The lawsuit challenged the effectiveness of the division of INA under Pennsylvania corporate statutes into two separate companies -- an active insurance company and an inactive run-off company -- and claimed that under California law, California policyholders should retain the ability to require INA to process their claims.
Judge Warren noted that Proposition 64, passed by California voters on November 2, 2004, stipulates that such lawsuits can only be brought by plaintiffs who have suffered harm as a result of allegedly unfair business practices. The plaintiffs in this case did not claim that they or any policyholders had suffered any injury. Judge Warren further found that Proposition 64 properly applies to cases pending on the date of its enactment as well as to future cases. On the basis of Proposition 64 Judge Warren granted judgment in favor of the ACE companies.
The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the Standard & Poor's 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.acelimited.com