HomeMy WebLinkAbout94-00724
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I IN THE COURT or COMMON FLEAS
I CUMBERLAND COUNTY, FENNSYLVANIA
I
I
: NO. 7 ;1Lt G.i.~~~ I'YN
I
I
I CIVIL ACTION - LAW
CONSUMERS LIrE INSURANCE
COMFANY,
Flaintitt
JOEL T. TEAGUE and
CHERI A. TEAGUE,
Detendants
110'1'101
YOU HAVE BEEN SUED IN COURT. It you wish to de tend again.t
the claim5 .et torth in the following page., you mu.t take action
within twenty (20) day. after this Complaint and Notice are
.erved, by entering a written appearance per.onally or by
attorney and tiling in writing with the Court your deten.e. or
Objections to the claims set torth against you. You are warned
that it you tail to do so the case may proceed without you and a
judgment may be entered against you by the Court without turther
notice tor any money claimed in the complaint or tor any other
claim or reliet requested by the Plaintitt.. You may lo.e money
or property or other rights important to you.
YOU SHOULD TARE THIS FAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEFHONE THE
OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELF.
Court Admini.trator
4th Floor, Cumberland county Courthouse
carlisle, PA 17013
(717) 240-6200
IfOTICIl
LIl IIAN DEMANDADO A U8TED EN LA CORTE. 8i usted quhre
defender.e de e.tas demandas expuestas enla. pagina. siguiente.,
ulted tiene viente (20) diae de pla20 al partir de la techa de la
demanda y 1a notiticacion. Usted debe pre.entar una apariencia
e.crita 0 an per.ona 0 por.abogado y archivar en la corte en
forma e.crita IUI detensas 0 IUS objecione. alas demandas en
contra de .u persona. Sea avisado que .i usted no .e detiende,
11 corte tomara medidal r puede entrar una orden contra u.ted sin
previo avilo 0 notifioac on y por cualquier queja 0 alivio que e.
pedido en la petioion de demanda. Usted pued. p.rd.r din.ro 0
eu. propiedades 0 otroB derechos iMportant.. para uet.d.
LLZVE ISTA DIKANDA A UN ABODAGO INMZDIATAKINTI. SI NO TIINI
AB04AOO 0 SI NO TIZNI EL DINZRO SUFICIENTI DI 'AGAR TAL SBRVICIO,
VAYA IN PIRSONA 0 LLAMZ FOR TILErONO A LA OrICINA CUYA DIRICCION
II ZNCUZ"TRA ZICRITA ABAJO PARA AVIRIGUAR OONDI SI PUIDIl
CONSIGUIR A8ISTZNCIA LEGAL.
Court Admini.trator
4th rlQor, Cumberland County courthou.e
carli.la, FA 17013
(717) 240-6200
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CONSUMERS LIFE INSURANCE I IN THE COURT OF COMMON PLEAS
COMPANY, I CUMBERLAND COUNTY, FBNNSYLVANIA
FlainUtt I
I
V. I NO.
I
I
JOEL T. TEAGUE and I
CHERI A. TEAGUIl, I
Detendanta I CIVIL ACTION - LAW
COII.LAIIIT
AND NOW, comes Plaintiff Consumers Life Insurance
Company by its attorneys, Eckert Seamans Cherin , Mellott, and
tiles the tOllowing complaintl
1. Plaintitt is Consumer. Life Insuranoe company
(hereinatter "con.umers"), a Pennsylvania corporation, with ita
principal place ot business at 1200 camp Hill. By-Pas., camp Hill,
cumberland County, Pennsylvania 17011.
2. Detendants are Joel T. Teaque (hereinatter
"Teaque'l), and Cheri A. Teague, Teague's wite, who reside, upon
intormation and belief, at 7355 West Friendly Avenue, Suite 0,
Greensboro, North carolina, 27410-6256.
3. Pursuant to a General Agent's Contract dated
January 25, 1991 (hereinafter "Contraot"), Teftgue was appointed
an agent of Flaintiff Consumers to solicit, bind, write and
admini.ter insuranoe on behalf ot Plaintiff. A true and corr~ct
copy ot the Contract i. attached hereto and made a part hereot a.
Ixhibit "A".
4. purauant to an Aqent'. Loan Aqreement and Note,
dated January 215, 1991, (hereinafter "Loan Agreement"), Coneumers
and Defendante agreed that Teague could receive oaeh loan. to be
repaid out of tuture commieeion. which he would earn pursuant to
hi. Contract with Coneumere. A true and correct copy ot the Loan
Aqr.ement i. attaohed hereto and made a part hereot a. Ixhibit
"B".
IS. The Loan Agreement provides, inter AliA, that lithe
aqreement shall be sntorced in the Common Pleas Court ot
Cumberland County, Pennsylvania, or at the election ot company,
where the Agent resides. The Aqent, wherever he ~ay be, .ubmits
him.elt to the personal jurisdiction ot the oourt. of
Fennsylvania. It is agreed by the Agent that the Insurance
commiaeioner ot the state in which the Agent its licensed with the
company shall be the agent for valid .ervice of proce.. upon all
partie. to this agreement." (See Exhibit "8", '11.)
6. On August 13, 1992, Coneumers exerci.ed ite option
to terminate Teague's Contract pursuant to paragraph 22 thereot
and hi. Loan Aqreement pur.uant to paragraph 4 thereot. (See
Exhibit "A"" 221 See also Exhibit "B",' 4.J A true and
-2-
correct copy of the ter~ination notice i. attacbed hereto and
~ade a part hereot a. Ixhibit "C".
