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


ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit or contact the clerk of the relevant court.

Case Number: 
2:04-cv-05184 Search Pacer
Opposing Party: 
QLM Associates Inc
Court Type: 
US District Court: 
District of New Jersey
Date Filed: 
Oct 22 2004

1. This is a class action against defendants Marsh & McLennan Companies, Inc. ("MMC"), Marsh Inc., Marsh USA Inc. ("Marsh USA"), and Seabury & Smith, Inc. d/b/a Marsh Advantage America ("Marsh Advantage") (together, "Marsh") for injunctive relief and damages, brought by Plaintiff, on behalf of itself and a Class (defined below), which have retained Marsh as their insurance broker during the Class Period (defined below)...
5. While purporting to provide independent and unbiased brokering services to them, Marsh failed and still fails to adequately disclose that it has entered into separate fee agreements, known as Placement Service Agreements, Market Services Agreements or Contingent Fee Agreements ("Contingent Fee Agreements") with certain insurance carriers. Through these Contingent Fee Agreements, Marsh receives kickback payments from insurance carriers as a reward for steering business to those carriers ("Contingent Fees" or "Kickbacks"), Marsh has also designed and implemented an elaborate and secret bid rigging scheme (the "Bid Rigging Scheme") to maximize its own Contingent Fees to the detriment of Its clients. As one Marsh executive stated to his subordinates, the size of the contingent commission payments to Marsh determined "who [we] are steering business to and who we are steering business from." NYAG Compl.8……
86. In 2002, ACE decided to enter the excess casualty market by creating a separate division, called the Casualty Risk Department.
87. ACE signed a Contingent Fee Agreement to gain access to the business Marsh controlled.
88. ACE also repeatedly provided the same type orB Quotes that AIG provided.
89. The B Quotes that ACE gave to .Marsh were often in prices requested by Marsh, even though a lower quote would have been justified by an underwriting analysis.
90. As ACE's President of Casualty Risk summarized:
"Marsh is consistently asking us to provide what they refer to as "B" quotes for a risk. They openly acknowledge we will not bind these "B" quotes in the layers we are be [sic] asked to quote but that they 'will work us into the program' at another attachment point. So for example if we are asked for a "B" quote for a lead umbrella then they provide us with pricing targets for that "B" quote. It has been inferred that the 'pricing targets' provided are designed to ensure underwriters 'do not do anything stupid' as respects pricing."
UPDATE - QLM Case Terminated 09/28/2007 - (see docket)

The provided text is an excerpt from a document filed in this case. For a full understanding of the case, one should read the complete court file, including the response.

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