SACRAMENTO -- State regulators have ordered Mercury Casualty Co. to cut its homeowner's insurance rates by 8.2%, but the Los Angeles-based insurer is contesting the ruling.
"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," said California Insurance Commissioner Dave Jones in a statement released Tuesday.
After holding a public hearing, Jones approved a decision by a state administrative law judge that rejected a 7.3% increase proposed by Mercury. Jones used his powers to declare Mercury's request for a rate hike as "excessive."
Mercury did not respond to requests for comment on the commissioner's announcement. However, in legal filings, the company argued that its "homeowners premiums are among the lowest in the state." The commissioner, it contended, relied on outdated data and "incorrect legal and factual conclusions."