HomeMy WebLinkAbout94-00725
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I'n:F.J<T SEAMANS CHFlllN .... Mn.l.oIT 0 RIG I N At.
1'1lIl()\ 1HII
Il^Jl~IS~l'Fl" "~~'1'tll'
17li"'t 1:\'/ Nl}j\
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CONSUMERS LIrE INSURANCE I IN TKal COURT or COMMON PLIIlAS
COMPANY, I CUMBERLAND COUNTY, FENNSYLVANIA
FlainUft I
I
V. I NO.
I
DEBRA J. LYLES, I
Detendant I CIVIL ACTION - LAW
OOIl'LAIIIT
AND NOW, comes Flaintift Consumers Life In.urance
Company by its attorneys, ~ckert Seamans Cherin , Mellott, and
file. the following Complaint I
1. Plaintitt is Consumers Lite In.urance Company
(hereinafter "consumers"), a Pennsylvania oorporation, with its
principal place ot business at 1200 camp Hill By-Pas., camp Hill,
Cumberland county, Pennsylvania 17011.
2. Defendant is Debra J. Lyles (hereinafter "Lyles")
who re.ides, upon intormation and belief, at 691 W. Glebe Road,
Alexandria, Virqinia, 22305-1445.
3. Pursuant to a General Agent's Contract dated
November 20, 1990 (hereinatter "contract"), Defendant Lyles wa.
appointed an aqent ot plaintiff Consumers to solioit, bind, writ.
and administer insuranoe on behalf of Flaintitt. A true and
correct copy ot Lyles' Contract is attaohed hereto and made a
part hereof as Exhibit "A",
4, Fur.uant to an Aqent'. Loan Agree.ent and Note,
al.o dated November 20, 1990, (heninatter "Loan Agreamant"),
Con.u.ar. and Lyle. .greed that Lyl.. could receive ca.h loan. to
be repaid out ot future commi..ions which .he would .arn pur.uant
to har Contract with con.umer.. A true and corract copy ot
Lyle.' Loan Aqre~.ent i. attached hereto and .ada a part hereot
.. Exhibit "B".
5. The Loan Agreement provide., intar AliA, that "the
aqreement .hall be entorced in the Common Plea. Court ot
cumberland county, Fenn.ylvania, or at the election ot complny,
whe~e tha Aqent resides. The Agent, wherever he mey be, .ubmit.
himselt to the per.onal jurisdiction ot the oourts ot
Penn.ylvania. It i. ayreed by the Aqent that the In.urancq
commi.sioner of the state in whioh the Agent is lioensed with the
company shall be the agent tor valid service ot proce.. upon all
partia. to thi. agreement." [See Exhibit. "B", '11.)
6. on March 15, 1991, consumer. .xarci.ed it. option
to terminate Lyles' contraot pursuant to paragraph 22 theraot and
her Loan Aqreement pursuant to paragraph 4 thereot. [see Exhibit
"A", . 221 See al.o Exhibit "B", '4.) A true and oorrect oopy
of the termination ~otioe is attached hereto and mad a a part
hereof a. Exhibit IIC".
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7. Betw..n the .tt.ctiv. date ot the Contraot and ot
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the Loan A9r....nt and the t.r.ination dat.. th.r.ot, Con.u..r.
advanc.d aub.tantial .um. to Det.ndant Ly~...
.. Th. Contract and the Loan Agr....nt provide that
upon t.rmination ot the ftgr....nt for what.v.r oau.e, the a.ount.
due Con.u..r. b.com. due and payable by Lyl.. imm.diat.ly. [s..
Ilxhibit "A", '27, Se. also, Exhibit "B", '!S.)
~. The Loan Agr.ement turth.r provid.. tor inter..t
at the rate ot 1 1/2 peroent per month on the unpaid principal
balanc. owing and any and all accru.d inter..t that may trom time
to time b. added to the prinoipal balance, oomm.ncing on the date
of the Loan Agreement.. [ SlIe Exhibit "8", , !S.)
10. The Loan Agreement turth.r provid.. that Lyle.
agr... to pay r.a.onabl. attorn.y'. t..., pluG all oth.r
rea.onabl. .xp.n.e. inl".l'ed by Consum.r. in .xerci.ing any ot
ita r ighte or rem.dies thereunder. (See Exhibit "8", , !S.)
11. As of January 31/ 1994/ the balanc. owing under
Lyle.' Loan Agre.ment, with inter.st, total.d $14,2~!S.99.
Intere.t continu.. to accru. at the rat. of $7.0!S p.r day.
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of '7.05 per day trom January 31, 1994, attorney tee., oo.t. of
suit, and .uch other turther reliet a. thi. Court .ay dee.
appropl'iat..