7. Between the eftective date of the Contract and ot
the Loan A9ree~ent and the ter~ination date. thereot, Conau~era
advanced .ub.tantial auma to Teague.
8. The Contract and the Loan Agreement provide that
upon termination ot the agreement for whatever cau.e, the a~ounts
due Con.umer. become due and payable by Detendants immediately.
[See Exhibit "A", . 27/ See allo, Exhibit "B", . ~.J
9. The Loan Agreement turther provide. tor intere.t
at the rate ot 1 1/2 percent per month on the unpaid prinoipal
balance owing and any and all accrued intereet that may from time
to time be added to the principal balance, commencing on the date
of the Loan Agreement. [See Exhibit "B", . ~.J
10. The Loan Agreement turther provide. that
Detendant. agree to pay reasonable attorney's f.e., plus all
other rea.onable expenses incurred by Con.umer. in exerci.ing any
of its rights or remedies thereunder. (Se. Exhibit "B", . 15. J
-3-
11. Ae ot January 31, 1994 the balance owinq under
Defendant'" Loan Agreement, with interest, totaled $2,997.73.
Intere.t continues to accrue at the rate ot $1.48 per day.
12. Despite repeated written demands, the amount owin9
remain. unsati.tied. A true and correct copy ot .uch demand i.
attached hereto end made a part hereot as Exhibit "0".
13. Oetendants have committed a material breach ot the
terms ot the Loan Agreement by tailing to repay amounts loaned to
Morri. upon hi. termination, as a9reed to in the Loan Agreement
and Aqents' Contraot [See Exhibit "Au, . 27 and Exhibit "B", ,
e), and Flaintitt ha. been damaged thereby.
14. The amount in oontroversy does not exceed $20,000.
WHEREFORE, Plaintiff Consumers Life Insuranoe company
demand. judgment in its tavor and against Detendants Joel T.
Teaque and Cheri A. Teague, jointly and severally, in the amount
ot $2,997.73 a. set forth more tully hereinabove, together with
,
..".,
intere.t at the rat. ot f1.48 p.r day tro. January 31, 1~~4,
attorney'. f.e., cost. of auit, and .uch other turth.r r.li.t a.
thi. Court .ay d... appropriate.
10.laT
ax. . "II/LOT"
I'
Ja... J. ~utl, ..qu r.
Supr... ct. I.D. #a15'~
Hark D. Brad.haw, ..quire
Supre.. ct. I.D. #61~75
On. South M.rk.t Square Building
213 Mark.t street
Harriebur9, PA 17101
(717) 237-6000
Attorn.ys tor Plaintitt
Conaum.ra Life Inaurance co.pany
D^orIDI
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'ebruary ~~~~4
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2. 'l'h. """ral A~enl, .uhJecl10 Ihc appruvallll ~ach ca.~ an.! un.!~r Ih. rul~. and r.~ulnllon. uflh. Company,
Ihall have aUlhurity 10 recomm.nd a~~nl. 1<1lhe Company, 'l'he (,en..al A~elll alYc.. In pay aa.nl" IIc.n.. f... chara.d
by Ihe In.uranc. n.parlmenl of Ih. Slale or Stat.. In which Ih. (,.n..al A~.nll. aUlhOllled 10 uperate (or all A~.nll
appolnl.d by Ihe General Aa.nt.
J, Th. (,.n.ral Asenlln .ubmllllna appllcalhlll' "lI ua.nll' ,'pl'"h"11I.nl', .hall UI. Ih. prlnlt<lor wrlll.n forml of
aa.nll' cunlra.', .upplled by Ih. Company which Ih.1I b. e"culed In Irlpllcal. and forward.d 10 Ih. Cumpany fur
approval, Th. Company r'ldIv," th. Ilahl al any 11m. 10 canc.lor mclnd Ih. appolnlln.nl of any luch aaenl (or any
reason whalloeVII.
4, (a) Unl,.. olherwll. provided, all premlunli un pohcl" (or conlraell) wrlll.n by or Ihrouah Ih. (l.neral Aaern,
after Ih. Oral prcmlul1lther.on, .hall be colleel,d by Ih. Company,
(b) Th. G.neral Aa.nl Ihall b. ruponllbl. 10 th. Company fur all bUlln," produc.d by itself or III aa.nll,
.mploy.u ur olher p.1I01li under IlIlopervlllon,
(c) Th. G.neral Aa.nl aJr'" lu Id.mnlfy and live Ih. Company hallnl..1 (rom any and all .xp.nlll, COlli,
eaUIII of acllun and damaa" reiulllna from and In cOlliequence of unaulholl/.ed acll or Iranlicllon. by it, III as.nll,
.mploy... or olhel p.llonl under II. lup'l'\'lIlon.
S. (a) Th. G.neral As.nl al hll own expen.., Ihall .qulp and mal main ad. qual. ornc. or ornc.., for Ih.
lramacllon of III bUllnm and Ihe Company Ihall nOl b. lIabl. for any luch expen... or olher promollonal .xpenl"
exc'PI Ihal Ih. Company will (urnllh 10 Ih. General Aa.nl appllcallon forml, Ipeclmen pOlicy forml, 10s.lher with any
olher printed mat.rlalll,ln itl Judsm.nl, may dum advllible,
(b) Th. G.neral As.nl Ihall keep a Iru. and COIICCI record and keep buokl of accounll on a1llranaacllonl
.rlllns oul of lhll conlraCl and shall pr.,.rv. and hold all docum.ntl, conalpondence and recordl which com. Inlo 11$
pO...lllon or under III eonllol relallns 10 Ihe form o( pollcl.. which It II enlltl.d 10 lollcll, aell and/or IlIue for lhe
Company. The Company 81 often lI& II 10 deatr.. may make .xamlnallon of all of th. bookl and record I o( Ihe (i.neral
Ac.nt al It may deem n.cmary and Ihe (leneral Asenl Ihall do allthlnp necmary 10 coopmle and 1II11I1h. Company
In maklns luch examlnullon.
