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HomeMy WebLinkAbout94-01827 / I j ) jl ~ dI; - ~t: :.!:w:~ I: ~~~;;: o -ot~~ f11 ~ =0:-', 0,...::;;:. N ov,O":{) ~t~:r: .~~ !...11;, .. ~ oo::x . .-....- ,..-. ==, '~:~ ;.... ~) ~~ ~ ~ '\~ -- ~ \~ ~ "I.) \3'-0 Q ,~ ~ ~ ~ ~ ~; N & MEllOIT ECKERTSEAM~~S~X~;~I 0 RIG I NA L - IIAR.UJS8URC.!:A 17108 17171 2'17,.000 ~ ~ ~ ~~ . CONSUMERS LIFE INSURANCE . . COMPANY, . . Plaintiff . . . . v. . . . . GRANT F. DUHART and : CRYSTAL DUHART, . . Defendants . . IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA /'Y " J~ NO. (/4- If) '1 ~ CIVIL ACTION - LAW HOT I C B YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, yo~ 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 H 0 TIC I A LE RAN DEMANDADO A USTED EN LA CORTE. si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la 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 petie ion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE UTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TlINE EL DINERO SUFICIBNTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAMB POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA 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. GRANT F. DUHART and CRYSTAL DUHART, Defendants CIVIL ACTION - LAW COMPLAIH'l' AND NOW, comes Plaintiff Consumers Life Insurance Company by its attorneys, Eckert Seamans Cherin , Mellott, and files the followinq 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, Ounberland County, Pennsylvania 17011. 2. Defendants are Grant F. Duhart (hereinafter "Duhart"), and his wife Crystal Duhart, who reside, upon information and belief, at 15598 Peach Walker Drive, Bowie Maryland, 20716. 3. Pursuant to a General Aqent's Contract dated December 12, 1989 (hereinafter "contract"), Duhart was appointed a qeneral aqent of Plaintiff Consumers to solicit, bind, write and administer insurance on behalf of Plaintiff. A true and .__._~- correct 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 April 3, 1991, (hereinafter "Loan Agreement"), Consumers and Defendants agreed that Duhart 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 liB". 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 December 10, 1990, Consumers exercised its option to terminate Duhart'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 HC". 7. Between the effective date of the Contract and of the Loan Agreement and the termination dates thereof, Consumers advanced substantial sums to Duhart. 8. The Contract and the Loan Agreement provide that upon termination of the agreement for whatever cause, the amounts due Consumers become due and payable by Defendants immediately. [See Exhibit HA", ! 27; See also, Exhibit "B", ! 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 "B", ! 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", ! 5.] -3- p;.""~..'}~?_'W;*:,.<,~..~ 11. As of January 31, 1994, the balance owing under Defendant's Loan Agreement, with interest, totaled $2,332.95. Interest continues to accrue at the rate of $1.15 per day. 12. Despite repeated written demands, the amount owing remains unsatisfied. A true and correct copy of such demand is attached hereto and made a part hereof as Exhibit "D". 13. Defendants have committed a material breach of the terms of the Loan Agreement by failing to repay amounts loaned to Duhart upon his termination, as agreed to in the Loan Agreement and Agents' Contract [See Exhibit "A", ! 27 and Exhibit "8", ! 5], and Plaintiff has been damaged thereby. 14. The amount in controversy does not exceed $20,000. WHEREFORE, Plaintiff Consumers Life Insurance Company demands judqment in its favor and against Defendants Grant F. Duhart and Crystal Duhart jointly and severally, in the amount of $2332.95 as set forth more fully hereinabove, together with interest at the rate of $1.15 per day from January 31, 1994, -4- attorney f..s, costs of suit, and such other further relief as this Court may d... appropriate. =EO: ~l ~ f(q~/ BCItBllT fq CRUI. " JlBLLO'1'T /~\_ 0>> James J. Kutz, Esquire supreme ct. I.O. 121589 Mark o. Bradshaw, Esquire Supreme ct. I.O. 161975 One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance Company VERIFICATION I, James C. Robertson, an authorized representative of Consumers Life Insurance company, hereby verify and state that the facts set forth in the foregoing document are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.B.A. 54904 relating to unsworn verification to authorities. C. Robertson ident DATE: '2013 ~v"'Ih.U A a,,"IIIIIQ&<...