I,
10.'" 'D.Y_\JI' es..x. . II.LLO'l"
A4tt~\~~
Jame. J. ~utz, !Iquire
Supreme ct. 1.0. 121589
Mark D. Bradshaw, asquire
Supreme ct. I.D. 161975
One South Market Square Building
213 Market Street
Harri.burg, FA 17101
(717) 237-6000
Attorney. tor Plaintitf
Consumers Lite Insurance company
DATED I
6114)
'ebruary (~ 1994
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2, Th~ l;l.!Ja'nl ^~CIII, liuhjCt:1 It) lh~ ul'p'l)vallll l!ih:h l;I~I! allt! ulld~'1 (hL' lull1h ilfHt Jll~lIll1linJUi uf 11\1: l'olllfHIIIY,
_hall have Ilulhurlty to re~()mllllmllll~L'lIli II) Ihe ('I)IIlPilIlY. lilt' lifo'lll..'rlll ^~I,'IlI,I~IL''''~ Ii) pay a~l.'lIhl Jkl'mll fCI!/i dliU~cd
by Ih~ llll'"an,~ I>~parllnenl of Ih~ S'all' or Slales III whkh Ihe (,ellClal ^~"1I1 I. alllholl"J 10 op~lale for all ^genls
appolnte<l by Ih~ (;ell~ral ^g""1.
.\, The (,en~ral ^g~ntln submllllnK appli,alloll' 1'11I UK""'" appOIII"'""", .hall',," Ih" prhll~d or w,llIen for"'. of
agenll' ,mllra". .uppli~d hy Ih~ Co",pany whkh .hall he ,,<<uled In Irlplkale and fo,wa,d~d 10 Ihe Company 1'11I
appruvul. The Company remves the il~hl al any II"'" hI ,all,e1 or ".dll<l Ih" appOlnlln"nl of any .ueh agenl 1'0' any
ra..on whal.o~Vtr,
4. (a) Unlm olherwl.e pruvlded, all premlu",. un polkles (or ,on Ira",) wrlllen by or Ihruugh Iht General AlienI,
afler Ihe nral prtmlul1l Ihereon, .hall be eolle,led by Ihe l.'o"'pilny.
(h) The Gelleral ^lIenl .hall be responolble h' Ihe COl1lpallY lur all hlllllle.. produced by 1Ilflf or II. all~nl.,
elllployee. '" ulher perlon' unJel III 'UllCIVhhlll,
(e) The Gen~ral Allelll allrees 10 Id~mnlfy an<llave Ihe CUl1lpany hall1llm frol1l allY and all "penlfO, eo.II,
,ausel of a,lIon and damalle. resllltlng from and In ,onl~'1uen,~ of IlIlulIlhorl/ed a". or lIan.a,lIon. by It, III alienI.,
el1lployeeo or mher pcroons UIIJ., III IUpervhlon.
S, (a) The General ^lIenl al hi. uwn fXpen.~, .hall e'llllp and lIIalnlaln ade'lual~ oflk~ or ofllcn, for Ihe
Iran..cllon of II. bu.lne.. anJ Ihe Company Ihall nOI be liable for any .udl expen.n ur olher prol1lollonal expenon
excepl Ihat the Company will furnish to the (Jeneral Allent appli,allon forl1l', .pecll1len policy form., 10llether wllh any
olher prlnled malerlallt,ln it.judllmenl, may deem aJvl.able.
(b) The Gtnellll Allent .hall keep a true and curreet record and keel' b"ok, of accounts or; alllran..,lIon.
arl.lnll OUI ,)1' thl' ,on tract and .hall preaeIVe and hold all docul1lents, cmre.pundwce and record. which come hUO its
ponenlon ur under III contlol relallnlllo the form of pullcle. which it I. enlilled tl' lolkll, .ell and/or Illue for the
Company, The COl1lpany al ohen a, 1110 dnlres may make ..amlnallon of all of Ihe bookl and records of the (Jeneral
Agenl as It may deem necmary ilnd the General Agent .hall Jo allthlnl!J necenary to ,ooperate and ...111 the Company
In makJnllluch examlnallon.
(c) In Ihe event thai thll contract .hllll be termlllaled for any reason, the General AlienI on demand, Ihall
relurn to Ihe Company all puUclco and other printed malerlal then unosed and In III hand. and .hallmake available Ihe
book. and recordo of Ihe General Allent In.ofar U Ih,y relale 10 the bu.lnell of Ihe Company, to enable the Company 10
make copies Ihmuf,
6, (a) The General Allent .hull soll,1t application. for the lllOurance and annultle. herein mentioned, and u.. III
bul efforl. to prol110le the bu.ln... and welfare of the COl11pany. The Company shall prescribe the form, plan and
characler of the policy or pollcleo for which appllcallons may be "lllclted, and may, from time to time, chanlle, Or
discontinue any plan, form or character of polley or p"IIe1es, or c,lIltracts now or hereafter In u... 11le Company lhall
prescribe Ihe premium rate anJ polley fee., If any, for .uch pult,y or polkl"" or conlract. and may chanlle, decreue or
Incrn.e Ihe IBid raltl,
(b) The General ^Benl .hall have no power 10 make or aller Ihe policy or contract form. or conditions
conlalned therein, or waive any of the provision. or condition. Ihereof, or modify, alter or waive any of Ihe CompanY'1
raleo,
7, (a) The General Ag,nl shall endeavor 10 pNmote the InlelCOl. of the C'lItlpany a. conlemplaled by Ihl.
conlraet and Ihlllllo conduct IlSelf as nOlto affect ad,enely Ihe buslne.., good "andlng or reputallon of Itlelf or of the
Company,
(b) The General Allent agr'" that II WIll nol nor will It permll any mlsrep,"aentallon, ml.leadlnllltalemenl or
Incomplele eomparl.on. to be made by It.elf, Its agenll or 'l11ployees, orally or by any clreulan, adverll.lng l11411er or
literature, which would be dwlmenl.1 to the Internll of Ihe Company 01 In violation of any of the lawl, rules or
regulOllonl of any Federal, Itate ,,, City Deparlment ,n Bureau havhlg jurlsdktlon Ihereof, nor WIll It violate or pc:rmll
Ih. vl,'lallon of any of t he rules and regulation. of Ihe C,)mpany,
(c) Unlm Ih. prior wrltlen alllhorlzallon of Ihe Company hal been obtained, Generlll Allent .IUlII not u.e,
pc:rnllt or CIlUle the Company'. n.me to be uled In any advertlselllent, circular or IIlerature.
