TAMPA BAY AREA Mercury Insurance Fined

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Business briefs

Published: May 9, 2006

http://www.tbo.com/news/money/MGBQYTAKZME.html

TAMPA BAY AREA

Mercury Insurance Fined

Florida insurance regulators Monday announced a $1 million fine for

American Mercury Insurance Company and its sister insurer, Mercury

Insurance Company of Florida, for improperly denying homeowner and

auto claims. The companies admitted no wrongdoing, but also agreed

to refund customers $2 million. American Mercury, a homeowner

insurer, also raised rates for mold coverage with getting state

permission, regulators said. The violations occurred between January

1, 2002 and June, 30, 2005.

The investigation began after a large number of complaints from

consumers about American Mercury's failure to cover damage to

screened pool enclosures during the 2004 hurricane season.