-..UO '_11'." II'" "'C'Cl.ID @ ., i I ~ , ' , I t j I; [ j t, l "I t'j I r.-.! I,' -~ ~..' , ') () .CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXEcunVE OFFICES: 1200 Camp Hill By.P.... Camp HiI. Pem.ytv.... 17011 GENERAL AGENrS CONTRACT CONSUMERS LIFE INSURANCE COMPANY (referred 10 as the "Company") and, r..D.4NT J: nll~.4DT General Agen. (referred 10 lIS Ihe "General Agenl"), who has ornces al _ 532 I\OoRC RO., I1ILLCR$VI LLC, 110 21198 hereby .grees as follows: I. TIle Company hereby appoints the Gencral Agen. wllh aUlhorily and power, subjecl 10 lhe 'erms, conditions and IImlls herein sel forlh, for Ihe sollcllallon of applications for Insurance and annuities Issued by the Company. This appoln.ment Is Iimlled 10 .he following lerrllory, bUlls nOI exclusive In such lerrilory: N/.4 This General Agenl appolnlmenl shall nOI give thc General Agenl exclusive rights; the Company reserves Ihe right 10 appoinl other General Agenls wilhln said territory. This Agreemenl supersedes any and all contrac.s, slipulallons and agreemenlS, wrlllen or oral. exlsllng prior 10 lIs effeclive dale lIS 10 all new business transacled on and after such dale. No modtncation of Ihls Agreement nor waiver of its provisions shall be valid unless it Is In wrlllng and signed by the General Agenl and an Officer of the Company. The entire Agreemenl belween Consumers Life Insurance Company and Ihe General Agenlincludes Ihls Agreement In I's enllrely, Commission Schedule au ached hereto and addendum 8,% PRO T I\IIA orrlders 1\11 A This Agreement shall bccome -rfectlve as of the 1 ?T'" day of nl=f" aUlhorized Individual for .he General Agent and an aUlhorlzed Officer for .he Company. , 19B.9.., when signed by an G:#~ 7X / ?c;..c:(- ./ URANCE COMPANY - CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA By: ~- " ) 2. The General Agenl, subject 10 the IpproYll In elch case IRd under the rulcslRd resulatlollJ of the Complny, shall have IUlhorlty 10 recommend 1gents 10 the ComplRY. The General Alent lareeslo PlY Ilents' IIcellJe fees charled by the InsurlRcc Department of the Stlte or Stites In which the General Asenlls authorized to operate for all Alents appointed by the General Alent. 3. The General Alent In submlttlnl applications for alents' appointments, shall use the prlnled or written fonns of alenls' contracts supplied by the Company which shall be executed In tripllcale and forwarded to the Company for approval. The Complny reserves the nabt at IRY time to cancet or rescind Ihe appointment of Iny such alent for any reuon whatsoever. 4. (a) Unless otherwise provided, all premiums on policies (or conllacls) written by orthrouab the General Agent. arter the fint premlum thereon, shall be collected by the Company. (b) The General Agent shall be respollJlble to the Company for all business prO<luced by luelf or Its agents, employees or other penollJ under Its supervision, (c) The General Agent Igrees to Idemnlfy and lave the Company harmless from any and all expenses, COlli, causes of action and c1amaaes resultlnl from and In consequence of unauthorized acts or transactlOllJ by It, Its agents, employees or other penollJ under Its supervision, 5, (a) The General Asent II his own expense, shall equip and maintain adequate ornce or ortlces, for the tralUlctlon of Its business and the Company shaD not be lIabte for any such expenses or other promotional expenses except lhat the Company will fumlJh to the General Agent application forms, specimen policy forms, tOlether with any other printed matertallt,ln Its judgment, may deem advlsabte. (b) The General Asent shall keep a true and correct record and keep books of accounts on alt transactions arising out of this contract and shaD preserve and hold all documents, correspondence and records which come into ils possession or under Its control relating to the form of policies which It is entitled to solicit, sell and/or Issue for the Company. The Company as often 15 It so dedres may make examination of all of the books and records of the General Asent 15 it may deem necessary and the General Alent shall do all things necessary to cooperate and uslst the Company In making such examination. (c) In the event that this contract shall be terminated for any reuon, the General Agent on demand, shall return to the Company alt policies and other printed material then unused and In Its hand.! and shall make available the books and records of the General Agent insofar as they relate to the business of the Company, to enable the Company to make copies thereof. 