8, Th. General Agenl .hall deliver 10 tht COl11pany luch proof of 10"' or olher evidence of claim.. I. pr..ented
and rued by the Inmred or hll benendary, or any olher clalmanlto Ihe Company, Immediately upon the recelpllhereof.
9. 11le General Agenl, It. allenll .nd employeu, within the territory prelcl, .d, shall be free 10 fXerel.e their own
Ilood Judgment U 10 the pmons (rom wholll they will sollcllln.urance contram and the tll11e and place of .ollcltatlon,
but Ihe Comp.ny may frUI11 lime to tll11e pre.erlbe Ihe rilles and rel!\llallon lupectlng Ihe conduct of the bu.lne..
covered thereby, whkh r\ll.. an,\ reg\llall'lIllhall be ",nfoll\l..1 10 by Ihe General Agent, III agenl. and III empluyees.
Nothing e,mtalneJ In this contra, I Ihall be eonwued III ,reate the relationship of 'llIployer and emph,yee helween Ihe
Company and the General ^~Clll or III agenll, III Its empl"yccl. The General A~entll hereby constllured and .hallln all
rtlPtcU continue h) b~ ~II\ Indl!pClll.ltnt cnlltla..:tur.
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10. l'JlIlISllIlltalllf pJClllhllllli" tJ1!JJI)~115 llf lJlhl.'r hllllb Il,.>(clvl.!d llJ P,lItl Il) CiL'IICrul ^V....nl hH thL' helle I\! "I' till.'
Company, or In Iho CompanY'1 name,lhalll,. V,IIverned hy Ihe follllwlll~ pa'a~laph:
(a) 'fhe Agency Ihall remit and Iran.mll hi Ihe ('IIl11pany directly alld prllmplly ol"lJl recelpl, all .och fon<lll,
groll, wlthool deduction.
II, 'fhe (j.noral Agenl Ihall fornllh and kocp III liH" a Ullnd of Indcrlllltly I/xeellled hy a corpllrale Kl"eIY
IaIllfaclory 10 Ih. Company, In IOl/h form and In luch 'nlllllnl ,"Ihe Comp.ny may "<loll" condllloned h" Ih. falthfol
performanc. of Ihll conlraCI and Ihalllncr.a.. the 'IIIOllnl IIf "Id hllnll a. Ih. Company lIIay rO'I'lIrC In .... th.
p"mlomln,olll' of Ih. General Agenl he.ollle. luch a. III "'11111' a I,,~cr hllnd.
12, (a) Th. (ioneral AMent Iweellhat h. will nOl, directly III Indirectly, or In allY manner whalloever, pay IIr
allow, or Mfor 10 payor allow, any rohale of the <;oneral A~elll 'llJllIllllllon, on any poll.y III "lIllra.1 IlIued III
propolOd 10 b. IlIuod by Iho Company,
(b) Th. General Agent a~re" Ihal In Ihe even I III' Ih. cancellation of any policy IIr '1lIllrael by rUlon III'
mllrtprt..nlatlon or mllundoutandlng, olher le~al call", \If, hy mOlual avreem.nl of ComllBny and Inlured, Ihat all
I/Ommllllolll paid to Ih. Gen.ral Agent on IUl/h 1'011.1.. or ClHIIr.ctl ,Itall h. ..funded 10 Ihe Company and Ihe Gen".1
All.nl Ihall have no rllllll or claim 10 any '<HllInllllon. <In .u.h polll:lel or conlral/lIor damag'l by realollof any luch
relclulonl or caneellallonl,
(c) 'fh' General Ag.nl Ihall r.fond ralably to Ih. Company, 1m hOliness herClofor. or hereafter wrlllen,
commllllonl on callcelled policies al Ihe IBme late al which lodl CllIl\llll..l<lJI. were orllllnally paid, If Ihe General Aget"
hal lucc..d.d 10 and carri.. on an agency formerly .ondo.led by anolh.r, I.he Gen.ral Agent Ihall pay relo",
commllllonl on Ielom prendonll of loch bu.lness a. was wrlllcn by Ihe prod.....or ag.ncy or ag.ntlllllhe IBme mallller
and 10 Ihe IBme extenl as upon Ihe General Agelll" own bUIIMII, unl." Ih. parties h.,.to have Ipe~ll1cally olherwlse
apccd In writing, In ca.. of Impounding or holdln~ In ab.yan,'~ of premium, a. a r~lultl)r any .ourlorder or rule of any
Insurance Deparlmenl or olher lawful aUlh"llly, Ih. .0mmllllrlJ\5 .llJlIl remain In ab.yance In Ih. I4me manner and 10
Ihe I4me extenl allhe prellllunll upon which luch '<lJnml"lon. a,. payabl..
