NEW YORK–(BUSINESS WIRE)–The ACE Group today issued the following statement concerning the announcement made on Friday, December 31, 2010, by the New York State Attorney General related to workers’ compensation premium surcharges collected by insurers:
ACE is pleased to resolve this issue, which has impacted all insurers that wrote workers’ compensation coverage in New York since 2000. The issue was caused by two conflicting state rules that created a discrepancy between the surcharge and assessment formulas that support the operation of the New York workers’ compensation system. This discrepancy resulted in the accumulation of funds over many years. The company complied fully with the state’s workers’ compensation laws in collecting the specific premium surcharge amounts from customers and made numerous attempts to address the discrepancy with the state.
The payment of funds to the state, which is not a fine, followed recently enacted amendments to the workers’ compensation law that eliminated the discrepancy. The company was reserved specifically for this eventuality.
Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com.
The ACE Group
Stephen Wasdick, 212-827-4444