The furore enveloping Combined Insurance over dubious sales techniques is not the first time the US-owned company has faced investigation by the Australian regulator.

In November 2000 the Australian Securities and Investments Commission (ASIC) obtained orders in the Federal Court against Combined Insurance over the sale of inappropriate policies to members of 18 Aboriginal communities.

The insurer also agreed at that time to an enforceable undertaking under which it would review its training and compliance programs “to ensure their representatives are fully trained and aware of their responsibilities under the law”.

ASIC said agents of Combined sold accident insurance policies and sickness policies to people in remote Aboriginal communities in NSW, Victoria, WA, Tasmania and Queensland.

The policies provided cover against a range of injuries caused by an accident while travelling on a plane, monorail, bus, train, tram, truck, car, or travelling in an elevator.

ASIC found some agents failed to properly explain the policies, claimed benefits they did not have, completed policies on behalf of some consumers without their knowledge and used “unfair pressure or influence”.

The court orders included requirements that Combined send corrective notices to the affected policyholders and offer premium refunds.

In April 2008 the global operations of Ace Insurance bought Combined for $US2.56 billion ($3.33 billion), but the Australian branch continued to operate separately for the next 30 months.

Announcing the decision to bring Combined into the Australian operation in October 2010, Ace said the companies’ accident and health back-office functions would be integrated, but the 132 Combined employees “will retain their individual distribution models and brands”.