13. No right or Inlerest arlllng by Ihl. Ag,.ernenllhall b. a"llllJ.J by Ih. Gen.ral Av~nllo any olher pellon or
corporation .xcepl by wrlll.n .onsenl of Ihe Company.
14, Forbearanc., fallur~ <lI neglect on Ih. p,n of Ih. Company 10 .nf<)". any III all of Ih. provlllon. of Ihll
conlraellhall not be conltru.d as 4 waiver of ~lloppcl<)f any of Ihc rlglm<lI prlvile~es of the Company, A wnlver of a
PUI act or .I,.unlllance Ihall not .0nltllulC or h~ d..met! 4 cou,,~ of conducl or waiver of 4 lubsequenl act or
clrcumllance,
IS, The Gelleral Agenl allle.. Ihat II will nol knowingly IlIu. <lI J.llver, or permll Ih. luuan.. or delivery of any
poUclea of Irllurance unlell Ihe applicanll. In lound health, fl~' rromlrnpalrmenl anJ InOmllty and lion Inlurable rllk
wlthoul lpeclal condltlonl or rating from an underwrlllng 'Iandpolnl wlthoullh. prior wrlllen cOIISent of Ihe Company
In each Inllance. It Ihall cauIC each of II. agentl and empl'IY'~1 10 ,ub,crlb. 10 anJ enforce Ih. lerms hereof and of all
OIher provisions of Ihll Aw..menl perlalnlng 10 (,eneral Agenll, ag.nt, anJ .mployees,
16, The General Agenl ape" that II will ablJ. by all of Ih. lawl, rulOl and ,.gulatlllll' of any Federal, Slale and
City govelJ\m.nl, deparlmenl or blJreau haVing jUIlsdlctl'lIl <lI .upervlsllln over Inluran.e and the conduel of luch
bUllness In any phasel Ihmof, and failure 1<) .omply with any of lalJ lawl, rule. or regulatlonl Ihall conlUlulC a
Vlolallon and breach of thll conlr.c.. SUlpenslon or .ancellallon of the llcen," of Ihe General Agenl or of one of Ihe
prlnclpall, pan nUl or principal om.." Ihereof by any lu.h ~overnm.nlal aUlhorlUel, Ihall be caule for Immedlat.
lermlnallon of thll Agreement.
17. Thll contract Ihall be void Ihould Ihe Company cea.. 10 do bu.lness Irty')lunlarily In Ihe .."Hory embraced In
the Conlrael. The conlraCllhall allo beeome void and Ineffe.Uve IhoulJ Ihe General Ag.nl b. unable 10 perform under
III lerml and condlUonl by reuon of Ihe cancellation or Ih. denial of a license 1<1 II 41 an agency by an Insurance
dlparlm.nl haVing jurlldlcllon over Ihe lenllory embraced In Ihls conlra.I, Ih. General Agenl or the licensed prlnclpall
(or parlnm) thereof. If Ihe General Agenl Ihall fail to comply or perfllrm any or Ihe lerml or covenanll of thll
A,reemlnl, Ihe Company Ihalllllve 10 Ihe General A~enl,len ,laYI wrlllen nllllc. 10 remedy Ihe alleged ll'lIl.compliance
Ind upon fllllure 10 do 10 within Ihe Ibid len daYl, thll .0nlra.l, atlh. optl<1ll or Ih. Company, Ihall become void anJ
In.ff..Uve.
18. Should a Superlntendenl of Inlurance In the Slatel In which Ihl. Company Ilperaled, decree IlIllrder Ihallhe
Company Ihall co", IlIulng any rorm or forma of Ih. cllnlraell or plllidCl h.,.ln menllllned, Ihen Ihll'llI1l"cllhall be
void BI 1.0 luch form or fOlll\lllf conlraCll or pollclellhallhe Company may b. oblige,! 10 dllConUnue. Should any Cl)Url
of compelenl jurlldlcllon make any declllon which would prov.nt Ih. Company fl<lmllluln~ any form or policy herein
menlloned, then Ihe conuaCllhaJl be void 41 10 thaI particular fllmlor fonllll)( clllltracllor polldea, The provlslonlof
this paraguph Ihall apply only 10 Ihe Slale or Imllory Inv<llv.J,
!<), The General Agfllllhall have no pllwer <n authllrlly olher Ihlln al .p.<lI1.,lln thl. .onlracllJnle!! IpedOeally
panted by th. Company In writing,
20. 'rhe G.ne,,1 Asenl a8,...lhal all appllc41111n, fllr C<lJlllaelI 'lJ 1'"lIcle, ..,lIcller! by 1\ ,hall b. fOlward.d tilth.
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COlli pony PIOlllplly 10Molhel wllh any ulllor onderwrllln~ 1<)lIni UI Inlurlllalloll lelallnM lolhe applkanl fOllh. I)ulloy
wholhl/ OJIIllllllly .obllllu.d wllh lI,e appllcollollUl u'"",wl"" ullIallled,
21. (a) The r<llllpollY oMleo. Iu poy 10 Ihe I;ell.rol A~'"1 dUllllg Iho cUllllnuance of Ihl. aMr.elllenl alld Ih.
