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HomeMy WebLinkAbout94-01825 v V) 6 \ \ ~ ~ I I I l{)! ("""g 00 ~ en - ~:: ;!:-r. ., U..I ~".~ ~ U;z;(,.-'~ I;'CO:~ __XC! ., <-:;. \>-..J .~ , .:..-: ~.. e, . . '........... ~ '.I ~ "11 \~ ~ -..9 \.1'") ~ ::s: .... <D N ,....... DC .... '""" ~ .., t...~ '" ~ ~ ~ ~ ~ -4. ~ ~~!,,{~~ ; "--J -': j :.~ ,~~ -.:: ')',t. (~~ ~ A , .. ~ an . .. C 11')<1\11< MELL RIG I N A L El~rKl sr"M,~~~.,~ ';".",. 0 . II ~~~I',!ll'W'. f,\ , I~,"""'\' I.Y'. . . CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 11- /g:J..)' ~d~ plaintiff v. KENNETH A. CHASE and DORIS M. CHASE, Defendants CIVIL ACTION - LAW NOTICI YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the complaint or for any other claim or relief requested by the Plaintiffs. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator 4th Floor, cumberland county Courthouse Carlisle, PA 17013 (717) 240-6200 NOT:J:CIA LE RAN DEMANDADO A USTED EN LA CORTE. si usted quiere defenderse de estas demand as expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y l~ notificacion. Usted debe presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notificacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. ...~~ . LLEVE ESTA DBMANDA A UN ABODAGO 1NMED1ATAMENTE. S1 NO T1ENE ABOGADO 0 S1 NO T1ENE EL D1NERO SUF1C1ENTE DE PAGAR TAL SERV1C10, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OF1C1NA CUYA D1RECC10N SE ENCUENTRA ESCR1TA ABAJO PARA AVER1GUAR DONDE SE PUEDE CONSEGU1R AS1STENC1A LEGAL. Court Administrator 4th Floor, CUmberland County Courthouse Carlisle, PA 17013 (717) 240-6200 CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. NO. KENNETH A. CHASE and DORIS M. CHASE, Defendants CIVIL ACTION - LAW COMPLAINT AND NOW, comes Plaintiff Consumers Life Insurance Company by its attorneys, Eckert Seamans Cherin & Mellott, and files the following Complaint: 1. Plaintiff is Consumers Life Insurance Company (hereinafter "consumers"), a Pennsylvania corporation, with its principal place of business at 1200 Camp Hill By-Pass, Camp Hill, cumberland county, Pennsylvania 17011. 2. Defendants are Kenneth A. Chase (hereinafter "Chase"), and his wife Doris M. Chase, who reside, upon information and belief, at 3141 Josephine Street, Denver, Colorado 80205. 3. Pursuant to a General Agent's Contract dated May 1, 1991 (hereinafter "Contract"), Chase was appointed a general agent of Plaintiff Consumers to solicit, bind, write and administer insurance on behalf of Plaintiff. A true and correct . r-",'_ -, _T.T'~::.~~~..,.,...-f copy of the Contract is attached hereto and made a part hereof as Exhibit "A". 4. Pursuant to an Agent's Loan Agreement and Note, dated May 1, 1991, (hereinafter "Loan Agreement"), Consumers and Defendants agreed that Chase could receive cash loans to be repaid out of future commissions which he would earn pursuant to his Contract with Consumers. A true and correct copy of the Loan Agreement is attached hereto and made a part hereof as Exhibit "B". 5. The Loan Agreement provides, inter AliA, that "the agreement shall be enforced in the Common Pleas Court of cumberland County, Pennsylvania, or at the election of Company, where the Agent resides. The Agent, wherever he may be, submits himself to the personal jurisdiction of the courts of Pennsylvania. It is agreed by the Agent that the Insurance Commissioner of the state in which the Agent is licensed with the Company shall be the agent for valid service of process upon all parties to this agreement." (See Exhibit "B", !11.] 6. On October 25, 1991, Consumers exercised its op~ion to terminate Chase's contract pursuant to paragraph 22 thereof and his Loan Agreement pursuant to paragraph 4 thereof. (See Exhibit "A", ! 22; See also Exhibit "B", ! 4.] A true and -2- correct copy of the termination notice is attached hereto and made a part hereof as Exhibit "C". 7. Between the effective date of the Contract and of the Loan Agreement and the termination dates thereof, Consumers advanced substantial sums to Chase. 8. The Contract and the Loan Agreement provide that upon termin~tion of the agreement for whatever cause, the amounts due Consumers become due and payable by Defendants immediately. [See Exhibit "A", 'I 27; See also, Exhibit "B", 'I 5.] 9. The Loan Agreement further provides for interest at the rate of 1 1/2 percent per month on the unpaid principal balance owing and any and all accrued interest that may from time to time be added to the principal balance, commencing on the date of the Loan Agreement. [See Exhibit "BII, 'I '5.] 