6. (a) The General Agent shall solicit applications for the Insurance IRd annuities herein mentioned, and use its best efforts to promote the business and welfare of the Company, The Company shall prescribe the form, plan and character of the policy or policies for which applications may be solicited, and may, from time to time, change, or discontinue any pllR, form or character of poliey or policies, or contracts now or hereafter In use. The Company shall prescribe the premium rate IRd policy fees, if any, for such policy or policies, or contracts and may change, decreue or Increase the said rates. (b) The General Agent shall have no power to make or alter the policy or contract forms or conditions contained therein, or walve any of the provisions or conditions thereof, or modify, alter or waive any of the Company's rates. 7. (a) The General Agent shall endeavor to promote the Interests of the Company u contemplated by this contract and shall so conduct Itself u not to affect adversely the business, good standing or reputation of Itself or of the Company. (b) The General Agent aarees that It wiD not nor wiD It permlt any misrepresentation, misleading statement or Incomplete comparisons to be made by Itself, Its agents or employees, orally or by any circulars, advertising mailer or literature, which would be detrimental to the interests of the ComplRY or in violation of any of the laws, rules or regulations of any Federal, Slate or City Department or Bureau having jurisdiction thereof, nor wiD It violate or permit the violation of any of the rules and regulations of the Company. (c) Unless the prior written authorization of the Company has been obtained, General Agent shall not use. permit or cause the Company's name to be used In any adverli.lement, circular or literature. 8. The General Asent shall deliver to the Company such proof of loss or other evidence of claim as Is presented and flied by the Insured or his beneficiary, or any other claimant to the Company,lmmedJately upon the receipt thereof. 9. The General Agent, lis agents and employees, within the territory prescribed, shall be free to exercise their own good judgment u 10 the persons from whom they wID solicit Insurance conlracts and the time IRd place of solicitation. but the Company may from time to time prescribe the rules and resulatlon respecting the conduct of the business covered thereby, which rules and resulatlon shall be conformed 10 by the General Agent, Its agents and Its employees. Nothing conlalned In this contract shall be construed to create the relationship of emptoyer and employee between the Company and the General Agent or Its Igenls, or Its employees. The General Agent Is hereby consUlUIed and shall In all respects continue to be an Independent contrlctor. '-, 10. TIJII51111ltall)! plClllllll1lS.. ,k!)ll\ll,> .11 tltlit'l ~l:::~h It'd;IVt'll ;11 1'.11.1 {'1 t.nn:fa! :\\!el1t Jpl Ill\.' (H'lIt'lll lJI Ita.' Cumpany. t1r IIlllle COlllpJI1\"S flJml', :-.lulll'L' ~\l\<.'rrH'd h th' !"ll.\\"HI~ !1.1!.H'rJph (JI The:- Ag.cnr.::y ~hJlllcn1l1 Jnd tr.lll\llllt [d Ihl..' i "l1li',llly dlll'~li\ ,llld I'!!"'lllptlv !I!'un 11.'1.:\"1'1. ;lll,u~h IUIlIh. gruss. wlthoul J~du'tlUn. II. Thl' (;enerJJ ,\g.ent shJU futlmh .Hld J...~CI' 111 tnr.:t,.' ;J Btllld dl Irllh.'IlHllh \'\C:(IlIL'tl hy .l ':olpnr.lh' ',UIl.'l~~ SJtlS.fJ~llJfY h) lh~ Company, 10 sud. fUflll J.ud III s'h.:h JltJdUllt.1.:. I ilL' ("llnp.lllY nuv fl'qUHL'. ....PlllJltlllllnl 1\11 lilt' IJilhlul perfort11an..:e l>1 this ..:ontrar.::t and SohJl1 in\..'fC'JSl' the Jl1l1H11I1 IIf SJld twnu J't Ih.... ('l)rnp;lIIV Il\J\' ll~qUlfL' III (.I\L' !IIL' premIUm In~tJI1lC llf the Gener::!1 Agent bL'(lll1it:S !lIJl:h J~ W Il'l!UUl' J IJf~l.t htJlhl. 