ACE Ltd., a Bermuda-based insurance company, announced on Thursday that it had terminated two executives and suspended three more unnamed employees in the wake of New York Attorney General Eliot Spitzer’s probe into the bid-rigging practices in the insurance industry. Spitzer accused the insurance broker Marsh & McLennan Cos. of directing clients to insurers who paid “incentive commissions” to the broker for a certain level of business provided.

The fired executives are ACE Casualty Risk President Geoffrey Gregory and his Assistant Vice-President Patricia Abrams. Ms. Abrams pleaded guilty of bid-rigging and is now cooperating with the investigators. According to the company, the firings and suspensions were caused by the improper past conduct and failure to collaborate with the attorney general’s or internal investigation.

Ace Ltd. has launched a campaign to monitor and improve its compliance with best underwriting practices, and avoid real or any appearance of conflicts of interest. Steps taken include the issuance of the new, detailed guidelines relating to the way the firm works with brokers and submits quotes. The company has pledged to the disclosure of any commissions paid to brokers to policyholders on the declarations page of all commercial policies. Ace has already terminated all contingency commissions. The company will appoint a business-practices compliance officer and hire a consulting firm to review and recommend enhancements to the company’s business-practice training, compliance and controls. These measures should strengthen the companywide commitment to ethical conduct.