10. The Loan Agreement further provides that Defendants agree to pay reasonable attorney's fees, plus all other reasonable expenses incurred by Consumers in exercising any of its rights or remedies thereunder. [See Exhibit "B", 'I 5.] -3- .........,"',..,., '>-"'- 11. As of January 31, 1994 the balance owing under Defendant's Loan Agreement, with interest, totaled $2,530.93. Interest continues to accrue at the rate of $1.25 per day. 12. Despite written demand, the amount owing remains unsatisfied. 13. Defendants have committed a material breach of the terms of the Loan Agreement by failing to repay amounts loaned to Smith upon his termination, as agreed to in the Loan Agreement and Agents' Contract [See Exhibit "A", ! 27 and Exhibit "B", ! 5], and Plaintiff has been damaged thereby. 14. The amount in controversy does not exceed $20,000. WHEREFORE, Plaintiff Consumers Life Insurance company demands judgment in its favor and against Defendants Kenneth A. Smith and Doris M. Smith, jointly and severally, in the amount of $2,530.93 as set forth more fully hereinabove, together with interest at the rate of $1.25 per day from January 31, 1994, -4- -0//,,:_;'. -"'~~~A~~ ""'._-, attorney fees, costs ~f suit, and such other further relief as this Court may deem appropriate. BCKBRT IIIILLOTT . Kutz, Esquire Supreme ct. I.D. 121589 Mark D. Bradshaw, Esquire Supreme ct. I.D. 161975 One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance Company ~~ED: ~\( ~, (t11cj VERIFICATION I, James C. Robertson, an authorized representative of Consumers Life Insurance company, hereby verify and state that the facts set forth in the foregoing document are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.B.A. 54904 relating to unsworn verification to authorities. C. Robertson ident DATE: 6:101\ exhibit A .lnIU'tUG&4--,'CO.l..m." .011 ..eral. (i) ,) I) CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXECUTIVE OFFICES: 1110 Fernwood Avenue. Camp Hill. PA 17011 GENERAL AGENTS CONTRACT CONSUMERS LIFE INSURANCE COMPANY (referred to as the "Company") and, Kenneth S. Chase General Agent (referred to as Ihe "General Agent"), who hu offices at_ 716 Ritchie ;:Rd, Capital Heights, Mn ?n743lereby agreesas follows: I. TIle Company hereby appoints the General Agent with authority and power. subject to Ihe terms. conditions and limits herein set forth. for the solicitation of applications for Insurance and annuities Issued by the Company. This appointment is limited to Ihe following territory. but is not exclusive In such territory: N/A nlls General Agent appointment shall not give the General Agent exclusive rigbls: the Company reserves the right to appoint other General Agents within said territory. TIlls Agreement supersedes any and all contracts. stipulations and agreements. wrlllen or oral. existing prior to Its effeclive date lIS 10 all new business Iransacted on and after such date. No modification of this Agreement nor waiver of its provisions shall be valid unless it Is In writing and signed by Ihe General Agent and an Officer of the Company. TIle entire Agreement between Consumers Life Insurance Company and the General Agent includes this Agreement in Its entirety, Commission Schedule Rn'!: Prn 1 allached hereto and addendum N/A orriders N I A This Agreement shall become effective as of Ihe lst day of May . 19~, when signed by an authorize,d individual for the General Agent and an aUlhoriled Officer for Ihe Company. r J'~,~ OMPANY CONSUMER By: CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA By: () . () 2: TIle General Agent, subject to the approval In each case and under the rules and regulations of the Company, shall have authority to recommend agents to the Company. TIle General Agent agrees to pay agents'lIcense fees charged by the Insurance Department or the State or States In which the General Agent Is authorized to operate for all Agents appointed by the General Agent. 3. The General Agent In submltling appllcalions ror agents' appointments, shall use the printed or wrlllen fonns of agents' contracts supplied by the Company which shall be executed in triplicate and forwarded to the Company ror approval. The Company reserves the right at any lime to eanccl or rescind the appointment of any such agent ror any reason whatsoever. 