G.nolll! AMelll owoe. 10 ocoel>l o. full O""IP'lIbollo" 1'," olllh. ,ervlc., h> II. IOlIdered by lI.elr,III oMonlo alld elllploy...
1<1 Ih. C<llIIpallY a. .el ,'urlh In Ihl. OUIIl'oCI (llldullv. or oil ",II" WId .xpalllc, of Ihe (ielle,al AMenl, II. aMolIII alld
.mploy".), cornrnlllron. based uponlh. p,ollllUIIl.> COIl.Cl.d and paid I.) Iho C<llIIpany 011 fomllof conluc" <lr policlu,
hellln m.nll<lIIod and lold by tbo AM.ncy as .ot f<lnh In Iho Rldol, "Schedulo of Comlllllllolll", htrOIO auached.
(b) Tho COlllpallY .hall have tho IIMht to off.el aMUhll1 allY cOll1p.n.allon du. Ih. Gen.ral Apnt, any debll
now due (II whJch may become due rrollllh. (Jelltral AM.1I1 .1 allY limo, and .ucb obliplloOl Ihall b. a fi"tU.1I apln'l
oompen.ation now 01 ho"afllr due th. G.no,al AM.nl Ulld.,thill AM,eom.llt,
~~, (a) Thl. eonlracl1hall conllnu. In force unl.ulho (Jenorul AMenl vlolales any oflhe lorm~ or breaches any of
Ih. covenan'l horeln provided for, or unlm olherwl.e lermlnatod. Ellher party may lermlnalolhll coni lac I by alvlnMlhlrty
(30) day. nollce In wrltinM 10 Iho olher, Should Ihl. conl/aCI ho lormlnaled by ehher party, renewal com million. If pay"
able, .hall be Movllned by .eparato a~leemenl herelo allachod,
23, If Ihe Gellelal AMOIII .hall al any lime Induco any pollcyhold.r Ilf Ihe COlllpallY to lerllllnat. hi. Inlurance
wllh Ihe Company or to replaco II wllh allY olher III.urel, Iholl the Genelal AM.nl'. IntI/ell In and rlllllll to .ny renewal
commllllonl 01 ..mce fee. Ihall h1lm.dlately cease and tOlllllnalO.
24. (a) The Genelal AMII" will be paid C01l1l1l1..I<III.ln aocoldance wllh Ihe Commllllon Schedule which II m.de a
p< ,of Ihla Alreement, lubJ.ct to all of the plovlllons of thl. AMreomanl, on pr.mluml paid 10 the Company In cuh on
pollclllllluod by Ihe Company upon applications procured by the C..neral AMe~1 andlol Alenll,
(b) The Corn million Schedule, which I. modo a part of this AMleem.m, may be chanMed at any lime, bUI only
wllh 1.lpecllo appllcatloru received by Ihe Comp~ny aftel .uch chanMe,
(c) If a polley, I..ued 'Ill any applications .ubmllled by Iho (ienlllal AMen' Ilndlol his A~enll, where Ihe
p.emlum payment exceed4 I' OilY, five (45) days pasl the expiration of Ih~ due date, the General Alentlhall have no
(chher I .Ier...t o. any kind In luch polley If It I. lelnslated III any lalel date, unlass Ihe General AMent andlol Aaent of
Ihe Genl/a! Aae~1 effecls Ihe relflslatemenls, .
(d) If a policy I. chans.d or oonvelled 10 a new polley ()Il an application Ploculcd by Ihe General Agenl
Uldlor hll Apnll 01, If a new policy Ii l$Sued alld an existing policy on thelamellfelllermlnlled wllhln Ilx(6) monlh.
'.fore or afler Ihe IlIue of the new policy, comOlllllolll payable on the new polley Ihall be delelmlned by OUI Rulli Uld
lUaulatiolll current atlhe tillle of luch chanMe 01 new Islue, .
(e) Com millions 1'01 plan. which alo nOllllled In Ihe Conuul"lofl Schedule will be quoled In accoldance wllh
OUI Rultl and R'l\Illation..
25, In Ihe evenl of Ihe lermlnatlon of Ihll A8reemenl (fol any leason,Includln8 death 01 dlsablllly),lhe General
Acenl 01 hi. legal representative Ihall continue to receive commllllons In accoldance with the Commllllon Schedule 10
the eXlenl Ihat luch cOlli million. Ihall be lecelvable flom p,emluml on policle. Ih,ouKh Ih. 10lh yea I ploVid.d a
minimum of $100.00 lenewal commllllon II due and paya~le within a twelve (12) monlh pellod; however, If luch
lermlnatlon .lICcun wllhln one (I) year from Ihe date of thb Asroemenl, Ihe General AM.nt 01 his lepl,ep,...enlltlve
WII continue to receive only Ihe nnt ye., comml"lolll as plo.ld.d 1'01 In Ihe Conllnllllon Schedule,
26. P.lrln~ Ihe conllnuance of thll AMleemenl you will be paid a contlnued Semc. Fee on Ihe plemlum peld In
...h 10 Ih. Company In accordance with the la.. Q:llhown In the Corn million Sch.dule.