12. IJ) Th~ G~nefaJ ,\gent J~H~e~ that he will 1I0t. dHcdly or lI1dllc~tly, 01 III ;Jn~' lllanner \\hJlStl~..:cr, pay ilr allow. ur ,1If.:r to payor allow. an)' rebate of the G~nerJI A~.:nt ~omml'\SlUns un any policy or i.:\HHIJ~t l'i"ucd UI prop<>sed 10 be ISsoed by Ihe CompallY, (b) The General Agenl allfees Ihal III the e"ent of Ihe call cella lion of allY pohcy or collllact by reason 01 misrepresentation or misunderstanding. olher legal ~ausc, Uf. by mutual agreemcnt of Company and Insured. that all commISSIons paId 10 Ihe General Agenl on such pohcles or conllacts shall be refunded to Ihe CompallY and Ihe Gelleral Agent shall have no nght or claim to any ~omrnissJOns on !iul'h polklcs or ~\)ftlracts or damages by reason of any ~lJch rescissions or cancellations, (~) The General Agent shall refund rJtabh' tll the Company, on buslI1css heretofore or hcreafler written, comllnSSlOns on ~ancellcd policies at the same ratC' at \\'hl~h :\w.:h l..'umI11lS"iIOI1S wcrc..~ ongjnally pall1. If the G~nerat Agent Ius succeed~d to Jnd carries on an agency formerly \:ol1ductcd by anothcr. the General Agent ...h::lll pay return commissiuns on return premiums oi such bUSiness as was written by the predecessor agellcy or agents II) the saine manner and to the same extent as upon the General Agent's own business. unless the parties hereto ha\'c specifically otherwl~e agreed in writing. In case of impounding or holding in abeyance of prclluums as a result of any court order or rule of Jny insur:lI1ce DepaClment or other lawful authority. the commissiuns shall remain in abeyance It) the same manner and to the same extenl as Ihe premiums upon which such commIssIOns arc payable, 13. No ri~t or interest arising by Ihis Agreement shall be assigned hy the Gencral Agenl to ;Jf1Y other person or corporaHon excepl by wrillen consent of the Company, 14. Forbearance. failure or neglect on the part of the Company 10 enforce any or all of the promions of this conllaCI shall nol be construed", a waiver of eSlUppel of any of the IIghls or pllvileges of the Company, ,\ waIver of J past :let or circumstance shall nut constitute or be deem~d :I l.."ourse of conduct or waiver of a subscquenl act ur circumstance. 15, The General Agent allfees Ihat iI will not knowmgly issue m deliver. or permHlhe issuauce or deli,'ery of any policies of insurance unless the applicant IS in sound heJllh. free from nnp3llmenl alld inlirnnlY aud is an insurable risk wilhout special condilions or rating from an underwriting standponll wHhom Ihe prior 'mllen consent of the Company in each inslance. It shall cause each of ils agenls and employees 10 subscribe to alld enforce the terms hereof and of all other provisions of Ihis Agreement perlainlng to General Agenls. agenls and employees, 16. The General Agenl agrees Ihat it will abide by all of Ihe laws. lilIes aud regulallons ,)f any Federal. State and City government. deparlment or bureau having jurisdiction or supervision over mSUlance and Ihe conducl of such business in any phases Ihereof. and failure to comply \\;th any of saId laws. rules or regulations shall conStItute a violation and breach of Ihis contracl, Suspension or cancellation of the license of Ihe General Agenl or of one of the principals. partners or principal officers Ihereof by any such governmenlal aUlhorities. shall be cause for .mmediate termination of this Agreemenl, 17, This contract shall be void should the Company cease to do business involuntallly in the lerr1l0ry embraced in the Conllac!. TIle contract shall also become void and ineffective should Ihe General Agent be ullable 10 perform under ilS lerms and conditions by reason of Ihe cancellation or the denial of a license to il as an agency by an insurance department having jurisdiction over the terrilory embraced in Ihis conllact. Ihe General Agent or Ihe licensed principals (or partners) thereof, If the General Agent shall fail to comply or perform any of Ihe terms or covenants of this Agreement. Ihe Company shall give to Ihe General Agent. len days written nOlice to remedy Ihe alleged non..:ompliauce and upon failure to do so wilhin Ihe said ten days. this contraCI. al Ihe option of the Company, shall become void and ineffeclive. 18. Should a Superintendent of Insurance in Ihe States in which this Company operated. decree or order thallhe Company shall ce",e issuing any form or forms of Ihe contracts or policies herein mentioned. Ihen Ihis contract shall be void as to such form or forms of contracts or policies Ihallhe Company may be obliged 10 discontinue, Should any court of competent jurisdiction make any decision which would prevenl Ihe Company from issuing a~y form or policy herein mentioned. then the contract shall be void", 10 Ihat particular form or forms of contracls or policies, The provisions of this paragraph shall apply only to Ihe Slate or terrilory involved. 