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Prop 17, Mercury Insurance Claims Mocked In New Ad (VIDEO)

First Posted: 06/02/10 06:12 AM ET Updated: 05/25/11 05:00 PM ET

Mercury Insurance

A new advertisement by documentary filmmaker Robert Greenwald aims to derail Mercury Insurance Group's efforts to change the rules that ultimately determine premiums paid by its auto-insurance customers.

Mercury, a company derided by the California Department of Insurance for its "contempt toward and/or abuse of its customers," has spent $3.5 million to get Proposition 17 onto the state's balllot in time for a June election.

Proposition 17 would allow auto-insurers to take into account a customer's past coverage, rewarding many customers who have never lapsed, but penalizing others who have.

The measure's opponents argue that Prop 17 will hurt military personnel and others who may have good reasons for deciding to drop their insurance and then resume their coverage.

Mercury CEO George Joseph told the LA Times that Prop 17 supporters want nothing more than to lower insurance rates for customers and spur competition. However, in the same interview, George acknowledged that he and his company stood to gain from it's passage.

Greenwald's ad, titled "Mercury Insurance Wants You To Pay More For Your Car," mocks Mercury and fellow Prop 17 supporters for their altruistic claims.

WATCH:

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Filed by T.J. Ortenzi  |