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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

Client Sues ACE Unit Over Stalled, then Denied, Claim

March 3rd, 2014 - A Michigan limited liability company has sued ACE American Insurance Co. claiming it dragged out payment on a theft loss claim for nearly two years and then refused to make payment.

AMI Stamping Co., the ACE customer, had acquired a Detroit gear manufacturer in 2010. Along with that came property and equipment owned by the acquired company.

In January 2012, AMI said that it was given notice that the Detroit facility had been burgled and equipment was stolen. AMI said it notified both the Detroit Police and ACE.

ACE hired Engle Martin & Associates, a claims agency, to process the case. AMI said that it complied with all requests for information sought by Engle Martin, but it wasn’t until February 6th, 2013, that it heard that the insurer was ready to settle the claim. However, the amount stated was $138,100, which AMI said was the forced liquidation value of the equipment.

AMI had a replacement value policy with ACE, and in March 2013, notified the insurer that the value of the equipment and personal property was $1.9 million.

Then, a law firm hired by ACE wrote AMI, telling the firm it wanted AMI to produce a witness who would testify under oath regarding the claim. AMI again says it complied, but said that on Nov. 13, 2013, ACE denied the claim on the basis that the value of the equipment had been misrepresented and that AMI violated a protective safeguards endorsement.

In a suit filed in Michigan State Court (which ACE has now asked to remove to federal court), AMI said that ACE’s denial is contrary to the policy and therefore breached it. It asked for damages, and said that since the claim was not reasonably in dispute, that ACE also owes it 12 percent interest.

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