The Sacramento Superior Court issued a decision in mid-January rejecting an insurance industry challenge to the California insurance commissioner’s regulations under Proposition 103.
Among other things, Prop. 103 limits the amount of advertising costs insurers may pass on to consumers through insurance premiums.
Commissioner Dave Jones called the ruling in Mercury v. Jones an important win for California.
The case began when Mercury sued Jones to challenge an order reducing Mercury’s homeowner insurance rates.
Trade associations, including the American Insurance Association, National Association of Mutual Insurance Companies, Pacific Association of Domestic Insurance Companies, the Personal Insurance Federation of California and the Property Casualty Insurers Association of America joined the lawsuit against Jones to challenge his regulations under Prop. 103.
Prop. 103 requires, among other things, for property/casualty insurers to justify their rates.
Jones said his regulation prohibits insurers from “saddling consumers with the cost of insurers’ generalized or brand advertising for such things as corporate sponsorships of sporting events, purchases of luxury boxes, and insurer name branding on stadiums and arenas.”
Topics California Carriers Legislation
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