(c) In Ihe ev.nl Ihal thl. conllacl shall b. lermlnal.d for any realon, the G.neral As.nl on demalld, Ihall
return 10 Ih. Company all pollcl'l Rnd other printed material Ih.n unuled and In Itl handl and Ihall make available Ihe
bookl and record, of Ihe Goneral Asentlnlofar lIS Ihey relale 10 Ihe buslnell oflhe Company, 10 enable Ihe Company 10
mak. copln Ihmof.
6. (a) The General Asenl .hall loliclt appllcatlonl for the Insurance and annultlel herein m.ntloned, and u.. III
b.11 .fforll 10 promote Ih. bUlln... and welfare of Ihe Company, Th. Company Ihall pr..crlbe the form, plan and
charlel.r of the policy or pollcl.. for which applicationl may be lollelled, and may, from tim. 10 tim., ehanse, Or
dllcontinue any plan, form or chmcter of policy or polielC$, or contraell now or hereafter In u... The Company lhall
prtlellb. Ihe pr.mlum rate and policy fe.., If any, for luch policy or pollcl.., or conlraclland may chanse, d.crc..e or
Incr.... lhe laid ral..,
(b) The General AI.nt shaJI have no power \0 mal<e or aiter th. policy or conlracl fOlml or conditions
conlalned Ihereln, or waive Iny of lhe provlllonl or conditions thereof, or modify, alter or waive any of Ihe CompanY'1
rlltl,
7. (a) Th~ General Asenl Ihall endeavor 10 promote Ihe Intereatl o( Ihe Company II cont.mplated by Ihll
conlracl and Ihall 10 conduct Illelf as not to affecl advenely Ihe bUlln..a, sood llandlns or repulallon of itaelf or of Ihe
Company.
(b) Th. General AI.nt asre.. Ihal It will not nor will it permit any mlnepreaentatlon, nlllleadlnplaltmonl or
IJIcompllt. comparllonl 10 b. made by IlIelf, III ascnll or employ..., orally or by Bny chculm, advertillna mailer or
IIlerlturl. which wou'd be detrlmenlallo Ihe InterulI of lhe Company or In violation of any of Ih. lawI, rulu or
rlJUlltlonl of Iny F.deral, II ale or City Dcparlmenl or BUrlnu havlns Jurlldletlonlhcreof, nor will It vlolale or permit
the Violation or any of Ihe rul.. and reaulationa of Ihe Company,
(c) Unl... Ihe prhlr wrlllen authori1.Ullon of th. Company hal been obtained, General Alenl lhall n,,1 U",
permll or caUl.lh. CompanY'1 name 10 be uaed In any advertiaement, circular or llteralure.
8, Th. G.neral Alent Ihall deliver to Ihe Company auch proof of lOll or other evld.nce of claim al II p"aenled
Ind rued by Ih.lnlured or hll b.neOclary, Or any olher claimant 10 Ihe Company, Iml1ledlalely upon Ihe r.c.lpllhereof.
9. The General Alent, Itl alenll and employ..., within the territory prucrlbed, Ihall be free 10 exerclae Ihelr own
flOd JudlJll.nt II 10 Ihe perlonl from whom Ihey wllllollcltlnlurance eonlraCII and Ihe time llJ'Id place of aollcltatlon,
bul Ihe C",nplny may from time to time prncrlbe Iho rulea and reaulatlon r..pecllns Ihe conduct of Ihe buslne..
cOYtl'd 1\I"reby, which rul.. end reBIIlallon Ihall be conformed 10 by th. G.neral Alent, III asenll and III employeea,
NOlhln~ conlaln.d In Ihla conlract Ihall be conurued 10 creale Ih. relatlonahlp o( enlpldyer and empldyee belween Ih.
Company and Ihe General Asenl or hi asenlS, or III employe... The Gencral Asenlla hereby conltlluted Bnd Ihallln all
r..peclI contlnu. 10 be an Independent contractor.
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10, Tran~JJ1lttl1l of pfltl1lhllllli" dcp"slts or uther funds H!(l!lvl.'d m pllhlll! (,tller..1 ^gclIl hlf III.., hlmclllllf Ihl.!
