Regulators fine Loya Insurance for improper ads

June 15, 2012 6:28:12 AM PDT
Texas regulators have fined Loya Insurance Co. $300,000 for what investigators call unfair and deceptive business practices.

The Department of Insurance also says Loya failed to file accurate information on rates for its 210,000 drivers in Texas. The company has been ordered to provide details on how rates and discounts are determined.

The Dallas Morning News reported Thursday that Loya's improper practices involved claims made in radio commercials, on billboards and other advertising. The ads allegedly said auto insurance could be obtained with no down payment and no fees.

Loya declined comment on the consent order, which the company says was reached to avoid the expense and uncertainty of legal action. The order notes the company has revised its business practices and no longer makes such advertising claims.