A state appellate court Friday upheld the California Department of Insurance’s decision to deny Mercury Casualty Co.’s 2009 request to raise homeowner insurance premiums.

The Third District Court of Appeal decision stems from the state agency’s pushback against the Mid-Wilshire-based Mercury General Co. subsidiary’s attempts to pass off marketing costs to consumers. Dave Jones, California’s insurance commissioner, said in a statement that advertising costs with no material benefit to consumers cannot justify rate hikes.

“Insurers spend millions of dollars on brand advertising which provides zero benefit to consumers, including paying tens of millions for stadium and arena naming rights and sponsorships of tournaments and other sporting events,” said Jones. “The appellate court rejected the insurers’ legal challenge and affirmed my authority to stop insurers from passing along to consumers brand advertising costs, such as expenses for sports stadium naming rights, sponsoring sporting events, or advertising the name of the insurance companies on a blimp.”

Insurance regulators said their actions against Mercury saved California consumers more than $11 million and lowered homeowners’ insurance rates by 5.4 percent.

Deals & Dealmakers reporter Henry Meier can be reached at [email protected]. Follow him on Twitter @henry_meier.