[LTPC-discussions] Original attorney letter
ltpc-disc@ltpcalums.com
ltpc-disc@ltpcalums.com
Tue, 8 Jul 2003 22:54:31 EDT
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This was original letter to attorney several weeks ago.
Re: Termination from Progeny Marketing and Innovation, a subsidiary of
Cendant.
Will try and make this brief to find out if the three to four hundred plus
agents and home office staff have been wronged and mislead to by Progeny
Marketing and Innovation.
Progeny Marketing and Innovation sold Long Term Care Plans of insurance.
They marketed this coverage through banks, credit union, associations across the
country. The agents would receive the leads and call on the person who sent
it in and arrange an appointment to go over coverage and possibly sell a
policy.
Progeny has been doing this for 12 years and doing it well. Some of the
agents and management have been with them for 11 and 12 years. They grew to
several hundred agents in the field and support and training staff which was
centered in Nashville Tenn.
The agents were supported in the field by a regional sales manager who had
approximately 20 to 30 agents under him. He was responsible for hiring and
additional in the field.
March 26th of this year about half the agent staff about was given letters of
termination. Given a 60 day notice that their services would no longer be
needed. Along with the agents the training staff was terminated. The training
staff in Nashville was terminated before this. Basic training was done in
Nashville up until January. With training staff eliminated all training of new
agents was now done in the field locally.
Company was supposed to have a conference in early January of this year with
over a hundred agents. Agents had to sell $40,000 worth of business over a
period of three months during September, October, and November to qualify.
Probably over 100 qualified for this incentive and trip to Nashville for 3 nights.
Conference was postponed in January, then two more times. The last
scheduled conference was for end of April. This to was canceled. Agents invited to
April conference were those agents that were not terminated on March 26th. So
agents that were terminated first time were not given invitations to this
conference. Many who qualified for this trip were now being terminated. There
was another postponement but that was due to the worry about terrorism in
Orlando area. That is what they told us.
Second letter of termination was given out April 20th letting those remaining
that Progeny Marketing and innovation was now going to cease all operations
and close up eliminating all agents. This would be effective June 20, 2003.
No conference, company closing. However progeny marketing will still be in
business just not selling anymore long term care insurance through its agents in
the field.
Now to get down to the main points to see if the agents and the support staff
have a case against Progeny and Cendant.
1.Several agents in field and management claim to know that Progeny was
planning on shutting down from June of 2002.
2.Promises were made to staff in memos, voice mail, meetings that Progeny was
moving ahead. Great plans for the future. You had a future with Progeny.
Conferences planned. New training.
3.It seems that in the past two years Progeny decided to expand the sales
force, lowering standards and hiring and training about 20 agents every two weeks
in Nashville to send out in the field. To double the sales force.
4.One of the main reasons we become agents, the main incentive is that with
every policy sold we build a book of business. Over time we start earning
renewal commission after a year on policies sold. In this way we increase our
paychecks and build for our furture. Big incentive to stay with company.
5.To get vested of these renewal which would be between 3 percent and 7
percent of paid yearly premium you had to produce $350,000 of insurance premium
that was in force. This could take from 2 to 4 years depending on how good an
agent you were.
6.By hiring lets say 200 agents, train them put them in field over past two
years and then close company you basically stop agents from being vested. This
income remains with Progeny as a huge cash receivable over the life of the
policy which could be up to 15 years or more.
7.New agents hired over past two years and then quitting is good too. Not
only do they lose renewals, but first year commission if they are not with
Progeny. An example, policy is sold for $2000 a year. Commission to agent about
30 percent, or $600. Agent leaves before policy is issued he does not receive
$600. Renewals to company over ten years are about 10percent a year or another
$2000 to Progeny over ten years. Large cash receivable to Progeny.
8.Many in the sales force and management that this was decided to close up
Progeny now before those hundreds of agents in field could be vested.
9.Turnover of sales force was accepted because it made good business.
10.Standards lowered this past two years to build sales force just so they
would quit and bring in new agents only to close Progeny before they are vested.
11.We are not allowed to contact or approach our clients for 18 months from
termination. Even if our clients are friends or family and clients that we
brought in.
12.Progeny was still hiring and telling us that we were moving forward in
February. Agents were being trained in field by managers that knew that they were
not going to be around in a few weeks, and given termination papers. Down
here in Fort Lauderdale I satin on a training session in February of several new
agents who went through the hiring process, made promises too, and then
licensed and put in field and then terminated.
13.These new agents wasted weeks and months when they could have been working
for another company. Some came to work for Progeny and passed up other
opportunities and lost income to work for Progeny. Company knew it was closing
when it hired these agents. Training staff in Nashville was already eliminated.
Managers knew they were wasting their time in the field.
14.Progeny website was still up and advertising company and employment for
Long Term Preferred Care up until June 20th.
15.Were the agents and the support staff mislead into staying and writing
business when the company knew it was going to fold?
