ACE is listed on the New York Stock Exchange and has numerous American stockholders. However, many of ACE Limited's officers and directors, who are not US residents, might be immune from civil liability under US Securities laws designed to ensure corporate accountability. This is a significant benefit of the ACE board's decision to reincorporate in Switzerland during 2008.
ACE Group Pays Fine in California Regulatory Settlement
April 7th, 2014 - ACE Group has agreed to pay $100,000 to resolve a complaint by California Insurance regulators that claim it was out of compliance with state rules.
The insurer did not admit any wrongdoing but agreed to the penalty as part of a deal to end issues discovered in a market conduct exam begun in late 2008.
The California Department of Insurance had issued a notice of non-compliance to ACE following its conclusion of the exam, which was carried out by its Field Rating and Underwriting Bureau and ended January 31st, 2009. A written report showing alleged violations of California insurance regulations was filed in late 2009.
ACE denied allegations contained in the notice of non-compliance. The state noted that from the end of the examination until now ACE has met with regulators “to address concerns arising from the exam.”
The notice of non-compliance claims that ACE charged incorrect rates on various farm, carnival and festival liability policies. It is also claimed that ACE made miscalculations in rates it charged to schools, rodeos and marinas.
The department charged that ACE did not maintain appropriate documentation of information that it used in its marina policies. Nor did it maintain information for its psychologist programs. In both instances, the department said those shortcomings created a presumption that ACE “applied rates that were excessive, inadequate and/or unfairly discriminatory.”
The consent order noted that ACE has made refunds to any policyholders adversely affected by its non-compliance.
The department had initially put ACE on notice that it could seek penalties of $5,000 for each of the insurer’s violations of state law, or $10,000 if it found them to be willful.
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