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

Securities Dealer Sues ACE Unit Illinois Union in Effort to Force Defense, Indemnity

April 24, 2012 - A West Coast securities dealer is suing two of its insurers seeking defense and indemnity for claims arising from alleged investment losses.

Pacific West Securities Inc., of Renton, Wash., sued Illinois Union Insurance Co. and Endurance American Specialty Insurance Co. in Washington Superior Court in Kings County. Endurance has now asked to remove the action to U.S. District Court in Seattle.

The legal action commenced after Pacific West tendered to ACE Group-owned Illinois Union and Endurance for its defense and indemnity in an action that has been brought against it by FINRA, the Financial Industry Regulatory Authority.

In its removal petition, New York-based Endurance noted that its policy is excess of the ACE primary policy, which has a limit of $1 million of coverage. “Pacific West would not have tendered to Endurance unless it believed that the FINRA action sought damages in excess of ACE’s $1 million primary limit.”

Endurance attorneys also noted that Illinois Union, which is based in Chicago, has consented to the removal petition.

FINRA’s allegation pertains to 42 claimants who each claimed to have made investments ranging from $10,000 to $1.8 million each with Pacific West and who are now seeking damages for the loss of a “substantial portion” of those investments.

There was no indication in court filings made available so far as to the specific nature of the complaints or whether they were common to one another or represented separate allegations against Pacific West.

FINRA is a non-governmental regulator for all securities firms doing business in the United States. It oversees both brokerage firms and registered securities representatives.

Like us on facebook!

Please note that article images are for illustrative purposes only. Images do not necessarily depict the actual facts, events, or people discussed in this story.