Co",pany, or In the COlllpanY'lna"'e, Ihall he ~ov<rJwd hy the followln~ para~raph:
(a) The A~ency Ihall re",1l and Iran,mlllo Ihe ('ompany dlreclly and plUmplly opon recelpl, all ,ud, flllld"
1\1011. wllhoUI dedllction,
II. The (ieneral Agenl Ihall fllml,h alld keel' III force a Uond or Indemnity execllled by a <"rpo,ale '"rely
latilfaclo,y I" Ihe C<JJnpany. Inluch for", and In ,udl alllollnl "" Ihe Company mlY re4"lre, c'>IIdllloned I'm Ihe fallhful
perfo"nance of Ihl. conlraCI and Ihall Increa,e Iha alll""'lI "I' ,aid hond a' Ihe Co",pany ",ay re'lolre In ca,e Ihe
premlu",lnco",a of Ihe General Age'lI bec'"l1e, ,uch a, t" rO'lulre a la'~or bond,
12. (a) The Gelleral Agenl awoel Ihal ha will n"t. dlreclly Or Indlreclly, or In any manner whal.oever, pay "r
allow, or offer 10 payor allow, any ,ebale of Ihe Cl.neral A~erll comml,slon. on any p"lky "r c'"l1ra<l I""ed "r
propowd 10 be Ia,ued by Ihe Co",pany,
(b) The Generll Agenl a~JCea Ihal In Ihe .venl "I' Ihe canc.llation of any polky m cmllraCI by reaU>II of
mllfepreunlation or rnllundmtandlng, olh.r I.gal cau,e, "r, by ",ulual agreemenl of Company and In,urad, Ihal all
co",mll.lonl paid 10 the General A~enl ,>II ludl pollcl.s or conlracl' ,hall be r.fonded 10 Ihe Co",pany and IheCleneral
AlIenllhall have no right or dalm hI uny conllnl"lon, on ,u<l1 pollde. or C'"II,acl. 'll damuge. by rea,,,n of any ,uch
reacl"lunl or cancellation,.
(c) The (,enenl A~.nt ,hall ,efund ,alably III Ihe Company, un bu.ln... herelofm. "r he,eaft.r wrlllen,
commllllon, on cancelled pollcle. al Ih. lam. rale al which such connlll"lon, were mlglnally puld, If Ihe General Agent
hat luccceded 10 and carrl.s on an agency formerly conducted by another, Ihe (,ellerul Agenl Ihall pay relurn
commJ,.lon. on relurn premIum, of luch bu,lne" a, wa, wrlllen by Ihe pr.dece"o, agency 0' agenl. In Ihe ..me munner
Ind to the .ame eXlenl as upon Ihe Clen.ral Agenl'l own buslne". unlo.. Ihe parlles hereto ha.. spe<lncally olherwl,.
.areed In wrlllng, In case ollmpoundlng or holding In abeyance of premiums a' a result of any courl order or rule of any
100ur.nce D.pnrtmenl Or olh.r lawful aUlhorllY, Ihe conllnl:lSlons shall remain In abeyan<e In Ihe same manner Ind to
Ihe ..me extent as Ihe pr.mlum, upon whkh .udl commlaslon, are payable,
13, No rlghl or Inlerell arl,lng hy Ihl, A~rwnenl ,hall be ...IVled by Ihe Cleneral Aganl 10 any olhar pe"on or
corporation excepl by wrlllen con'enlM Iha Company,
14, Forbearance, failure or neglect on Ihe pari of Ihe Company 10 enforce any nr allnf Ih. provision, of Ihl,
contract lhalllllll be construed.. a waiver of elloppelof any of Ihe rlglll' or povile~e. of Ihe Company, A waiver of a
palt let or clrcunUlance ,hall nol con,lIlute or be deem.d I cOII"e of condllcl or walvar of a ,ubsequent acl or
clrcumltlnce.
I~, The General A!!enl aW'ea. Ihalll wlllnol knowingly I"ue or deliver, or permlllhe 1"lIance or delivery of any
policies of Insurance unle" Ihe applicant Is In ,ound health, free from hnpalrrnenl and Inllrrnlty and I' an Insurable risk
withoul lpeclal condition, or rallng from an undarwrllln!! 'Iandpolnl witbout Ihe prior wrlllan cOl15enl of Iha Company
In each In""nee. It ,hall cause each of it, agenls and employees to suhscrlbe III and enforca Iha lerm. hereof and of all
olher proVisions of this Al\leem.nl perlllnlng 10 Generll Aganu, ag.nl' and employees,
16. The General Agenl agree' thai it will Iblde by all of Ihe Ilws, rule, and regula I""" of any Federll, Sllle and
City governmenl, department or bureau having jurl.dlctlon Or supervision over Insurance and the condllcl of ,uch
bUllne" In any ph..e, thereof, and rallure to comply wllh any of sald laws, rules or regulall'Jnl ,hall con,IIIUle a
Violation and breach of lhls conlract. Suspen'lon or cancellation or Iha hcenlC of Iha General Aganl or of <me of Iha
principal., parlners or principal omce" Ihereof by Iny such governmenlal aUlhoolle., .hall be caule for IInmedlale
IlImlnlllon of Ihl, Agreemenl,
17, Thl' conlract ,hall be void ,hould Ihe Company ce..e 10 do hu,lna" Involunlarily In Ihe lerritory embraced In
the Conlllcl. The conlracl ,hall al,o bacom. void IlIId Ineffective should Ihe General Agenl h. unable 10 performllnder
IU lerms and condlllonl by ,ea,on of Ihe cancellallon or Ihe denial of a license 10 II a. an a!!ancy by an Imurance
deplrtmenl haVing jurl,dlcllon ovar Ihe lerrllory embraced In Ihls !'ontrad, Ihe General Agenl or Ihellcensed principals
(or plrtners) thereof. If the General Agenl shall rail to comply or perform any of Ihe larms lIT covenanl, Ill' thl.
Alrument, Ihe Company shall gtve 10 the Genaral Agent, ten day' writlen notlca 10 ramady Ihe allaged non.compllance
Ind upon failure 10 do 10 within Ihe .ald len day', Ihla conlracl, atlhe option Ill' Ihe Company, ,hall becoma void and
IneffectiVe.
