Prop 17 opposed by many, Mercury Insurance to face lawsuit


OJORF-00013372-001Prop 17 bill, which was on the verge of being passed this June, was not passed by the Democratic Party, California. This bill, Prop 17 gives insurance companies the ability to make consumer’s loyalty or auto insurance purchase and management history one of the factors which determine the insurance coverage and monthly coverage rates.

The new changes were brought to the voting session by Mercury Insurance. Prop 17 being one of Mercury’s top priorities of the year has cost the company $5.25 million so far. Mercury Insurance ranked as one of California’s biggest names in auto insurance, has created a strong and well funded campaign for the Prop 17 bill.

The bill was opposed to the aged section of society as they served as a hindrance to their personal preferences.

“The Democratic Party voted to stand with consumers against a self-serving insurance company that is trying to buy an election so it can charge drivers higher premiums. Opposing Prop 17 is a no-brainer for anyone who allies themselves with average Californians ahead of insurance companies.” Doug Heller the advocate representing consumers said.

Doug Heller strongly encouraged the Stop Prop 17 campaign.

Consumers sometimes do not use their vehicles during a specific period of time and hence do not purchase auto insurance for the mentioned period of time. These consumers will be charged with a very high increase in their coverage and are not eligible for a new insurance policy. Consumers who paid a bill late or postponed a payment within the last half decade can be subjected to this increase.

Prop 17 has still not been implemented in California state.

Prop 17 also saw opposition from, Consumer Federation of California, the California Alliance of Retired Americans, California Federation of Teachers, Consumer Watchdog, California Nurses Association, Consumers Union and California Labor Federation.

Poizner expressed his decision to file a lawsuit again Mercury Insurance for frauds and charges of illegal treatment against the company. Steve Poizner, California Insurance Commissioner opposed Prop 17 and insisted his lawsuit will prove Mercury Insurance as guilty of fraud. The company has always been marked with low a J.D. Power customer satisfaction rating which does not help Mercury Insurance with the case.

The lawsuit charges Mercury Insurance with large scale overbilling and illegal prejudice by the company and its employees. THE CDI report on the company shows it has been charging unlawful surcharges over the past decade and a half and did not give consumers the discounts they are entitled to by the law.