19. The General Agent shall have no power or authorlly olher Ihan as specilied in this contraclunless specifically gran led by the Company in writing, 20, The General Agent allfees Ihal all applications for conllaCls or policies solicited by il shall be forwarded to Ihe n '} Company promptly together with any olher underwriling forms or information relating to the appllcanl for Ihe polic)' whether nromplly sub milled wilh Ihe application or olherwise oblained. 21. (a) The Company agrees to pay 10 the General Agenl during Ihe continuance of thls agreement and the General Agent agrees to accept as full compensation for all the services to be rendered by ilsclf, its agents and employees 10 Ihe Company as set forth In Ihls contract (Inclusive of all COSIS and expenses of thtllGeneral Agent, its agenls and employees), commissions based upon the premiums collecled and paid 10 Ihe Company on forlns of contraers or policies, herein mentioned and sold by Ihe Agency as sel forth in the Rider, "Schedule of Commissions", hereto altached. (b) The Company shall have the right to offset agalnsl any compensation due the Ceneral Agent. any debrs now due \lr which may become due from the General Agent al any lime. and such obligations shall be a first lien against compensation now or hereafter due the General Agenl under Ihis Agreement. u.. (a) This contract ,hall continue in force unless the General Agent violates any of the terms or breaches any of the covenan's herein provided for, or unless otherwise terminated Either pany may terminate this conlract by giving thiny (30) days notice In writing to the other. Should this contract be terminated by either pany, renewal commissions lfpay. able, shall be governed by separate agreement hereto allaehed. 23. If the General Agent shall at any time induce any policyholder of the Company to termlnale his Insurance with the Company or to replace it with any other Insurer, then the General Agent's Interest in and rights to any renewal commissions or service fees shall Immediately cease and terminale. 24. (a) The General Agent will be paid commissions in accordance with the Commission Schedule which is made a p: ,of this Agreement, subject to all of the provisions of this Agreement, on premiums paid to the Company In cash on policies Issued by the Company upon applications procured by Ihe General Agent and/or Agents. (b) The Commission Schedule, which Is made a parI of Ihis Agreemenl, may be changed at any time, but only with respect 10 appllcalions received by the Company after such change. (c) If a policy, Issued on any applications sub milled by the General Agent and/or his Agents, where the p.emlum payment exceed.! forty.five (45) days pasl the expiralion of the due date, the General Agent shall have no fn.her I ,terest o. any kind In such policy if it is reinstated al any later dale, unless the General Agent and/or Agenl of the General Agent effects Ihe reinstatements. (d) If a policy Is changed or converted 10 a new policy on an applicalion procured by the General Agent and/or his Agents or, if a new policy Is issued and an exisling policy on Ihe same life is termlnaled within six (6) months , efore or after the issue of the new policy, commissions payable on the new policy shall be determined by our Rules and Regulalions current at the lime of such change or new issue. (c) Commissions for plans which are not listed In Ihe Commission Srhedule will be quoted in accordance with our Rul~ and Regulations. 25. In the event of the termlnalion of this Agreement (for any reason, including death or disability), the General Agent or his legal represenlalive shall conlinue to receive commissions i'l accordance with the Commission Schedule to Ihe eXlenl that such commissions shall be receivable from premiums on policies through the 10lh year provided a mlnlmum of S\OO.OO renewal commission is due and payable within a twelve (12) month period: however, If such lerminalion.occurs within one (I) year from the date of this Agreement, Ihe General Agent or his legal represenlative shall continue to receive only the first year commissions as provided for in the Commission Schedule. 26. ()olrinr the continuance of this Agreemenl you will be paid a continued Service Fee on the premium paid in cash to the Company In accordance with the rate as shown In the Commission Schedule. 