16.Were we mislead that we had a future when it appears they did this in this
manor so as not to vest agents?
17.Was there a conflict of interest? President f Progeny Mr. Robert Foreman
who over the year tells us things are doing well. That we should be captive
agents. That the company is not being sold. Then leaves Progeny and goes to
work for Long Term Preferred Associates which is a large brokerage. He
solicits ex Progeny agents in hopes that we work for his company as a broker, which
is the opposite arrangement of being a captive agent with Progeny. Solicits us
with new and better contract with vesting from day one.
18.Why was Progeny not sold? Maybe to keep all renewals.
19.Policies that we sold we can not deliver if approved after the 20th of
June.
20.We can not follow through with an application and make sure all
requirements are done to get policy approved after June 20th.
21.Hundreds of us worked and stayed with the company because we thought we
had a future. Believe we were lied to aobut company closing so we stay and
write business that we will never see renewals on, plus wasted almost a year with
Progeny if they knew we were closing, that this was their plan, and we could
have worked somewhere else the last year and built a book of business their.
22.Progeny made it look as if the company was going forward, by hiring new a
gents, mailings to clients, planning conventions that never materialized to
retain agents while all the while planning on its discontinuence.
This is the basics of our complaints. There are over a hundred of us that
are on a website for ex Progeny employees and we are trying to figure out if we
have a legitimate complaint. Possibly a class action suite against Progeny
and Cendant, or should I file separately and negotiate a seperate solution if I
have a case. Cendant might not be totally aware of this for they are a huge
company and Progeny is just a blip to them.
I am enclosing some of the emails that have been posted in the website and a
copy of my contract and some letters from Progeny.
Please take a look at this and let me know if we have a grievance so I can
relay it back to the other ex employees so we can then make a decision how to
proceed.
Sincerely
Richard Moore
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<HTML><FONT FACE=3Darial,helvetica><FONT SIZE=3D2 FAMILY=3D"SANSSERIF" FACE=
=3D"Arial" LANG=3D"0"><B>This was original letter to attorney several weeks=20=
ago. </B><BR>
<BR>
<BR>
Re: Termination from Progeny Marketing and Innovation, a subsidiary of Cenda=
nt.<BR>
<BR>
Will try and make this brief to find out if the three to four hundred plus a=
gents and home office staff have been wronged and mislead to by Progeny Mark=
eting and Innovation.<BR>
<BR>
Progeny Marketing and Innovation sold Long Term Care Plans of insurance.&nbs=
p; They marketed this coverage through banks, credit union, associations acr=
oss the country. The agents would receive the leads and call on the pe=
rson who sent it in and arrange an appointment to go over coverage and possi=
bly sell a policy.<BR>
<BR>
Progeny has been doing this for 12 years and doing it well. Some of th=
e agents and management have been with them for 11 and 12 years. They=20=
grew to several hundred agents in the field and support and training staff w=
hich was centered in Nashville Tenn.<BR>
The agents were supported in the field by a regional sales manager who had a=
pproximately 20 to 30 agents under him. He was responsible for hiring=20=
and additional in the field.<BR>
<BR>
March 26th of this year about half the agent staff about was given letters o=
f termination. Given a 60 day notice that their services would no long=
er be needed. Along with the agents the training staff was terminated.=
The training staff in Nashville was terminated before this. Bas=
ic training was done in Nashville up until January. With training staf=
f eliminated all training of new agents was now done in the field locally.<B=
R>
<BR>
Company was supposed to have a conference in early January of this year with=
over a hundred agents. Agents had to sell $40,000 worth of business o=
ver a period of three months during September, October, and November to qual=
ify. Probably over 100 qualified for this incentive and trip to Nashvi=
lle for 3 nights. Conference was postponed in January, then two more t=
imes. The last scheduled conference was for end of April. This t=
o was canceled. Agents invited to April conference were those agents t=
hat were not terminated on March 26th. So agents that were terminated=20=
first time were not given invitations to this conference. Many who qua=
lified for this trip were now being terminated. There was another post=
ponement but that was due to the worry about terrorism in Orlando area. =
; That is what they told us. <BR>
<BR>
Second letter of termination was given out April 20th letting those remainin=
g that Progeny Marketing and innovation was now going to cease all operation=
s and close up eliminating all agents. This would be effective June 20=
, 2003. No conference, company closing. However progeny marketin=
g will still be in business just not selling anymore long term care insuranc=
e through its agents in the field.<BR>
<BR>
<BR>
Now to get down to the main points to see if the agents and the support staf=
f have a case against Progeny and Cendant. <BR>
<BR>
1.Several agents in field and management claim to know that Progeny was plan=
ning on shutting down from June of 2002.<BR>
2.Promises were made to staff in memos, voice mail, meetings that Progeny wa=
s moving ahead. Great plans for the future. You had a future wit=
h Progeny. Conferences planned. New training.<BR>
