[LTPC-disc] FW: LTPC - Suggested Actions

Wed, 28 May 2003 13:33:58 -0400

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--Boundary_(ID_tuUJ1EXOYoFFCzSSHNbbeQ)
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HI, everyoneHI, everyone.  I have read your emails, reviewed the contracts
and LTPC correspondence, and spoken to several insurance professionals.  I
offer the following (I hope it is helpful):

  1.. E&O Insurance – E&O is typically issued on a “claims made” basis.  In
other words, for LTPC to be insured against our actions in the future LTPC
must maintain the coverage and continue to pay premiums.
  2.. Lawyers – Before paying any attorney anything be sure he/she is well
qualified in insurance law.  Most attorneys are not.  Without in an depth
understanding of insurance law an attorney is not worth the money – contract
law expertise alone is not sufficient.
  3.. Contract termination – This is interesting.  There is nothing in the
contract providing for the contingency that LTPC ceases to solicit new
business and, as a result, terminates all agents.  The contract does,
however, specify the following:
    1.. Paragraph I.B “LTPC will provide prospective sales leads to the SA
according to company policy”
    2.. Paragraph I.C “LTPC will provide field training and sales management
to aid the SA in his/her efforts”
    3.. Paragraph I.D “LTPC will provide assistance in the processing of
applications by assigning a New Business Analyst and be diligent in all
aspects of processing and delivering of policies.”
There is more but I have quoted some of the most obvious.  The point is that
it can be argued that LTPC has voided the contract as a result of LTPC’s
failure to fulfill it’s obligations under the contract.

  4.. Ongoing client contact – There is nothing in the contract (which is
perhaps null and void as a result of LTPC’s actions) to prohibit client
contact.  Clearly, LTPC cannot unilaterally mandate new contract provisions.
  5.. Client contact for other business - All of the provisions in Paragraph
V – “Non-disclosure and Non-Competition” are related to the value of the
information, etc. to LTPC as an ongoing business – which they are not.
Therefore, Paragraph V does not apply.
  6.. Ongoing client service – Only an agent licensed in the policyholder’s
state may change benefits.  In other words, it is not sufficient that LTPC
is licensed in the state, the individual who is in contact with the client
must be licensed in the state.
  7.. Customer complaints to insurance departments – It is interesting that
LTPC has ordered us to refer all inquiries to them – but that is all it is.
Any complaint that is sent to an insurance department will result in the
insurance department contacting the agent – us.  Since I will be continuing
in the insurance business, I have no intention of allowing LTPC to cause me
to hire an attorney to handle the complaint, ruin my reputation or
jeopardize the renewal of my license.
  8.. Clients – Clients also have some rights.  They bought from us and
expect us to service them.

SUGGESTED ACTIONS

  1.. Contact the insurance companies and ask if they will honor a letter
from policyholders requesting that we continue to service their business.
In other words, will the insurance company agree to appoint anyone who
obtains such a letter from the policyholder as a “broker” and deal directly
with him/her and not through LTPC.
  2.. Ask LTPC the name of the licensed agent in your state that will handle
service requests.  The answer to this question will be of more than casual
interest to the insurance companies, as insurance departments hold them
responsible for compliance.
  3.. Otherwise ignore all of LTPC’s attempts to revise the contract
postmortem.

P.S. - I have read the emails this morning after preparing this and agree
there is potential for a class action suit.  However, I would rather take
more agressive action and leave LTPC to do the chasing of me, the insurance
companies and our clients, rather than initiating what could be an expensive
and time consuming class action suit with no guarantee of the outcome.

