Mercury Insurance Group
Encyclopedia
Mercury Insurance Group is an American
automobile
and property insurance
company
founded by George Joseph
in 1961. The company is headquartered in Los Angeles, CA.
Representatives of Mercury Insurance were quick to argue that the leak of the conduct exam was a politically motivated move meant to benefit California Insurance Commissioner Steve Poizner
, a Republican candidate for California governor in the 2010 gubernatorial election
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
and property insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
founded by George Joseph
George Joseph
George Joseph, founder of Mercury Insurance Group of Los Angeles, was born in West Virginia in 1921. The son of a West Virginia restaurateur of Lebanese origin, he served as a B-17 navigator in World War II, serving in some 50 missions, and then attended Harvard...
in 1961. The company is headquartered in Los Angeles, CA.
History
George Joseph founded Mercury Insurance in 1961 after working in the industry for a few years. Created to be a low cost alternative to larger insurance companies, Mercury Insurance found a profitable niche by offering private passenger automobile policies at a reduced premium for better than average risks. The key to this strategy was, and continues to be very tight underwriting and tight claims handling. The company operated solely in California until 1990, and since then has started expanding into a few other tough market states where nationwide carriers had ceased to operate.Criticism
A March 2007 market conduct exam by the California Department of Insurance alleged that Mercury Insurance may have repeatedly engaged in practices that discriminated against active members of the U.S. military, the unemployed, those of certain a occupation such as bartenders and painters, and unmarried adults living together. Additionally the company was alleged to have been inconsistent in its application of certain discounts, which resulted in some of its customers being overcharged.Representatives of Mercury Insurance were quick to argue that the leak of the conduct exam was a politically motivated move meant to benefit California Insurance Commissioner Steve Poizner
Steve Poizner
Stephen Leo "Steve" Poizner is an American businessman/entrepreneur and conservative Republican politician, who was elected State Insurance Commissioner of California in November 2006, and concluded the 4 year term in January 2011...
, a Republican candidate for California governor in the 2010 gubernatorial election
California gubernatorial election, 2010
The 2010 California gubernatorial election was held November 2, 2010 to elect the Governor of California. The primary elections were held on June 8, 2010. Because constitutional office holders in California are prohibited from serving more than two terms in the same office since 1990, incumbent...
.