3.It seems that in the past two years Progeny decided to expand the sales fo=
rce, lowering standards and hiring and training about 20 agents every two we=
eks in Nashville to send out in the field. To double the sales force.<=
BR>
4.One of the main reasons we become agents, the main incentive is that with=20=
every policy sold we build a book of business. Over time we start earn=
ing renewal commission after a year on policies sold. In this way we i=
ncrease our paychecks and build for our furture. Big incentive to stay=
with company.<BR>
5.To get vested of these renewal which would be between 3 percent and 7 perc=
ent of paid yearly premium you had to produce $350,000 of insurance premium=20=
that was in force. This could take from 2 to 4 years depending on how=20=
good an agent you were.<BR>
6.By hiring lets say 200 agents, train them put them in field over past two=20=
years and then close company you basically stop agents from being vested.&nb=
sp; This income remains with Progeny as a huge cash receivable over the life=
of the policy which could be up to 15 years or more.<BR>
7.New agents hired over past two years and then quitting is good too. =20=
Not only do they lose renewals, but first year commission if they are not wi=
th Progeny. An example, policy is sold for $2000 a year. Commiss=
ion to agent about 30 percent, or $600. Agent leaves before policy is issued=
he does not receive $600. Renewals to company over ten years are abou=
t 10percent a year or another $2000 to Progeny over ten years. Large cash re=
ceivable to Progeny. <BR>
8.Many in the sales force and management that this was decided to close up P=
rogeny now before those hundreds of agents in field could be vested.<BR>
9.Turnover of sales force was accepted because it made good business.<BR>
10.Standards lowered this past two years to build sales force just so they w=
ould quit and bring in new agents only to close Progeny before they are vest=
ed.<BR>
11.We are not allowed to contact or approach our clients for 18 months from=20=
termination. Even if our clients are friends or family and clients that we b=
rought in.<BR>
12.Progeny was still hiring and telling us that we were moving forward in Fe=
bruary. Agents were being trained in field by managers that knew that they w=
ere not going to be around in a few weeks, and given termination papers.&nbs=
p; Down here in Fort Lauderdale I satin on a training session in February of=
several new agents who went through the hiring process, made promises too,=20=
and then licensed and put in field and then terminated.<BR>
13.These new agents wasted weeks and months when they could have been workin=
g for another company. Some came to work for Progeny and passed up oth=
er opportunities and lost income to work for Progeny. Company knew it=20=
was closing when it hired these agents. Training staff in Nashville wa=
s already eliminated. Managers knew they were wasting their time in th=
e field.<BR>
14.Progeny website was still up and advertising company and employment for L=
ong Term Preferred Care up until June 20th.<BR>
15.Were the agents and the support staff mislead into staying and writing bu=
siness when the company knew it was going to fold?<BR>
16.Were we mislead that we had a future when it appears they did this in thi=
s manor so as not to vest agents?<BR>
17.Was there a conflict of interest? President f Progeny Mr. Robert Fo=
reman who over the year tells us things are doing well. That we should=
be captive agents. That the company is not being sold. Then lea=
ves Progeny and goes to work for Long Term Preferred Associates which is a l=
arge brokerage. He solicits ex Progeny agents in hopes that we work fo=
r his company as a broker, which is the opposite arrangement of being a capt=
ive agent with Progeny. Solicits us with new and better contract with=20=
vesting from day one. <BR>
18.Why was Progeny not sold? Maybe to keep all renewals.<BR>
19.Policies that we sold we can not deliver if approved after the 20th of Ju=
ne.<BR>
20.We can not follow through with an application and make sure all requireme=
nts are done to get policy approved after June 20th.<BR>
21.Hundreds of us worked and stayed with the company because we thought we h=
ad a future. Believe we were lied to aobut company closing so we stay=20=
and write business that we will never see renewals on, plus wasted almost a=20=
year with Progeny if they knew we were closing, that this was their plan, an=
d we could have worked somewhere else the last year and built a book of busi=
ness their.<BR>
22.Progeny made it look as if the company was going forward, by hiring new a=
gents, mailings to clients, planning conventions that never materialized to=20=
retain agents while all the while planning on its discontinuence.<BR>
<BR>
<BR>
This is the basics of our complaints. There are over a hundred of us t=
hat are on a website for ex Progeny employees and we are trying to figure ou=
t if we have a legitimate complaint. Possibly a class action suite aga=
inst Progeny and Cendant, or should I file separately and negotiate a sepera=
te solution if I have a case. Cendant might not be totally aware of th=
is for they are a huge company and Progeny is just a blip to them.<BR>
<BR>
I am enclosing some of the emails that have been posted in the website and a=
copy of my contract and some letters from Progeny.<BR>
<BR>
Please take a look at this and let me know if we have a grievance so I can r=
elay it back to the other ex employees so we can then make a decision how to=
proceed.<BR>
<BR>
Sincerely<BR>
<BR>
<BR>
<BR>
<BR>
Richard Moore<BR>
<BR>
</FONT></HTML>
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