--Boundary_(ID_tuUJ1EXOYoFFCzSSHNbbeQ)
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<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt">HI, everyone.<SPAN style=3D"mso-spacerun: =
yes">&nbsp;=20
</SPAN>I have read your emails, reviewed the contracts and LTPC =
correspondence,=20
and spoken to several insurance professionals.<SPAN=20
style=3D"mso-spacerun: yes">&nbsp; </SPAN>I offer the following (I hope =
it is=20
helpful):</SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]>&nbsp;<o:p></o:p></SPAN></FONT></P>
<DIV class=3DSection1>
<OL style=3D"mso-margin-top-alt: 0in" type=3D1>
  <LI class=3DMsoNormal style=3D"mso-list: l4 level1 lfo1; tab-stops: =
list .5in"><B=20
  style=3D"mso-bidi-font-weight: normal"><FONT face=3D"Times New Roman" =
size=3D3><SPAN=20
  style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">E&amp;O =
Insurance</SPAN></FONT></B>=20
  =96 E&amp;O is typically issued on a =93claims made=94 basis.<SPAN=20
  style=3D"mso-spacerun: yes">&nbsp; </SPAN>In other words, for LTPC to =
be insured=20
  against our actions in the future LTPC must maintain the coverage and =
continue=20
  to pay premiums.=20
  <LI class=3DMsoNormal=20
  style=3D"mso-list: l4 level1 lfo1; tab-stops: list .5in"><B><FONT=20
  face=3D"Times New Roman" size=3D3><SPAN=20
  style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Lawyers =
</SPAN></FONT></B>=96 Before=20
  paying any attorney anything be sure he/she is well qualified in =
insurance=20
  law.<SPAN style=3D"mso-spacerun: yes">&nbsp; </SPAN>Most attorneys are =
not.<SPAN=20
  style=3D"mso-spacerun: yes">&nbsp; </SPAN>Without in an depth =
understanding of=20
  insurance law an attorney is not worth the money =96 contract law =
expertise=20
  alone is not sufficient.=20
  <LI class=3DMsoNormal=20
  style=3D"mso-list: l4 level1 lfo1; tab-stops: list .5in"><B><FONT=20
  face=3D"Times New Roman" size=3D3><SPAN=20
  style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Contract=20
  termination</SPAN></FONT></B> =96 This is interesting.<SPAN=20
  style=3D"mso-spacerun: yes">&nbsp; </SPAN>There is nothing in the =
contract=20
  providing for the contingency that LTPC ceases to solicit new business =
and, as=20
  a result, terminates all agents.<SPAN style=3D"mso-spacerun: =
yes">&nbsp;=20
  </SPAN>The contract does, however, specify the following:=20
  <OL style=3D"mso-margin-top-alt: 0in" type=3Da>
    <LI class=3DMsoNormal=20
    style=3D"mso-list: l4 level2 lfo1; tab-stops: list 1.0in"><I><FONT=20
    face=3D"Times New Roman" size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt; FONT-STYLE: italic">Paragraph =
I.B</SPAN></FONT></I>=20
    =93LTPC will provide prospective sales leads to the SA according to =
company=20
    policy=94=20
    <LI class=3DMsoNormal=20
    style=3D"mso-list: l4 level2 lfo1; tab-stops: list 1.0in"><I><FONT=20
    face=3D"Times New Roman" size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt; FONT-STYLE: italic">Paragraph =
I.C</SPAN></FONT></I>=20
    =93LTPC will provide field training and sales management to aid the =
SA in=20
    his/her efforts=94=20
    <LI class=3DMsoNormal=20
    style=3D"mso-list: l4 level2 lfo1; tab-stops: list 1.0in"><I=20
    style=3D"mso-bidi-font-style: normal"><FONT face=3D"Times New Roman" =

    size=3D3><SPAN style=3D"FONT-SIZE: 12pt; FONT-STYLE: =
italic">Paragraph=20
    I.D</SPAN></FONT></I> =93LTPC will provide assistance in the =
processing of=20
    applications by assigning a New Business Analyst and be diligent in =
all=20
    aspects of processing and delivering of policies.=94 =
</LI></OL></LI></OL></DIV>
<P class=3DMsoBodyTextIndent><FONT face=3D"Times New Roman" =
size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt">There is more but I have quoted some of the =
most=20
obvious.<SPAN style=3D"mso-spacerun: yes">&nbsp; </SPAN>The point is =
that it can=20
be argued that LTPC has voided the contract as a result of LTPC=92s =
failure to=20
fulfill it=92s obligations under the contract.<SPAN=20
style=3D"mso-spacerun: yes">&nbsp; </SPAN></SPAN></FONT></P>
<OL style=3D"mso-margin-top-alt: 0in" type=3D1 start=3D4>
  <LI class=3DMsoNormal=20
  style=3D"mso-list: l1 level1 lfo4; tab-stops: list .5in"><B><FONT=20
  face=3D"Times New Roman" size=3D3><SPAN=20
  style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Ongoing client contact =
=96=20
  </SPAN></FONT></B>There is nothing in the contract (which is perhaps =
null and=20
  void as a result of LTPC=92s actions) to prohibit client contact.<SPAN =

