The California Supreme Court rejected Mercury Insurance Co.'s petition for review thereby upholding a $27.6 million fine that the state's insurance department imposed on the insurer for charging illegal fees.
In 2015, the department ordered Mercury Insurance to pay the fine for charging auto insurance customers fees without the state insurance commissioner's approval.
The department asked Mercury Insurance to stop the practice, but the insurer continued to allow its auto insurance agents to charge consumers $50 to $150 in illegal fees on top of the department-approved premium. Mercury improperly collected and charged unapproved fees on more than 180,000 transactions from 1999 to 2004.
The Supreme Court's ruling comes a few months after the state's Court of Appeal upheld the fine.