[LTPC-disc] Bad Advice = Bad Decision = Find an Attorney
Doug Burg
ltpc-disc@ltpcalums.com
Wed, 11 Jun 2003 10:19:52 -0400
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Jane,
I'm not an attorney, but it seems to me that you may have been wronged =
through the bad advice that your RSM gave to you. In March, there were =
clear indications that we going to possibly be shut down. Those rumors =
started in earnest in August of 2002. So I know it was on the table =
last year.
My advice: Go find a good attorney.
Thanks,
Doug
----- Original Message -----=20
From: Jane Kopecky=20
To: Doug Burg=20
Sent: Tuesday, June 10, 2003 11:50 AM
Subject: RE: [LTPC-disc] Agenda For Upcoming Phone Call with =
Progeny/Cendant Management
Doug, I and my RSM John Krohn, have both sold blocks of business =
before. (I was a group insurance producer and had a block of clients =
numbering about 30 and generating about $75,000 in renewal commissions.) =
In John's case, I believe he had a book of previously written LTC =
business with non-LTPC carriers. A book of business usually sells for =
between 75% and 300% of the renewal commissions, depending on the type =
of insurance (health is usually low because the turnover is higher, =
while life is usually low becuase turnover is very low). How about an =
outright buy out of the renewals at the annual commission times 1.5, or =
2, or whatever. A compromise to vesting everyone. Agents get a lump =
sum of a year and a half to two years of the value of their renewals, =
Progeny gets all the renewals, and Progeny settles quickly. Using this =
approach, Progeny "buys" and "owns" the business and the question of who =
the block belongs to will never be in question again. I think they'd =
jump at the chance to limit their liability to only 1.5 to 2 years of =
renewals rather than defending a class action suit, and the question of =
ownership would be settled once and for all.
And just as an FYI, I sold my block on March 1, 2003 after =
discussing with my RSM that the main reason I was not as successful as I =
wanted to be with LTPC was because my attention was divided between =
servicing my existing block and trying to build a business with LTPC. =
As you can guess, I'm pretty ticked off that I dumped a block of $75K a =
year in renewals to focus on LTPC only to be dumped by them 2 month's =
later. Pretty lousy.=20
--- Jane Kopecky
--- kopeckyjma@earthlink.net=
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<DIV><FONT face=Arial size=2>Jane,</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>I'm not an attorney, but it seems to me that you
may have been wronged through the bad advice that your RSM gave to you. In
March, there were clear indications that we going to possibly be shut
down. Those rumors started in earnest in August of 2002. So I know
it was on the table last year.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>My advice: Go find a good
attorney.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Thanks,</FONT></DIV>
<DIV><FONT face=Arial size=2>Doug</FONT></DIV>
<DIV> </DIV>
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<DIV style="FONT: 10pt arial">----- Original Message -----
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
title=kopeckyjma@earthlink.net href="mailto:kopeckyjma@earthlink.net">Jane
Kopecky</A> </DIV>
<DIV><B>To:</B> <A title=doug@dougburg.com
href="mailto:doug@dougburg.com">Doug Burg</A> </DIV>
<DIV><B>Sent:</B> Tuesday, June 10, 2003 11:50 AM</DIV>
<DIV><B>Subject:</B> RE: [LTPC-disc] Agenda For Upcoming Phone Call with
Progeny/Cendant Management</DIV></DIV>
<DIV><FONT face=Arial size=2></FONT><BR></DIV>
<DIV><FONT face="MS Sans Serif" size=2>Doug, I and my RSM John Krohn, have
both sold blocks of business before. (I was a group insurance producer
and had a block of clients numbering about 30 and generating about $75,000
in renewal commissions.) In John's case, I believe he had a book of
previously written LTC business with non-LTPC carriers. A book of
business usually sells for between 75% and 300% of the renewal commissions,
depending on the type of insurance (health is usually low because the
turnover is higher, while life is usually low becuase turnover is very
low). How about an outright buy out of the renewals at the annual
commission times 1.5, or 2, or whatever. A compromise to vesting
everyone. Agents get a lump sum of a year and a half to two years of
the value of their renewals, Progeny gets all the
renewals, and Progeny settles quickly. Using this approach,
Progeny "buys" and "owns" the business and the question of
who the block belongs to will never be in question again. I
think they'd jump at the chance to limit their liability to only 1.5 to 2
years of renewals rather than defending a class action suit, and the
question of ownership would be settled once and for all.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face="MS Sans Serif" size=2>And just as an FYI, I sold my
block on March 1, 2003 after discussing with my RSM that the main reason I
was not as successful as I wanted to be with LTPC was because my attention
was divided between servicing my existing block and trying to build a
business with LTPC. As you can guess, I'm pretty ticked off that
I dumped a block of $75K a year in renewals to focus on LTPC only
to be dumped by them 2 month's later. Pretty
lousy.</FONT> </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face="MS Sans Serif" size=2>
<DIV>--- Jane Kopecky</DIV>
<DIV>--- <A
href="mailto:kopeckyjma@earthlink.net">kopeckyjma@earthlink.net</A></FONT><FONT
size=2></DIV></DIV></FONT></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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