On October 26, 2007, Oregon AG Hardy Myers announced a settlement with ACE Group Holdings, Inc. and its subsidiaries (“ACE”) over allegations of improper, fictitious quoting and steering of insurance businesses. The AG filed a stipulated judgment in Marion County State Circuit Court, in which ACE agreed to pay $4.5 million to a group of eight Attorneys General in settlement of their antitrust claims with no admission that ACE violated any laws. In addition to Oregon, the task force is comprised of Attorneys General from Texas, Florida, Massachusetts, Hawaii, Michigan, West Virginia, and the District of Columbia.
According to the Oregon AG’s press release, the settlement agreement mandates comprehensive injunctive relief including the disclosure of compensation ACE pays to insurance brokers. The Oregon AG also reports that the multi-state investigation indicated that ACE “participated in fictitious quoting and steering of business and other schemes in the commercial insurance market, orchestrated by Marsh & McLennan of New York.” As a result, the Oregon AG’s press release claims, “large and small companies, nonprofit organizations, and public entities that purchased commercial lines of insurance from ACE were often misled into believing they were receiving the most competitive commercial premiums available.”
According to the settlement, ACE will be required to abide by certain reforms and, in addition, disclose the actual amount of payments made to insurance brokers upon request from its customers and prospective policyholders. The Oregon AG reports that ACE cooperated with the multi-state task force and agreed to provide assistance to the states as they continue their investigation.