18. Should a Superlnlendenl of In,uranca In Ihe Stites In which Ihl, Company operaled, decree or ordar Ihlllho
Com piny shall ce..e Is,ulng any form m fornu of the conlracts or pollcle, herein menlloned. Ih.nthls conlracl ,hall be
void IS to such form or fomu l)f conlracls or p'll1clellbat the Complny may be obliged 10 dlwnlllnlle, Shollld any COUrl
of compelenl jurisdiction make IlIIY declllon which would prevenl Iha Company fromlSllllng any rmm or policy herein
mlntloned, Ihen Ihe conl...ct .hall be void al 10 Ihat particular form or forms of cllnlraCI' or pollcle', The provl,lon. of
thl. plfll!J'aph shall apply only to Ihe Slate or lerrllory Involved,
19. The General Agenl .hall have no pow.r or authority ,lIher than.. 'pedl1ed In Ihl, cunlruct unle" ,,,e<ll1cally
l!J'anled by Ihe Company In wrlllng.
20. The General Agenl agree' Ihal all application, for conlracl. 'lr pohdal ",Ilello<l by it .hall be f'lrwa,ded Inlhe
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(:ullIp~ny 1"UlIIllIly lug~lh~r wllh any ulh~r un~~rwrlllllg h,,,", ," 1II,,,"I.II'1lI r~I.lll1g h' Ih~ .ppllc.'1I for Ih~ pullcy
'Nh~lhll'"l1/nplly .mhllllll~II wllh Ih~ 'I'pllcallullur ullwrwlllC lIhl,llIell.
21. (u) The CUlllpany al!le~. 10 pay Iu Ihe (i"n"al Ag~nl IInring Ihe cllnllnn~nc~ lIf Ihl. ag,e.lllenl anll Ih~
G.nera! A~~nl aw~~' Iu aC'"llI .. full cUIIII",n'OIlun hll 1111111< "'''I'''. III he r~ntl~rcll hy 1I.~lf. II. a~~rll' U1l1lellll,luyuI
Iu Ihe ('ump.ny a. .~I fUllh In Ihl. cunllucl (InchlllY~ uf .11 C'"" wIll ~xp~n"" uf Ihe G~n","1 AMenl, III allCntl and
.mpluyeu). cUllllllllllun. ba.ell uponlhe premlulIIl coll~cl~1I .n~ IlUllI hllh~ Comp.ny on forlll. of conlrucll or pollclU,
he,,'n m.nllunell .nll .ulll hy Ihe Aien~y II lei funh In Ihe Killer, "~chellule of Conllnllllon.", herelo 'lIached,
(h) TIle Company .h.1I haye Ih~ rl&hl 10 offICI aauln.1 any Cllmpen.allon due Ihe General AlICnl, Iny lI.bll
nl)'" due "r whIch may ""collie due frllllllh. General AMent 01 any lillie, and .uch ,)blllllllon. IIUlII b. a Rul lI.n alalnll
comp'nl.lhlO nuw III here.....r lIue Ihe General Aienl unll., Ihl, Agreernent.
u. (I) Thl. contracl "hall continue In forc~ unle.. Ihe Gen~1B1 Alieni ylol.tulny oflhe lerm. Or brllchlllny of
Ih. coy.nln" herein proylded I'm, orunlell olherwl.e lermlnal~d. Eltherparty may t.rmlnlle Ihl. conlrlcl by Ilvlnlllhlrty
(30) day. nOlice In wrlllnll h) Ihe olher, Should Ihl, conlract be lerrnlnatell by .llher Plrty, renewal commlnlonllf pay-
able. Ihall be Iloyernell by .eparale allroemenl horelu all ached.
2.\, If Ihe General Aienl ,h.1I 01 any lime Induc~ ony policyholder uf Ihe CUlllpony h) lermlnllle hJI lnlurlnce
wllh lhe Compony lI/ 10 replace II wllh any olher In.urer ,Ihenlh~ Gell~rul Agent'l InlO"llln anll rl&hlllo Iny renewal
comml,,'onl or lervice feellholllnnn.dl~lely ceu. ond lermlnale,
24. (a) The General Alieni will be paid comml.llhlOlln accordlnce wllh Ihe Comml.,lon Schedule Which II mad. I
III . of 1111. Ai/cemenl, lubjecl to all of Ih. proyblon. of Ihl.l Aire~menl, on pr.mlum. pald 10 Ih. ComplllY In cuh on
pollcl.. luued by Ihe Company UpOIl ~ppllc~lIonl procured by Ihe General Agenl and/or A,enl..
(b) The Connnllllon Schedule, which I. made a pari of thl.l ^ileement, Ol~y be ch~nged al any time, bUI only
wUh r'I,,"II') appllcatlonl received by Ihe Company after .uch chanse,
(c) If a polley, bluell un ~ny appllcallon. lubmlllell by Ihe General Agenl and/or hll Aien.., where Ihe
p..mlum payment exceeds forty.Rye (45) day. 1'''1 Ihe explIYllon of Ihe due d~le, the General Alieni ,hall have no
frhh~r I .It/esl 0, any kind In .uch polley If 1111 relnalalCd al any laler dale, unlelllhe G.neral Agenl and/or Alenl of
the Generlll Alieni effeclllhe reln.lalemenl..
(d) If a polley II changed or conyerled 10 a new policy on an a"pllcoHon procured by Ihe General Agenl
Ind/or hll Alltnll or. If a new polley I. Inued and on exl.llni poll't on Ihe lame life I. lermlna"d wUhJn Ilx (6) monlhl
. .fore Or afler Ihe IlIue of Ihe new polley, cumml..lon. payable on the new polley Ihall he delermlned by OUr Ruin and
R.eaulatlonl currenl Illhe lime otauch chonge Or new I..ue.