style=3D"mso-spacerun: yes">&nbsp; Clearly, LTPC cannot =
unilaterally=20
 mandate new contract provisions.&nbsp;&nbsp;=20
 
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l1 level1 lfo4; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3><SPAN=20
 style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Client contact for other=20
 business - All of the provisions in <I=20
 style=3D"mso-bidi-font-style: normal">Paragraph=20
 V =96 =93Non-disclosure and Non-Competition=94 are related =
to the value=20
 of the information, etc. to LTPC as an ongoing business =96 which they =
are=20
 not.&nbsp; Therefore, =
<SPAN=20
 style=3D"FONT-STYLE: italic">Paragraph V does not apply.=20
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l1 level1 lfo4; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3><SPAN=20
 style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Ongoing client service=20
 =96 Only an agent licensed in the policyholder=92s =
state may=20
 change benefits.&nbsp; In =
other words,=20
 it is not sufficient that LTPC is licensed in the state, the =
individual who is=20
 in contact with the client must be licensed in the state.=20
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l1 level1 lfo4; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3><SPAN=20
 style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Customer complaints to =
insurance=20
 departments =96 It is interesting that LTPC has =
ordered us to=20
 refer all inquiries to them =96 but that is all it is.<SPAN=20
 style=3D"mso-spacerun: yes">&nbsp; Any complaint that is sent =
to an=20
 insurance department will result in the insurance department =
contacting the=20
 agent =96 us.&nbsp; Since I =
will be=20
 continuing in the insurance business, I have no intention of allowing =
LTPC to=20
 cause me to hire an attorney to handle the complaint, ruin my =
reputation or=20
 jeopardize the renewal of my license.=20
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l1 level1 lfo4; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3><SPAN=20
 style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">Clients =
=96 Clients=20
 also have some rights.&nbsp; =
They=20
 bought from us and expect us to service them. </LI></OL>
<SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]>&nbsp;<o:p></o:p>
<H1>SUGGESTED =
ACTIONS</H1>
<SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]>&nbsp;<o:p></o:p>
<OL style=3D"mso-margin-top-alt: 0in" type=3D1>
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3>Contact the=20
 insurance companies and ask if they will honor a letter from =
policyholders=20
 requesting that we continue to service their business.<SPAN=20
 style=3D"mso-spacerun: yes">&nbsp; In other words, will the =
insurance=20
 company agree to appoint anyone who obtains such a letter from the=20
 policyholder as a =93broker=94 and deal directly with him/her and not =
through=20
 LTPC.=20
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3>Ask =
LTPC the name=20
 of the licensed agent in your state that will handle service =
requests.<SPAN=20
 style=3D"mso-spacerun: yes">&nbsp; The answer to this question =
will be of=20
 more than casual interest to the insurance companies, as insurance =
departments=20
 hold them responsible for compliance.=20
 <LI class=3DMsoNormal=20
 style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><FONT=20
 face=3D"Times New Roman" size=3D3>Otherwise ignore=20
 all of LTPC=92s attempts to revise the contract=20
 postmortem.&nbsp;</LI></OL>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003>&nbsp;</DIV>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003>&nbsp;</DIV>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003>P.S. - I have =
read the emails=20
this morning after preparing this and agree there is potential for a =
class=20
action suit.&nbsp; However, I would rather take more agressive action =
and leave=20
LTPC to do the chasing of me, the insurance companies and our=20
clients,&nbsp;rather than initiating what could be an expensive and time =

consuming class action suit with no guarantee of the=20
outcome.</FONT></SPAN></DIV></BODY></HTML>

--Boundary_(ID_tuUJ1EXOYoFFCzSSHNbbeQ)--