4. (a) Unless otherwise provided, all premiums on policies (or contracts) wrlllen by or through the General Agent, aflerthe first premium thereon, shall be collected by the Company. (b) TIle General Agent shall be responsible to the Company ror all business produced by itself or Its agents. employees or other persons under Its supervision. (e) The General Agent agrees to Idemnlfy and save the Company harmless rrom any and alt expenses, costs, causes of action and damages resulting from and In consequence of unauthorized acts or transaellons by It, Its agents, employees or other persons under Its supervision. S. (a) The General Agent at his own expense, shall equip and maintain adequate oroce or oroces, for the transaction of Its business and the Company shall not be liable for any such expenses or other promotional expenses except that the Company will furnish to the General Agent application forms, specimen polley rOrlOS, together with any other printed materlallt,ln ils judgment, may deem advisable. (b) The General Agent shall keep a true and correct rccord and keep books or accounts on alltransaclions arising out or this contract and shall preserve and hold all documents. correspondence and records which come Into Its possession or under its control relaling to the form or policies which il is enlltled to solicit, sell and/orlssue ror the Company. The Company as often as it so desires may make examlnallon or all or the books and records or the General Agent as it may deem necessary and the General Agent shall do all things necessary to cooperate and assist the Company In making such examlnalion. (c) In the event that this contract shall be terminated ror any reason. the General Agent on demand, shall return to the Company all policies and other printed material then unused and In Its hands and shall make available the books and records or the General Agentlnsorar as they relate to the business or the Company, to enable the Company to make copies thereor. 6. (a) The General Agent shall solicit appllcalions ror the Insurance and annuilies herein mentioned, and use Its best errorts to promote the business and welrare or the Company. The Company shall prescribe the form, plan and character or the policy or policies ror which appllealions may be solicited, and may, rrom lime to lime, change, or dlsconllnue any plan, rorm or character or polley or policies, or contracts now or hereafter In use. The Company shall prescribe the premium rate and policy rees, Ir any, ror such policy or policies, or contracts and may change, decrease or Increase the said rates. (b) The General Agent shall have no power to make or aiter the policy or contract forms or condllions contained therein, or waive any of the provisions or condillons thereof, or modlry, alter or waive any of the Company's rates. 7. (a) The General Agent shall endeavor to promote the Interests or the Company as contemplated by this contract and shall so conduct Itself as not to arrect adversely the business. good standing or reputallon of itself or or the Company. (b) The General Agent agrees that it will not nor will it permit any misrepresentallon, misleading statement or incomplete comparisons to be.made by itself, Its agents or employees. orally or by any circulars, advertising mailer or llterature, which would be detrimental to the Interests or the Company or In viola lion of any of the laws, rules or regula lions or any Federal, state or City Department or Bureau having jurisdlclion thereor, nor will it violate or permit the vlolallon or any or the rules and regula lions of the Company. (c) Unless the prior wrlllen authorlzalion of the Company has been obtained, General Agent shall not use, permit or cause the Company's name to be used In any advertisement. circular or literature. 8. The General Agent shall deliver to the Company such proof of loss or other evidence of claim as Is presented and rued by the Insured or his beneficiary, or any other claimant to the Company, Immediately upon the receipt thereof. 9. The General Agent, Its agents and employees, within the territory prescribed, shalt be rree to exercise their own good judgment as to the persons from whom they wlll solicit insurance contracts and the lime and place of sollellalion, but the Company may from lime to time prescribe the rules and regulation respecling the conduct of the business covered thereby, which rules and regulalion shall be conformed to by the General Agent, Its agents and lis employees. Nothing contained in this contract shall be construed to create the relalionship or employer and employee between the Company and the General Agent or its agents. or its employees. The General Agent Is hereby consllluted and shall In all respects conlinue to be an independent contractor. () () 10. Transmittal of premiums.. deposlls or other funds received or paid to General Agent for