27. In rhe event of the lermlnatlon of this AMre.ment for any reason, Includlnsdeathordll.bllllY, th. Oaner.1AI.nl
or hi. lelal repreuntatlvo Ihall pay 10 th. Company un demand any debll balance carried on Ihe Oeneral Apnl'.lccounl
Ind Iny olher Ind.btedn..s due the Compo~y, If the Oeneral Asenlla n Corporation, Partnenhlp or other entity, all prin-
clp.l. who are "censed with Ihe Company Iholl be Jointly and IOvelally lIabl. to Ihe Company to the ..me exlontla the
Oen"al Aaent.
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CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA
And
CONEUMERS LIFE INSURANCE COMPANY
EXECUTIVE OFFICES: 100Q C""p HlIllly.P..., c.mp Hill, Penfllylvllllo 17011
,
AGENT'S LOAN AGREEMENT AND NOTE
HUS AGREEMENT CREATES A SECURITY INTEREST
AND LIEN ON AGENTS COMMISSIONS
THIS AGREEMENT II .nt.red in.o on .h. -20th___.__ d.y of --.-.----Ho.vumbar---.. ,'8 80
by .nd be.ween CONSUMERS LIFE INSURANCE COMPANY or CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA,
C.mp HIli, P.nnlyl,.n'.I"Comp.ny"l, a"d........m...OEIlRA-.l.__!.YLES__....._._______..___...__________ (Ind IPOUse
IAOln'1
or gUlrentor ,f 10 oXQcutedl.
WHEREAS, Ag.n. hIS'" lorc. with Compa"y an Aoun... Contract whICh uuthorl.a. Agln. to procurl Ipphuallonl lor 1111 Ind I"nulty
In.ur.nc. which prO\IId81S for nOY~Tlent of schoduled commlUlona IUS pronHuma oro pOld to the Comflany on policies illued pursuent 10
lueh .ppllclJlions (Aoent's Controct"l; Bnd
WHEREAS, Ag.nt deslr.. to rlc.'va ca.h 10.'" to bu secur.d by luch COmmlSllon. .chadul.d In the Ag.n". Conlrecl;
NOW, THEREFORE, Company agrea. to lend tu AOln., and AO.nl prom,"". 10 repay 10 Company, Ih. .um. dl.crlbld In .hi. Lo.n
Agr..menl and NOle subjoct to the terms Bnd condlllona contained herOin:
,. Amount 01 Lo.n.. Subl.t. 10 Ih. .plclflc undor...ndlng Ind .grl.monllh., camp.n...lon of .h. Ag.nt by Ih. Comp.ny II
101.ly by commlselan... .p.clfl.d In th. Ao."". Contr.ct, .h. Comp."y h.,.by .or."'o I.nd .h. und.r.lgn.d .g.nt.n .moun.
not to ..ceed S1.000.00 p.r c.... Subl.ct.a .uch m..lmum IImll.llonl, .h, .maun. of .uch lo.n. Ih.1I b. d.termln.d .1
lollows:
,., Th. "nount 01 ..Id lo.n. .h.11 b. a p.rconl.g. 01 ..Id comm'..'on, which p.rc.nt.g..hl company, In It. 101. dllOll'
lion. Ih.1I d.torm'n.. Thllnlllal p.rc.n.age .hall bo -40ili___ b...d on .h. pl.nned p.rlodlc pr.mlum up.o .nd Includ.
ing Ilr.g81 premium.
'.2 Th. p.rc.n.ag. for odvanca. .hown abovo mlY b. chlng.d by the Company by wrln.n na'lc.. Any ch.ng. m.d. will
.pply .0 Ivbsequlnl .dvanco..
'.3 From .ny loan. h..ound.r, th.r. will bl d.ductlon. I.k.n for the comml..lon coll..lrlllol. on .ccoun. on fI'I' Y'"
I'P"I, application. wlthd,awn, and pollcl.. rl.urn.d 10 Complny .. "no.-Iak.n."
'.4 Th',o Lo.n Agrumont and NolO oh.1I not apply.o Inlu,.nc. wrllt.n on .h. III. of Ih. Ag.nl or ony m.mb.r 01 Agont'a
Imm.dl..1 rlmlly.
2, Nature of Loans/Repayment. Anont 80re05 on" 1JI1dorstands thai all monlOIS .dvanced hereundor are neithor ulery nor.n uncon.
dltionll ohhg.tlon owed by tho Compa"y lor .ny p"rpo..., .nd Ih. Agln..h.1I ,.ma,n uncond,"onally bound to replY .uch .uml .lth..
by dtr.c. r.p.ymonl or dlr.c. doduet,on from comm'..,on. In r..p.c..o prlmlum. p.'d.o Comp.ny or bolh. Such lum. Ih.n flrll b.
chllg.d agalno' .nd ,n,lI.lIy rlpoyoh'. Irom Ag.nr. comm,..'on..
3. S.eurIlY. Tho ,ndlbl.dno.. oVldonr..d by Ihl. AOlnr. Lo.n Agr..m.n. and Not.l. ..curld by . '''II Ind .uperlor n.n In f.vo. of
Company upon .ny commissions or other compOt'l8dllon or sums or "ccounls receiv.ble now duo or heredhe, accruing 10 Agttnt from
Complny or from any olh.r .o,"co 10 ..CUr. Agonr. p.rformanc. her.und.r and .h. r.p.ymon. of all.um. due Irom Ag.nt toComp.ny
II . ,.Iul. of loan. mad. h.,.undor 01 pu..u.nt.o ony o.h.r No... lOIn, or oll'.r agr..m.n. b..wun Ag.nl .nd Com piny.
