March 5, 2013, 6:36 p.m.

SACRAMENTO — State regulators have ordered Mercury General Corp. to cut its homeowners insurance rates by 8.2%, instead of the increase in premiums that the company had sought.

As a result, the Los Angeles insurer is contesting the ruling in court.

The rate cut was announced by California Insurance Commissioner Dave Jones.

“The rate reduction provided for in this decision would offer much-needed financial relief for homeowners and would no doubt help consumers keep more of their hard-earned dollars in today’s tight economy,” Jones said in a statement Tuesday.

After holding a public hearing, Jones approved a decision by a state administrative law judge to reject a 7.3% increase proposed by Mercury. And the judge recommended the 8.2% decrease.

Jones used his powers to declare Mercury’s request for a rate hike as “excessive” and, instead, he ordered the rate reduction.

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