27. In 'he event of the terminalion ofthis Agreement for any reason, including death or disability, the General Agent or his legal representative shall pay to the Company on demand any debit balance carried on the General Agent's account and any other indebtedness due the Company. If the General Agent is a Corporation. Pannership or other entity, all prin- cipals who art "censed with the Company shall be jointly and severally liable 10 the Company to the same extent as the General AgenL GA82C ~~""I""I.. .. ~,-.y,-" "". ',..,,:.""',"'" "-~'i""""""'-' au'IaI'U~~'CO '....... 101. .t1'Q.1O <i '"..., ) E=ONBUMER& = CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXECUTIVE OFFICES: 1110 Fernwood Avenue. Camp Hill. PA 17011 AGENT'S LOAN AGREEMENT AND NOTE THIS AGREEMENT CREATES A SECURITY INTEREST ANO LIEN ON AGENrS COMMISSIONS THIS AGREEMENT is entered into on the 12TH day of .19 89 OECEMBER by and between CONSUMERS LIFE INSURANCE COMPANY or CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA. Camp Hill. PennsylvaniaI"Company"). and r.OA"'T nlU..fdDT (Ag.n.) (and spouse or guarantor if so executed). WHEREAS. Agent has in forcewoth Company anAgent's Contract which authorizes Agenlto procure application. for life and annuity insurance which provides for payment of scheduled commissions 8S premiums 8ro paid to the Company on policies issued pursuant to such applications (Agent'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 10 the terms and conditions contained herein: 1. Amount of Loans, Subject to the speCific understanding and agreement 'hat compensation of the Agent by the Company is solely by commissions as specified in the Agent's Contract. the Company hereby agrees to lend the undersigned agent en amount not to exceed $1.000,00 per case. Subject to such maximum limitations. the amount of such loans shall be determined as follows: 1,1 The amount of said loans shall be a percentage of said commission. which percentage the company. in its sole discre" tion. shall determine. The initial percentage shall be 25/50 based on the planned periodic premium up to and includ. ing target premium, 1.2 The percentage for edvances shown above may be changed by the Company by written notice. Any change made will apply to subsequent advances. 1.3 From any loans hereunder. there will be deductions taken for the commission colla.erallost on account on first year lapses. applications withdrawn. end policies returned to Company as "noHeken:' 1.4 This Loan Agreement and Note shall not apply to insurance written on the life 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 Bre neither salary nor an uncon. ditional obligalion owed by the Company for any purposes. and the Agent 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 and Note is secured by a first and superior lien in favor of Company upon any commissions or other compensation or sums or accounts receivable now due or hereaher accruing to Agent from Company or from any other source to secure Agent's performance hereunder and the repayment of all sums due from Agent to 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 reserves the right to terminate this loan agreement at any time upon wrinen notice to Agent. The foregoing notwithstanding. the security liens created hereunder and Agent's obligation to repay loans hereunder shall survive any such termination. 5. Rights Upon Termination. Upon termination of Agent's Contract or this Loan Agreement and Note. for whatever cause. the sum equivalent to the amount due Company hereunder and under any other loan agreement between Company and Agent shall, upon such terminallon. become the Principal Amount owing on thiS Loan Agreement and shall become due and payable by Agent immediately upon such termination. Agent hereby agrees to repay toCompanv. or order, such Principal Amount, with interest computed on the basis t -t , ~ol:~ , t , .~ , { l! ! t ~ , ' I I' I' I' ( ! ; . ~ ..