the beneOfit of the Company, orin the Company's name. shall be governed by the following paragraph: (a) The Agency shall remit and transmit to the Company directly and promptly opon receipt, all such funds. gross, without deduction. II. The General Agent sl.all furnish and keep in force a Bond of Indemnity executed by a corporate surety satisfactory to the Company, in such form and In such amount as the Company may require. conditioned for the faithful performance of this contract and shalllncrcase the amuunt of said bond as the Company may require in case the premium Income of the General Agent becomes such as to require a larger bond, 12. (a) The General Agent agrees Ihat he will not. directly or indireclly. orin any manner whatsoever, payor allow, or offer to payor allow, any rebate of the General Agent commissions on any policy or contract Issued or proposed to be Issued by the Company. (b) The General Agent agrees that In the event of the cancellation of any policy or contract by rellSon of misrepresentation or misunderstanding, other legal cause. or, by mutual agrecment of Company and Insured, that all commissions paid to the General Agent on such policies or contracts shall be refunded 10 Ihe Company and the General Agent shall have no rlghl or claim to any commissions on such policies or contracts or damages by reason of any such rescissions or cancellations. (c) The General Agent shall refund ratably to the Company, on business heretofore or hereafter written, commissions on cancelled policies at the same rate at which such commissions were originally paid. tf the General Agent has sueeeeded to and carries on an agency formerly conducted by another. the General Agent shall pay return commissions on return premiums of such business as was wrillen by the predecessor agency or agents In the same manner and to the same extent as upon the General Agent's own business. unless the parties hereto have specifically otherwise agreed in writing. In case of impounding or holding in abeyance of premiums as a result of any court order or rule of any Insurance Department or other lawful authority. the commissions shall remain in abeyance In the same manner and to the same extent as the premiums upon which such commissions are payable. 13. No right or Interest arising by this Agreement shall be assigned by Ihe General Agent to any other person or corporation except by wrillen consenl of the Company. 14. Forbearance, failure or neglect on the pall of the Company to enforce any or all of the provisions of this contract shall not be construed lIS a waiver of estoppel of any of the rights or privileges of the Company. A waiver of a past act or circumstance shall not constitute or be deemed a course of conduct or waiver of a subsequent act or circumstance. IS. The General Agent agrees that it will not knowingly Issue or deliver. or permit the Issuance or delivery of any policies of insurance unless the applicant is In sound health. free from Impairment and infirmity and is an Insurable risk without special conditions or rating from an underwriting standpoint without the prior WlllIen consent of the Company in each instance, It shall cause each of its agents and employees to subscribe to and enforce the terms hereof and of all other provisions of this Agreement pertaining to General Agents, agents and employees. 16. The General Agent agrees that it will abide by all of the laws. rules and regulations of any Federal. State and City government, departmenl or bureau having jurisdiction or supervision over insurance and the conduct of such business In any phllSes thereof. and failure to comply with any of said laws, rules or regulations shall constitute a violation and breach of this contract. Suspension or cancellation of the license of the General Agent or of one of the principals, partners or principal officers thereof by any such governmental authorities, shall be cause for immediate termination of this Agreement. 