4. T..mln8l10n. Th. Company '0""'"' .ho rlgh. 10 I.rmlnl'" Ihl. lOIn .grumlnl al any 11m. upon wrln.n no'lc. '0 Ag.nt. Th.
lo..go'ng notwllhllandtng, Iho ..cumy h.n. cr.lt.d h.r.unc.r .nd Ag.nr. obllgotlon 10 r.pay loon. hl..und.r Ih.1I lu"'IVI .ny
lueh termination.
&. Rights Upon Termlnauon. Upon terr'nlnBtlon of Agent's Conlract or thiS lOM" Agreement 'nd NOlo, for whet.vlt' taun, the Bum
.quIV"..." to the omount dill' CompAny hereunder and under any 01 her lonn ooreltment blJtwlJon CrH't1pany IJrld Agent llhall, upon luch
t.rmlnltIOr'l, bocome the Pnnclpnl Amount nWHl\l on thll\ Lllan AoreQmerU ond "hAlt bftcnrnn dun ond payahln by Agont Immedi.htly
upon lIuch t.rmIl1stlon, Agnnt herehy 1l0rf!1!5 hi rltJlny to CompAny, I)rqrder, IUIl:h Principal Amount, with IIlhtrnsl cumpuhld on Ihe b..sls
c),. 380 lI.V VI.r fa, Ihe .1;1l,l11 numb' Jav_ mlllu;h mh"ul ,"tlind unlhl.lllnpaid ,,,( HII hlfllnt:.(includIIlU II11V und allllllclu.d
Inl.,..t thlt mlY "0m limllolimll b, .dtJed tn Ihu ,Hlnclpul bullH1r.e ho,unl) hum 11111 dalB uf Ihlslo8n AUlltUmuIlIllntl NOlo unlll,JlhJ, .1
the ,.1. of 1W,It) per ftlonlh on .h. unpaid hllllnclI nWII1U. Princl,ullll"d InlurulIls'lIlll ho ,'BVilhhl IIllho olllco of Hut Cm!HJdnv. eam,J ttlll,
Penn_vlvlnll, QI " luch Olhll pIQc.,llh. nolehuhh., fT1I1Y IIO"UnIl1o, Upon 'hl.l 'iJlhuu of 'hu AUlInllo l'1I1'U,m ,,"V obllQlJllI)I\ l,lnoer,lhil
Aur.,m,nl, thl Comp.nv m.y emplov 0110 or mora lJHOmllyslo IntOlcu 1111 IIUh," lint! rflmultlls. and AUenl hu,uhy OUIIIIIO IJIV IDillon.
.bl. ,1ICJ1naV'1 ,... ph".1I olh.r 18.,.onlhl. IllpurllUJIJ lncurrnd hy thu CU",pllny in IIU'ClflIIlO /Jny 0' illl li!)hlll 0111' IUl11odlOll halllulld.,.
Camp.ny .hell h.vo no obllU.liun to IIDuk r.poyrnltnt or colleelBnv 11)111111 from ony (llho' IH1I8fJ1l!), UIlIIIy huforo cnlluclll1(J Iha 10illl 'rom
Ihe Ag.nt OilCluIIU_ 01 IInv olher p.,,.on 01 enlllV "elm hiJlJlllly'm II IcHII1 Ii' llJ II nol dlhJct ^UIJIII'II h'lblhty Ulldo, HUIi AUllnl' II LOiln Au,.e.
m.nl lod Not..
e. Righi 0' Prap.ymsnl. Agenl mav prepay Iho p'lnclpal amounl UUlflllJnchnu 111 wholo lU In plIrt, No prepllymertl pen.Hy ,h.1I
b. .hl'g.d.
7, a..u,llv .nd ael.OH. To "Cu" Ih. '.p.vm.nt 10 Comp.ny of .11 .mouotl out...nd,,'g ."d Ih. p.rform.n.. 01 .11 olh.,
obllgluonl of Ag.nt 10 Comp.nv, wh.lh., now ..llling 0' h....h.' .n.I"g, Ag.nt acknowl.duu ."d Ig'''' Ih.t Comp.ny m.v ..1.oH
.nv .od .1I..,.llng 0' fulure .mounl. '0.'"'' .ny ..m.d cnmmlulcml 0' olh., .'10" p.y.blo 10 Ag."t by I;omp.ny. To lul1h., "'.U"
.och rep.ym.nl, Ag.nl ho,.by ""0". ."d o,.nlllol;omp."y. ..cwily IOt.,..I,,,.1I comml",o,," o"d .nv oll,er lum. p.y.bl. whl.h
,/0 now 0' m.v f,om IIm.IO 11m. h.".I.., b. ...".d by or owlno 10 Au.nl from Coonponv '.oo,dl... wh.lh., .uch lum.." ..m.d..