(e) Com million. for plan. which are nOllllled In Ihe Comml..lon S"hedule will be quoled In Iccordance wllh
our Rul" Ind Reaullllonl.
25. In Ihe evenl of lhe lermlnallon of !hI. Aireemenl (for Iny re..on, Indudlni de~lh or dl..bUlly), Ih. Oeneral
Ac.nl or hlllepl repreltntallye Ihall conllnue 10 receive commlul"n. In aeeordlnce wllh Ihe Commllllon Schedul. 10
Ih. eXlenl Ihat luch comml..lonl Ihall be recelyable from premlunll on pollclel Ihroullh th. 10lh yelr provided a
minimum of $100,00 renewal commlulon II due and PlY able wUhln a Iwelve (12) monlh porlod; hOWlm, If luch
I.rmlnatlon 'OCCUII wUhln one (I) year from !he dale of lhl. ASleemenl, Ihe General AI.nl Or hille..1 rlpr"nntallve
lhall conllnue 10 recolYe only !he 0111 year commlulolll al proYlded for In Ihe Comml"lon Sch.dul..
26. POl/lne Ihe conllnuance of Ihll Alreemenl you will be paid a continued Servlc. Fee on Ih. premium pllld In
cuh 10 the Company In Iccordunce wllh Ihe rale lIS Ihowllln the Contmlulon Schedule.
27, In rh. tvent oflh'lermlnallon oflhll Agreemenl for any realon, Including dealh or dllablllly, Ih. O.neral Alanl
or hlllelal repreatnlallve Ihall pay lothe Company on dem.nd any debll balanc. clrrled on Ihe Oent/al Allnl'l accounl
and any olher Indebledne.. dU'lhe Company. Iflhe G.neral Agent II a Corporlllon, Partnellhlp or olher entllY, all prln.
clpall who I" .. c.nsed wllh Ihe Company Ihall b. Jointly and se..rally lIabl. 10 the Company 10 the ume axlanl al the
O.neral Alent.
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CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA
And
CONSUMERS LIFE INSURANCE COMPANY
EXECUTIVE OFFICES: , 110 Fornwood Avonuo, Co"'p HIli, PA 17011
AGENT'S LOAN AGREEMENT AND NOTE
nlls AGflHMENT CflEATES A SECUfllTY INTEREST
AND LIEN ON AGENT'S COMMISSIONS
THIS AGREEMENT I. on'o,od ""0 on Ihu~. 25t.h olav 01 ~~___._~n.__.____. 11l.!!l-L
bV ond bolwoen CONSUMERS LIFE INSURANC~'OMPANY ~SUMEAS LIFE INSURANCE COMPANY OF NORTH CAROLINA,
Cemp Hill, Pennsylvania ("Company"), and "'" I I. , / ~ ...___ __d____. n'~ 0_ land epoulIu
. - - (.9"'1
or guarantor If so O)l()I:Ulod).
WHEREAS. AnorH haR III fore I.! With ClJlllp,lllY ,Ill Anon!'" Cllnlrllct which ,111111011/05 AUElnllo pmcurn appllcululIls for hfo and Bnnu~ly
Insuranco which provides for fliJYI1lt'Jrll of f)I;hntlLJIl'rl clllllflllliBllIllS 1)6 prcnllllJUS Mil paid 10 tho Company on pnllCIlJ5 Iluuod purluonllo
luch applications (Aoent's COlllrnct"); and
WHE~EAS. Agont desHes to rocelVU COHill IOlln:\ 10 110 50curud hy alJeh COl1lJl1l8SIIHl5 5chudlJled III ttll9 Agont'/S Contrdct;
NOW, THERE[ORE. Company U{]rODIi Ie) Ifllld to A~IOIlI, Ilnd Auonl prllllHRflR to repllY 10 Company. tho sums closcnbfJd III thllloan
Agreement and Nolo 51lhloct 10 the lorrllri iHld Cl)llc!lIIOIl'3 c:orHalfloc! herein:
1. Amounf of loans, Subjocllo tho SPOCltlC lllldorstdnding and d(Jreement Ihot compensation of the Auenl by Ihe Company is
101.ly by commissions dB spociflod llllha Agont's COl1lrocl, Iho Company horoby 1t(J,eesto lend the ulldfHslgned 8gBnt Itn amount
nOI 10 e)lce.d 111,000,00 per coso, Suhlt)ct 10 Bueh ITlnlmtllllll hrtllllJllOflS, tho amounl 0' such loons shllll be determined u
lollows:
1.1 The amounl of sold loons shall bo II PlHCOlll11UO of said eOIllIl1I8610fl, which porcontogo lhe compo ny, in its lole dlscre-
lion, ahall determine, Tho inltiol porcerllo\lo BhAII be ____ _25J.2.5.__ _. bosed orllhe J)ll1lllled periodiC premium up to and includ.
inq larYdl premIum.
1,2 The percentage for advances shown !lhol/o muy ho chonued by tho Compony by Wrltlen flollco. Any change mode will
epply 10 lub.equonl odvoncol.
1.3 From ony loons hlJreunder, thero Will be deductions loken for tho commission collalerullolt on Decoun' on firll yur
lepuI, 8pplic~Uon6 withdrawn, And PO!lClo6 returnod to Compl1ny 05 "not-taken."