17. This contract shali be void should the Company cease to do business Involuntarily in the territory embraced In the Contract. The contract shall also become void and ineffective should the General Agent be unable to perform under lis terms and conditions by reason of the cancellation or the denial of a license to it as an agency by an insurance department having jurisdiction over the territory embraced in this contract. the General Agent or the licensed principals (or partners) thereof. If the General Agent shall fail to comply or perform any of the terms or covenants of this Agreement, the Company shall give to the General Agent, ten days wrlllcn nollce to remedy the alleged non-compliance and upon failure to do so within the said ten days, this contract. at the option of the Company, shall become void and ineffective, 18. Should a Superintendent of Insurance in the States in which this Company operated, decree or order that the Company shall cease issuing any form or forms of the contracts or policies herein mentioned, then this contract shall be void as to such form or forms of contracts or policies that the Company may be obliged to discontinue. Should any court of competent jurisdiction make any decision which would prevent the Company from issuing any form or policy herein mentioned, then the contract shall be void as to that particular form or forms of contracts or policies. The provisions of this paragraph shall apply only to the State or territory involved. 19. The General Agent shall have no power or authority other than as specified In this contract unless specifically granted by the Company in writing, 20. The General Agent agrees that all applications for conlracts or polkies solicited by it shall be forwarded to the (...."...' -- ' n () Company promplly togelher wllh any other underwriting forms or information relallng to the applicant for the policy whether promptly submllted wllh the application or otherwise obtalncd. 21, (a) nle Company agrees to pay to the General Agent during the continuance of this agreement and the General Agenl agrees to acceptllS full compensation for all the services 10 be rendered by ilself. lIs agents and employees to the Company as set forth in Ihis conlract (Inclusive of all costs and expenses of the General Agent, ils agenls and employees), commissions based upon the premioms collected and paid to Ihe Company on forms of contracts or policies, herein menlloned and sold by the Agency us set forth In the Rider. "Schedole of Commissions", herelo auached. (b) nle Company shall have the rlghl to offset against any compensation due the General Agent. any debts now due or which may become due from the General Agenl at any time. and such obligations shall be a flrstlien against compensation now or hereafter due Ihe General Agent under this Agrcement. 22. (a) This contract shall continue in force unless Ihe General Agent violates any oflhe terms or breaches any of the covenants herein provided for, or unless otherwise terminated. Eitherparty may terminate this contract by giving thirty (30) days notice in writing to the other. Should this contract be terminated by either pany, renewal commissions if pay- able, shall be governed by separate agreement hereto auached. 23, If the General Agent shall at any time induce any policyholder of the Company to terminate his Insurance wilh Ihe Company or to replace II wllh any other Insurer, then Ihe General Agent's Interest In and rights to any renewal commissions or service fees shall Immediately cease and terminate. 24. (a) The Genernl Agenl will be paid commissions in accordancc wilh the Commission Schedule which Is made a part of this Agreement, subject to all of the provisions of this Agreement, on premiums paid to the Company In cllSh on policies issued by the Company upon applications procured by Ihe General Agent and/or Agenls. (b) The Commission Schedule, which Is made a part of this Agreement. may be changed at any time. but only with respect to applications received by the Company after such change. (c) If a policy, issued on any applications submlUed by the General Agent andlor his Agents. where the premium payment exceeds forty.flve (45) days past the expiration of the due date, the General Agent shall have no further Interest of any kind In such polley if II is reinstated at any later date, onless the General Agenl andlor Agent of the General Agent effects the reinstatements. (d) If a policy is changed or converted to a new policy on an application procured by Ihe General Agent andlor his Agents or, If a new policy Is Issued and an existing policy on the same life Is terminated wilhln six (6) months before or after the issue of the new policy, commissions payable on the new policy shall be determined by our Rules and Regulations current at the time of such change or new issue. (e) Commissions for plans which are not listed in Ihe Commission Schedule will be quoted In accordance with our Rules and Regulations. 