Ag.nl commllllon. 0' olh.rwl...
a. Oocum.nllllon. Allh. ,.qu"l 01 Comp.ny. AU.nl will ....u.. .nd deliv", 10 Comp.ny .uch pro,,,,..ory nOI.., 0' olh., .vld.n... 01
Ind.bl.dn..., ..Comp.nym.y "qu..t, 10 ful1h., docum.ntlh. .mounl oulll.ndll1g. In .dellllon, AU.ol.g....IO ...cu.., d.llv." fII.,
0' reco,d .nv .nd .11 nolic.., IIn.nclng .....m.nl., ,.cu,"y .g'..m.'''., ''''onm.nl. 0' ony olh., docum.nll which Comp.ny m.y
d..m n.c....ry 0' d..lrebl.lo .H.el, p'OloCI, 0' p.rf..III. "ghl 01 ....olf, ..cu,'ty In..,..1 .nd p...mounl .nd p,lo, lI.n In Ih. com.
ml,,'eo. h,,,'n.bov. ",'gn.d.
8. A"'gnm.n!. Comp.ny on.v ...ign ," rlghl. und., Ihl. .ddendum, ond Aoont ho,.by con.onl. 10 .uch ""gnm.nl.
10. WI Iv.,. P"..nlm.nl, nolle. of dl.honor, .nd p,,)I..1 .,. horebV wolvnd by Ih. AU.nt .nd InV .u,e1y, gu.,.nlor .nd .n.
do,.., h.,.of.
, ,. Ju".dl.Uon. Thil Aureemenll. m.d. i" Comp H,II. P.nn.ylvonlo, ond .h.1I b. oov.,n.eI by Iho t.w. 01 Ih. Commonw..llh 01
".onlylvenl.. Thl. Aoreomonl .h.1I b. .nforc.d 10 Ih. Common PI... COU,I 01 Cumb.,I.nd County, P.nn.v'v.nl., 0' Illh. .1..llon of
th. Cemp.ny, who" th. Aoonl ".,d... Th. AO."I, wh.,.v., ho m.y b., oubmll. hlm..1f In th. p...onol,u".d'cl'on 01 Ih. coul1. of
P.nnlyIVlnl.. 1111 'O,..d by Ih. Ag.nllhll Ih.ln.u"nc. Comml..,on., ollh. .I.t. ,n wh,ch Ih. Ag.nllo IIc.need wllh th. Comp.ny
.h.1I b. .g.'" fo, v.lld ..",ic. of proc... upon .11 POI1'o. 10 Ihi. Ag,..m.nt.
IN WITNESS WHEREOF. Ih. und.,"gn.d pOI1I.. h.v. ..ocul.d Ihl. Lo.n Ao,..m.nt ond Nolo to b. .1f.cIlV. on Ih. dll' llrel
.bov. IPPII,'ng.
~ CON81.1MEJl8 LIfe I l.IRANCE CO~::t~~ Q
'0 CON81.1MlR8 LIfe I ,UR CE~~f NORTH CAROLINA
BY, AUlh;;-;i;.d Offic., ' - 't - --
~tfdd a;~~
Wllo...
1~~~V.w~~,t2': :j" , . j; ~ J .J
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Ag."t (.
(SEAL)
. (SEAL)
WII...I
Ag.nl'. Spou.o
ATTEST
CORPORATE AOENT
N.m. of Co,po'IUon
8.c,t1.ry
BY,..
AUlho","d Offl..,
(SEAL)
Wltn..1
(SEAL)
GUI,antor
(IndlVlduol o".,.nl..IOO loon fa, CO,pO,.I. Agenl)
Wlloe..
Gua,anlor
O,'rtMdlli11 OIJ,'HHHol'1lIl0 If.,." 'or CorporAlB Agent)
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CONSUMERS LIFE INSURANCE I IN THE COURT OF COMMON FLEAS
COMPANY, I CUMBIRLAND COUNTY, FENNSYLVANIA
Plaintiff I
I
V. I NO. 7215 civil 19i4
I
DEBRA J. LYLES, I
Defendant I CIVIL ACTION - LAW
'ROO. o. alRVJ:CI
The undersigned hereby certitie. that he ha. served a copy
of the Complaint in the above-captioned matter by Certified Mail,
return receipt requested, a copy ot which i. attached.
DATED I
6tm
~ '), 1994
10KIRT .IAKAIf. OHllIIt I KILLOTT
4,@pp
Mark D. Bradshaw, Esquire
Supreme ct. 1.0. 1619715
One South Market Square Buildinq
213 Market Street
HarriSburg, PA 17101
(717) 237-6000
Attorney. for Plaintitt
Consumer. Lite Ineurance complny
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1'0110\ Ill' 0 RIG I N A L ...."..
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C~RTIf'ICA1~ Of' SERVJCJi;
I hereby certify that I am this day servlna a copy of tho forelolnl document upon
the peflon(l) and In the manner Indicated below, which service satisnes tho rcqulrementl of the
Pennlylvanla Rulel of Civil Procedure, by deposltlnl a copy of the same In tho United Statea
Mall, Harrlsbura, Pennlylvanla, with t1rst-class postaa' prepaid, via certlt1ed mall, return
receipt requested. .. follows:
Debra J, Lyles
691 W, Olebe Road
Alexandria, VA 22305-1445
ECKERT SEAMANS CIIERIN oil MELLOn
~c,&.d'~~~v7~
Mark 0, Bradshaw, Esquire
Supreme Ct. 1.0. #61975
One South Market Square Bulldinl
213 Market Street
Harrlsbura, PA 17101
(717) 237-6000
Attorneys for Plaintiff
Consumers Life Insurance Company
DATBDt M~h 22~ 1993