1,4 This loon Agreement and Note 6111111 not npply 10 InSIHu"ce wrlUen tHlthe life of the Agent or any member of Agent's
Immediate family.
2. Nature 0' Loans/Repayment. AUflrllu{JHHJ5 i1nd IJlHhHRlllllds thill illl fllrHllft6 lUll/Meed horfllmrler arc nelthar solary nor an uncon.
dltional obligation owed by tho COrl\pnny for /IllY ~)llrpC)8flfJ. IInd thl} Anollf Rhnll rllmrUIl unconclltlonally bound 10 repay such sume elth,r
by direct repayment or (hroet dodlJl;lllHl frorn ClHllJllIRSHH15 If! rOSp1lt;llu profl'UIJI1I!l !llud 10 Company or bOlh. Such suma shall firal be
chlHged ag81nsl and Inlllnlly repayable from AUIlI\t'5 COflll111SS10ns
3. Security, The tndohtedness OV!thHlC,lld by IhtR Anent's LOAn Aorol)f1lern Ilnd Note Is !lICUlod by 0 'Irsl and sIJp,,,ior lien in fllvorof
Company upon any commiSSions or othor c,C)mpflfl~nlllln or SIJIllB or accuunts rocoll/oblo now <<jue or heroafter llccrulng 10 Agent from
Company or from any other sourco tn :.er:uro AgmH's p"rformnnce hereunder and Ihe repayment 01 allllums due from Agen' to Comp.ny
.Il . r"ult of lonns mado hflreundor or pllnUIlJlll Ir) IlllY oltlllr NOlf), IrlfUl, or olhor ogrOfll11enl between Agent and Company.
4, Terminallon, The CompallY rr'Sf!tI/CS tho nnh! 10 tcrnllnate thiS loan oureamont 8t OrlY time up{)n written nolice 10 Agent. The
forego~ng notwllhstanchng, Ihl? socurlty liens ernlHud horflun(!fH and Agent's ohllflOIlOn 10 ropay loans hereunder shall survive .ny
luch terminallon,
a. Rights Upon TormllllltuHl, UPOIl t(l~mlfllltlon of Allunr" Cf)ntrl)l:t or thlK lrMtl ^orl1f1mflnt and NOli!, for whatul/ur CBUIIO, Ihe slim
eqUivalent to Ihfll1mOurll chll) COl11p.UlY hornundm lHullJllllrn ,my othlH 10,11\ i1l1rfllHl1onl helwflon Compony and Ane," shall, upon such
terminatIOn, hncofnn thn Prlnclpill Alllfllllll OWIII!l 011 thiS lOI'" AUrfJCnlOfltllnd shnll hnc-ome clun IIncl paYl1ble hy Auontlmmodlalnly
upon such ternllniHtlln. AU'Hlt tlllr,'by il!lrlll1K to rUIMY 10 COUlPllIlY, CJr llrdIJr. ~IJdl Prtnr.tpul Amollnl, With ulterost computod fln tht! basis
Q" 360 day yoo, IQ, Iho oCluol numlt ", dlly.ln II11eh illlll'II.1 "",I,,d ,,"11," '''('lIIld J"CI"al halll""" (1"c111lilllll ""y ,,"li all oo'""od
In'."..' thai may "0", limit to lime hI) .ulrlad II) HH' pnJ11l11l1l1 hlll'HH;O hurlJIl11 fmm tho dlllu 11' Ihh.lollll AurulOfIllIlIl alld NUlo 1111111 puld, Itl
the ,I" of 1 v,?6 J)Q' I'nunlh on the unplIid hlllllm;1/ owillll. Prtlld,H1I ilnil inloroKll'ihll1l hll pllVlIhlu IlIlhll u'f1r;u 01 11111 CWJlIJUUY. CdlllP ~tlll,
Plnn.ylv8nl., or Ill' Itlleh Qlho, place ill Iho nfJlohnldnr 11UII,. d1llflUlllllu. l)pon Ihl) 'Allum of thu AUIJJlIIO lllufClrr1l IIny uhliQulion ~lI1do' Ihle
"g,..ment, Ih. C,mlJ.Hmy m,y .mplny ono l}f IllU"J atlUl/luyslo Dlllnn;fJ 116 rluhl5 IJnd rtJmUdlUII, BlldAUUlI1 horuhy OurODJ In pay muon.
.bl. ,lIomlty', f..1 J)hll.1l olhur ruaenrH)hh, u.,'Onrtllij I/H1tmod hy Ihu CI)ltlllHny in IJUHdfllllO llny I)' 1111 riuhflS and IIJl110dlOII hOfQUndur.
Company ,hall havu no oblluatlon to louk IlJJlflymlH11 or ,:I)U"c:1 UIlY li)jJrlf. from .1IIY olhnr pUnilln or Illlllly h"furn COIlOClIlIU Iho 10DI1 from
th.Aglnl. Ollcharu, 0' any other purlon or un Illy 'tom llutllhty 1m 11 hllll1 atiltll /ll)lllffocl AUIUlI'Ii llahlllty lH1dor thltS AUont'slolfn AU,.u..
m.nl .nd Noll.
e. Righi 01 P,opoym.nl. Agonl moy ",.pay Ih. p""clpol a",,,',," llIll.,.""II"O In whola '" In pa,l. No p'.poy",.nl 'l.n.IIY Iholl
b. ch.,g.d.