25. In thc event of the termlnalion of this Agreemelll (for any reason. including death or disability), the General Agelll or his legal representative shall continue to receive commissions in accordance with the Commission Schedule to Ihe eX1C1Il that such commissions shall be receivable from premiums on policies through the 10th year provided a minimum of S I 00.00 renewal commission is due and payable ,vlthln a twelve (12) monlh period: however, if such termination.occurs within one (I) year from the date of this Agreement, the General Agent or his legal representative shall continue to receive only the flrst year commissions as provided for In the Commission Schedule. 26. During the continuance of this Agreement you will be paid a continued Service Fee on the premium paid in cash to the Company in accordance wilh the rate us shown in the Commission Schedule. 27. In the event of the termination of this Agreement for any reason. Including dealh ordisabililY, the General Agenl or his legal representalive shall pay 10 Ihe Company on demand any debit balance carried on Ihe General Agenl's account and any olher indebtedness doe the Company. If the General Agent is a Corporation. Partnership or other entity, all prin- cipals who arc licensed with the Company shall be jointly and severally liable to the Company to the same extent as the General AgenL GA82C . ~vhlhlt A AU-I'l"'UIOAl""""CU. 1-"'.." t.ll IIIC1ClIO (i' - . ---- -- f,.~- (') n ~ONBUM~RB .: CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXECUTIVE OFFICES: 1110 Fernwood Avenue, Cemp Hili, PA 17011 AGENT'S LOAN AGREEMENT AND NOTE THIS AGREEMENT CREATES A SECURITY INTEREST AND LIEN ON AGENrS COMMISSIONS THIS AGREEMENT Is enlered Into on the 1st May .19 91 day of by end between CONSUMERS LIFE INSURANCE COMPANY or CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA, Cemp Hill. Pennsylvania ("Company"), end Kenneth A. Chase (end spouse (Agen') or guarantor il so exacuted). WHEREAS. Agant hBl In forca with Company an Agent's Contract which authorizes Agent to procure applications lor lila and ennuity Insurance which provides for payment of scheduled commissions as premiums era paid to the Company on policias iBlued pursuant to such applications (Agant's Contract"): and WHEREAS. Agent desires to receive cash loans to be secured by such commissions scheduled in the Agent's Contract; NOW. THEREFORE. Company agrees to lend to Agent, and Agent promises to repay to Company. the sums described in this Loan Agreement and Note subject to the terms and conditions contained herein: 1. Amount 01 Loans. Subjact.o tha specific understanding and agreement that compensation 01 the Agent by the Company Is solely by commissions as specified in the Agent's Contract. the Company heraby agrees to land the underslgnad agant an amount not to excaed $1,000.00 per case. Subiect to such maximum limitations. the emount of such loans shall be determined as follows: 1.1 The amount 01 said loans shall be a parcentage 01 said commission. which percentage the company. In its sole discre- tion. shall datermine. The initial percentage shell be 40/,35 based on the planned periodic premium up to and includ- ing target premium. 1.2 Tha percantage lor advances shown above may be changed by the Company by wrillen notice. Any change made will apply to subsequent advancas. 1.3 From any loans hereunder, there will be deductions taken lor the commission collateral lost on account on lirst year lapses. applications withdrawn. and policies returned to Company as "not.taken:' 1.4 This Loan Agreament and Note shall not apply to insurance wrillen on the lile of the Agent or any member of Agent's immediate family. 2. Nature of Loans/Repayment. Agent agrees and understands that all monies advanced hereunder are neither salary nor an uncon- ditional obligation owed by the Company lor any purposes. and theAgent shall remain unconditionally bound to repay such sums either by direct repayment or direct deduction from commissions in respect to premiums paid to Company or both. Such sums shall first be charged against and initially repayable from Agent's commissions. 3, Security. The indebtedness evidenced by this Agent's Loan Agreement end Note is secured by a first and superior lien in levor 01 Company upon any commissions or other compensation or sums or accounts receivable now due or hereafter accruing to Agent from Company or from any other source to secure Agent's performance hereunder end the repsyment of ell sums due Irom Agentto Company as a result of loans made hereunder or pursuant to any other Note, loan, or other agreement between Agent and Company. 