[LTPC-disc] FW: LTPC - Suggested Actions
Deb McCarthy
dmccarth@bellsouth.net
Wed, 28 May 2003 14:09:09 -0400
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HI, everyoneHi Dru, regarding issue 6 and suggested action 2, LTPC is =
keeping Jennifer Harding on Staff to handle all client service. Not =
only is LTPC maintaining it's license in all States but Jennifer Harding =
is also licensed in all States. =20
FYI,=20
Deb
----- Original Message -----=20
From: Dru Greenberg=20
To: ltpc-disc@ltpcalums.com=20
Sent: Wednesday, May 28, 2003 1:33 PM
Subject: [LTPC-disc] FW: LTPC - Suggested Actions
HI, 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):
=20
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.=20
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:=20
1.. Paragraph I.B "LTPC will provide prospective sales leads to =
the SA according to company policy"=20
2.. Paragraph I.C "LTPC will provide field training and sales =
management to aid the SA in his/her efforts"=20
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."=20
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. =20
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. =20
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.=20
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.=20
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.=20
8.. Clients - Clients also have some rights. They bought from us =
and expect us to service them.=20
=20
SUGGESTED ACTIONS
=20
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.=20
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.=20
3.. Otherwise ignore all of LTPC's attempts to revise the contract =
postmortem.=20
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.
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<DIV><FONT face=3DArial size=3D2>Hi Dru, regarding issue 6 and suggested =
action 2,=20
LTPC is keeping Jennifer Harding on Staff to handle all client =
service. =20
Not only is LTPC maintaining it's license in all States but Jennifer =
Harding is=20
also licensed in all States. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>FYI, </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Deb</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Ddru1@optonline.net href=3D"mailto:dru1@optonline.net">Dru =
Greenberg</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dltpc-disc@ltpcalums.com=20
href=3D"mailto:ltpc-disc@ltpcalums.com">ltpc-disc@ltpcalums.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 28, 2003 =
1:33=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [LTPC-disc] FW: LTPC - =
Suggested=20
Actions</DIV>
<DIV><BR></DIV>
<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"> =20
</SPAN>I have read your emails, reviewed the contracts and LTPC=20
correspondence, and spoken to several insurance professionals.<SPAN=20
style=3D"mso-spacerun: yes"> </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]> <o:p></o:p></SPAN></FONT></P>
<DIV class=3DSection1>
<OL style=3D"mso-margin-top-alt: 0in" type=3D1>
<LI class=3DMsoNormal=20
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"=20
size=3D3><SPAN style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt">E&O=20
Insurance</SPAN></FONT></B> =96 E&O is typically issued on a =
=93claims made=94=20
basis.<SPAN style=3D"mso-spacerun: yes"> </SPAN>In other =
words, for LTPC=20
to be insured against our actions in the future LTPC must maintain =
the=20
coverage and continue 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=20
Before paying any attorney anything be sure he/she is well qualified =
in=20
insurance law.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Most =
attorneys=20
are not.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Without in =
an depth=20
understanding of insurance law an attorney is not worth the money =
=96 contract=20
law expertise 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"> </SPAN>There is nothing in the =
contract=20
providing for the contingency that LTPC ceases to solicit new =
business and,=20
as a result, terminates all agents.<SPAN style=3D"mso-spacerun: =
yes"> =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 =
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-STYLE: italic">Paragraph=20
I.B</SPAN></FONT></I> =93LTPC will provide prospective sales leads =
to the SA=20
according to company policy=94=20
<LI class=3DMsoNormal=20
style=3D"mso-list: l4 level2 lfo1; tab-stops: list 1.0in"><I><FONT =
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-STYLE: italic">Paragraph=20
I.C</SPAN></FONT></I> =93LTPC will provide field training and =
sales=20
management to aid the SA in 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"=20
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"> </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"> </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=20
and void as a result of LTPC=92s actions) to prohibit client =
contact.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Clearly, LTPC cannot =
unilaterally=20
mandate new contract provisions.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>
<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">Client contact for =
other=20
business</SPAN></FONT></B> - All of the provisions in <I=20
style=3D"mso-bidi-font-style: normal"><SPAN=20
style=3D"FONT-STYLE: italic">Paragraph V</SPAN></I> =96 =
=93Non-disclosure and=20
Non-Competition=94 are related to the value of the information, etc. =
to LTPC=20
as an ongoing business =96 which they are not.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Therefore, <I><SPAN=20
style=3D"FONT-STYLE: italic">Paragraph V</SPAN></I> does not apply.=20
<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 service=20
</SPAN></FONT></B>=96 Only an agent licensed in the policyholder=92s =
state may=20
change benefits.<SPAN style=3D"mso-spacerun: yes"> </SPAN>In =
other=20
words, it is not sufficient that LTPC is licensed in the state, the=20
individual who is 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"><B><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 </SPAN></FONT></B>=96 It is interesting that LTPC has =
ordered us=20
to refer all inquiries to them =96 but that is all it is.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Any complaint that is sent =
to an=20
insurance department will result in the insurance department =
contacting the=20
agent =96 us.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Since I =
will be=20
continuing in the insurance business, I have no intention of =
allowing LTPC=20
to cause me to hire an attorney to handle the complaint, ruin my =
reputation=20
or jeopardize the renewal of my license.=20
<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">Clients</SPAN></FONT></B> =96=20
Clients also have some rights.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>They bought from us and expect us to service them. </LI></OL>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]> <o:p></o:p></SPAN></FONT></P>
<H1><B style=3D"mso-bidi-font-weight: normal"><FONT face=3D"Times New =
Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">SUGGESTED =
ACTIONS</SPAN></FONT></B></H1>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]> <o:p></o:p></SPAN></FONT></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><SPAN style=3D"FONT-SIZE: =
12pt">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"> </SPAN>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.</SPAN></FONT>=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><SPAN style=3D"FONT-SIZE: =
12pt">Ask LTPC the=20
name of the licensed agent in your state that will handle service=20
requests.<SPAN style=3D"mso-spacerun: yes"> </SPAN>The answer =
to this=20
question will be of more than casual interest to the insurance =
companies, as=20
insurance departments hold them responsible for =
compliance.</SPAN></FONT>=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><SPAN style=3D"FONT-SIZE: =
12pt">Otherwise ignore=20
all of LTPC=92s attempts to revise the contract=20
postmortem.</SPAN></FONT> </LI></OL>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003><FONT face=3DArial color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003></SPAN> </DIV>
<DIV class=3DMsoNormal=20
style=3D"mso-list: l2 level1 lfo6; tab-stops: list .5in"><SPAN=20
class=3D540333514-28052003><FONT face=3DArial size=3D2>P.S. - I have =
read the emails=20
this morning after preparing this and agree there is potential for a =
class=20
action suit. However, I would rather take more agressive action =
and=20
leave LTPC to do the chasing of me, the insurance companies and our=20
clients, rather than initiating what could be an expensive and =
time=20
consuming class action suit with no guarantee of the=20
outcome.</FONT></SPAN></DIV></BLOCKQUOTE></BODY></HTML>
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