7. 80o",'ly .nd 8.1.011, To "Cij,O Ih. ..."oy"'o," 10 Company 0' oil a"'ollnlo Q"I.londlno .nd Ih. potlQ"nunco 0' oil olh.,
ob/lglllon. QI Ag.nlIQ CQmpony, wholh., now ..1.llnu Q, 110'0.".' .,1.1"0, Aoonl ocknQwlodg.. ond 00'.0. Ihol Cmnpa"y may .01.Qft
.ny ond .1I."lllInl/ 0' ,,,II,,. .mo"nll ogaln.1 any .a",od comml..ion. 'II olh., .lIm. payahla 10 Auo"l by Co"'pony. To '",Ih., o.c,,'o
lijch repoymllll, Agonl ho,.by ..olgnl ond UrI"l. IQ C"""lo"y 0 ..c",lly Inl.,..lln all c"mmlo.'IlI1. ond any Qlh., ."m. poyobl. which
Ir' now or mlY from timo 10 time herealler be ellmed hy or owing In Agont frum Company regardless wtlolher ULJch lIumll 8r8 uBrnfld all
Ag.nl comml..lo"l Q, olhorwl...
e. OQo"m.nllllon, Allh. ,.q"881 0' Compa"y, AU.nl wlll."clllU a"d doliv., 10 Cmnpany .lIeh pmml.."'y "QI.., Qf olho, ovldonc.. QI
Ind.bl.dnnl, ..CQmpony moy ,0q,,001, 10 ,,,,tho, d"cllmonllh. ImO,,"II)l".landlng.lnoddlllon, Ag.nlog,oo.IQ 0"0,,1., d.llvlI. 11I0,
0' ,.cQ,d .ny .nd.1I nQtle.., IInonelng ..11.monlo, ..c",lly ag,oomonl., ...Ignm.nllo, any olho, doc"m.nll which Compony mlY
d..m n.c....ry Q, d,,',obl.lo oll,cl, prol.cl, 0' po,'oelll. ,IUhl Q' ..1'011, .ocurlly InIO'O.1 ond pO'lmQ"nland p,'o, lion In Iho OQm.
ml,,'Qnl h.,,'n.bov. o..lgnod.
e. A..ignm.nt. Comp.ny msy ouign illl rlghllS l,Iudor thia oddondllln, Bnd Agont horoby COllllonts 10 lIuch oulgn""nt.
'0. W.iver, Pr..entment. nolleo ()f dillhonor, rind ptnlOll1 dO) homhy wBlved hy Iho Ago"l and any Rurety, guaranlor Ind en.
do,.., h...QI.
", J",lldlcllon. Thlo Au,oolllonll. modo In C"rnp Hill, Ponn.ylvllnlil, IInd .hall h. UQvornod by Iho law. Q' Iho CommQnw..llh 0'
P.nnlylv.nll. This Agreemont ISholl bo flnlmcod 111 Iho C.ommon Phlllli COlltl ()I Cumhurlond County. Ponnsylvonia. 0' ot the election of
thl Comp.ny, where Ihe Agenl resides. Th" Agent. who,ever he Illay he. ItJhn111s himlSulf h) the pe,sonollutisdlction 01 the courtt 01
P.nnlylvonlo. 1111 og,o.d by Ihe Agllnllhlllho In."",nea Cornn"..lo"o, "I Ih. "010 In which Iho Agonl I. IIco".od wllh Iho Company
Ih.1I b. .gonl 'Q, valid ..",Ic. 0' p'''co.. Ilpon 1111 portio. 10 Ihlo Auroomolll.
IN WITNESS WHEREOF, Ih. "ndo,.lgn.d pIrtle. h.vo O"oc,"od Ihl. LOll" Ag,.omonl a"d "QI. 10 bo .".cllv. 0" Ih. dllo 11'.1
.bQv. .pp..,lng.
~CON8UMERS LIFE IN~RANCE CO~~ OF
CONeU::R:_ LI.FE.IN. ~~.'~C.~:;~._~~:O_L~:~
Alllho,I,.d ffleo, G
pp . . -)
w>"..;itt~~. ............
WII;;j!iJi--L~~ ------ .-------
I OIVIOUAL AGENT:
_,~~=-c__ __".___n__ (SEAL)
AO~~~O,,~q-. ]e~LJe, -. - .... -- ~--- (SEAL)
ATTEST
CORPORATE AGENT
Nomo 0' Corp"'IIIQn
S.e....ry
BY: ._.
Alllhorl..d Offlco,
n___._______n.__ (SEAL)
-.-..---....--........
_._.._______.._,_ (SEAL)
WI,n"l
OUlmU1hH
llndlvldlln' o""..nlool"O loan 10' Co,porlll Agonl)
Wllno;;-.---------------.
'/3/0'
GlJl1rIHlInr
(l'hllvlrlll.11 UlIilflltltfllJlrllJ IOl1fl fur Corporl11o AgmH)
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^ Mrmbfr or th. Con~umrr' FlnJn,lal (iruup
TOI
Joel T. Tea9ue
205 E. Avondale Drive
Greensboro, NC 27403
FROM: Timothy E. Flanni9an
Vice President - Sales
;,1
DATE I August 13, 1992
SUBJECT: Notioe of Cancella~ion
In accordance with the insurance regulation of your state, we
hereby notify you we are terminating your lioense to eolicit
insuranoe on behalf of Consumers Life Insurance company.
Your contract with Consumers Life Insurance company will expire
thirty (30) days trom the date of this notice, as per the terms and
conditions set forth therein.
It you should have any questions, please contact us at (800) 933-
3018, extension 6315.
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