4. Termination. The Company releNes the right to terminate this loan agreement at any time upon written notice to Agent. The loregoing notwithstanding, the security liens craated hereunder and Agent's obligation to repay loans hereunder shall survive any such termination. 5. Rights Upon Termination. Upon lormination of Agent's Contract or this Loan Agreement and Note. for whatever cause, the sum equivalenl to the amount due Company hereunder and under any other loan agreement botween Company and Agent shall, upon such lerminatlon, become the Principal Amount owing on Ihis Loan Agreemenl and shall become due and payable by Agent immediately upon such lerminatlon. Agent hereby agrees to repay to Company. or order, such Principal Amount. with interest computed on the basis I) I) of a 360 day Yllr for tha actual numbar 01 day. In 8Ich Intara'l parlod on tha unp.ld prlnclp.1 b.lancallncludlng .ny and all accrued Inlera.llhai m.y fro'm timalo tima be .ddad 10 tha principal balanca haraof) from the dal. of thl.Lo.n Agr.em.nland Note unt\! paid, al Iha rala of 1 WIt, per monlh on the unp.ld b.lanc. owing, Prlnclp.land Int.r.sl .hall b. payabl. at the offic. of the Company, Camp Hili, P.nn.ylvanla. or al.uch olher pl.c. .'Ihe notaholdar may d..lgn.le, Upon Ihel.llur. of th. Ag.nt to p.rform any obligation undar Ihl. Agreamanl. Ihe Company may .mploy on. or mara allorn.y. to .nforc. il. right. .nd r.m.dl... andAg.nt har.by agr...lo pay re..on. abla allomey's f... plu. .11 oth.r r...onabl. e.p.ns.slncurr.d by the Compsny in ..erclsing any 01 it. rlghl. .nd r.medl.. heraunder. Company .h.1I have no oblig.lion to ..ek r.paymenl or coll.ct any lo.nslrom .ny Olh.r por.on or enlily belor. coll.cling Ih.loan from Ihe Ag.nt. Ol.cherg. oleny oth.r pOrion or .nlllY from liability for alo.n .h.1I nolalloct Agenrsli.bility und.rthis Agent'. Lo.n Agr.a. manl .nd Nol.. 6, RighI of Prep.ym.nt. Ag.nl m.y pr.pay the princlp.1 emount outstanding in whol. or in pari, No'\lr.p.yment p~n.llY shell b. charg.d. 7. S.curity and Sel.Off. To s.cur. Ih. r.p.ym.nl 10 Company of all .mounts oul.t.nding .nd the p.rformanc. of .11 oth.r obllg.llons 01 Ag.nt 10 Comp.ny, wh.lher now ..I.ting or h.re.h.r arising, Ag.nl acknowl.dg.. .nd .gr.ea Ihal Company may ..I,off any and .lIe.l.ting or fUlure amounl. agaln.l.ny 8Irn.d commisalon. or other .ums payabl.loAgenl by Company. To fUrlhar a.cure auch rep.ymanl, Aganl h.raby ...Ign. and grant. 10 Comp.ny a ..curllY intare.lln all com million. and any other.um. payabla which ara now or m.y from lima 10 lima herllUar be ..rnad by or owing 10 Aganl from Comp.ny r.g.rdl... whalhar .uch .um. are aarned a. Ag.nl comml..ion. or otharwl.a, 6. Oocum.nlallon. Al the raqua'l of Company. Agent wille.ecut. .nd d.liv.r 10 Comp.ny .uch promlsaory nol... or oth.r evld.nc.. of Ind.bl.dn...... Comp.ny m.yr.qu..t. 10 fUrlh.rdocum.nt the amounl outst.ndlng, In addllion. Ag.ntagr..slo ..acute. d.liv.r, fil.. or racord any .nd .11 notic.s, financing alat.m.nt., ..curlty agr..manla, .lIignm.nt. or .ny oth.r docum.nl. which Company may d..m n.c....ry or d..lr.blalo .lIact. prot.ct. or p.rf.Cllts right of ..t.oll. s.curity inl.rest .nd paramounl.nd prior lI.n In the com- ml..lon. hereinabove ...Ign.d. 9, Assignm.nl, Company m.y ..sign Its righla under Ihls add.ndum. .nd Agenl hereby consents to such ..signment. 10. Waiver. Pres.nlm.nt. notice 01 dishonor. and prot.sl .r. h.r.by waivad by the Agent and any surely. guarantor and en- dOrler h.reof. 11. Jurisdiction. This Agreem.nl Is made In Camp Hill. Pennsylvanl.. and sh.1I b. gov.rned by Ih.l.ws of Ih. CommonweaUh 01 P.nn.ylvanla. This Agre.n,enlshall be enforc.d In Ih. Common Ple.s Courl of Cumb.rl.nd County. P.nnsylv.ni., or.t Ihe .I.clion 01 Ih. Comp.ny. wh.re Ihe Agenl resid.., The Ag.nt. wher.v.r h. m.y be, submits himself to the person. I jurisdiction ollh. courl. 01 Pennsylv.nla. II is agre.d by Ih. Ag.nllh.llh. Insur.nce Commlssion.r ollhe .Iale in which Ih. Agent is licens.d with Ihe Company sh.1I b. .genl for v.lld s.Nlc. of process upon all parli.s 10 Ihl. Agreemant, IN WITNESS WHEREOF. Ih. undarsigned parlie. h.ve ..ecuted this Loan Agre.ment and Nole to be .ffective on Ih. dal. fir.t .bove .ppe.ring. ~NSUMERS LIFE I o CONSUMERS LIFE I ANY NY OF NORTH CAROLINA ~ ~- ~1/'2.; ~/.J.~ Witness BY: Authoriz. Officer IN~DIVI AGEtn:-/ Z- /7 / "-----..-=" ~.L-/ _~ ~~c::^~ A ent ' .~~...:.. "M- /!.L~L- (SEAL) Agenr. Spou.. ATTEST CORPORATE AGENT Nam. 01 Corporation S.crelary BY: AUlhoriz.d Officer (SEAL) (SEAl) Wiln.s. Guarantor (Individu.1 guar.nleeing loan for Corporal. Agent) Guarantor (Individual guaranteeing loan lor Corporal. Ag.nt) Witness 6/3/6B ...~'U"IIQ.&o.~'W l._m." ItIl1 IlIClf"dO @ Exhibit C