~ -. r) of I 360 dlY y""r for Ihl ICIUII numblr 01 dlYI in elch inlerell period on Ihe unplid principII blllnce (including Iny Ind III Iccrued Inllrelllhll mlY from limllO liml bl Idded 10 Ihe principii blllncl hereof) from Ihe dlle of thil LOin Agrllmenllnd NOle unlll Plid, II Ihe roll of 1 W16 per monlh on Ihl unplid blllnce owing, PrincipII Ind Inlerell Ihlll be POVlble Illhe ollice ollhe Complny. Clmp Hill. Pennlylvlnil. or luuch olher pi Ice IIlhe noleholder mlY delignlle. Upon Ihe Ililure of Ihe Agenllo perform Iny obligllion underlhll Agreemenl.lhe Complny mlY employ one or more Ittomeyslo enforce ill righll Ind remedies. snd Agenl hereby Igreello psy reason- Ible Inorney's fees plul sll olher rellonlble expenses Incurred by Ihe Compsny in exercising Iny 01 i1s righll Ind remedies hereunder. Complny Ihlll hive no obllgltion 10 leek replymenl or collecllny 10lnllrom Iny olher perlon or entilY belore collecling Ihe lOin from Ihe Agent. Oilchlrge of Iny Olher person or enlilY from lilbilily for Iloln shill nol"""cl Agenrllilbilily under Ihis Agenrs LOin Agree- menl Ind Nole. 6, RighI of Preplymenl, Agenl mlY preplY lhe princlpsl Imounl OU1IlSnding in whole or in pin. No prepsymenl penllly shill be charged. 7. Securily snd Sel-Off. To secure Ihe repsymenllO Complny of III ImounlS oulSllndlng Ind Ihe performlnce of III other obllgllions of Agenllo Company. whelher now exllling or herelfler lrillng. Agenl Icknowledges Ind Igreel Ihll Complny mov leI-oil Iny Ind III exllting or fulure Imounll Iglinlllny elrned commllllonl Dr olher luml plYlble 10 Agenl by Complny. To further secure such replymenl, Agenl hereby Inlgnl Ind grlnlllo Com piny I lecurlly Inlerell in III commlsllonl Ind Iny olher lums plYlble which Ire now or mlY from lime 10 lime herelfler be earned by or owing 10 Agenl from Complny reglrdlell whllher luch lums Irl earned II Agenl commlllions or olherwlle. 6. Documlnllllon. Allhl requesl of Complny. Agenl willlxecule Ind deliver 10 Complny luch promissory nOlel. or olher evldencls of Indlblednesl. IS Comp.ny mlY requesl. 10 further documenllhe Imounl oUllllnding, In Iddllion. Agenlagreello axecule. deliver. file. or record any Ind III nolicel. finlncing Ilalemenll. lecurlly agreemenll. Inignmenll or Iny olher documenll which Complny mlY deam neCesslry Dr dlllrlble 10 ellecl. prolecl. or perfecI ils righl of lel,off. security inlerelllnd plramounland prior lien in Ihe com, minion I herelnlbove Inlgned, 9. Anignment. Com piny may IIlign ils rig hIS under Ihll addendum. and Agenl heraby consenlS 10 such Issignmenl. 10. Waiver. Presenlmenl. nolice of dishonor. end prolesl are hereby waived by Ihe Agenl and any surely. guaranlor and en- dorser hereof. 11. Jurildiclion, This Agreemenl is made in Camp Hili. Pennsylvania. and shall be governed by Ihe lawa of Ihe Commonweallh of Pennlylvania. This Agreemenlshall be enforcad in Ihe Common Pleas Court of Cumberland County. Pennsylvania. or ellhe eleclion of Ihe Company. where Ihe Agenl resides. The Agenl. wherever ha may be. lubmils himself 10 Ihe personal jurisdiclion of Ihe courts 01 Pennsylvania. Ills egreed by Ihe Agenllhallhe Insurance Commissioner of Ihe slale in which Ihe Agenl is licensed wilh Ihe Company shall be agenl for valid seNice of process upon ali parties 10 Ih's Agreemenl. IN WITNESS WHEREOF. Ihe undersigned parties have ex uled Ihls Loan Agre menl and NOle 10 be effecllve on Ihe dale firsl above appearing. - Witness IN~L~"70tZ~ /~ ,>;gen 'rfld} j)~ , "",,-9 'Agenrs Souse , (SEAL) (SEAL) ATTEST CORPORATE AGENT Name 01 Corporalion Secrelary BY: Aulhorized Officer Wilness Guaranlor (Individual guaranleeing loan lor Corporale Agenl) Witness Guarantor (Individual guaranleeing loan for Corporale Agenl) ./3/.. (SEAL) (SEAL) "'~".IIIl"""""""'C:" ._al/ll', Ill" ..e'HID @ . iff= 1= ~~ ~..'m'''''' ,',,' """""" , "",. ".. ",,"" Consumers Life Insurance Company December 10, 1990 Mr. Grant F. DuHart 532 Marc Road Millersville, MD 21108 Dear Mr. DuHart: It is always difficult to tell someone contract, but it seems obvious, from activity in your area, that you've opportunity isn't for you. Please accept this letter as notice that your contract will be terminated thirty (30) days from the date of this notice, as per the terms and conditions set forth therein. we're terminating their the lack of Consumers I decided the Consumers' Your commission account as of December 10, 1990, shows an amount of $2200.41 owing to the Company, and I must ask you to pay this amount right away, in accordance with the terms of your contract with us. Please return all Consumers Life Insurance Company supplies as soon as convenient. here at Consumers Life wishes you the very best for the Grant, let's have no hard feelings because the "fit" there. Lit- T~ othy E. Flannigan v1ce President - sal:s 'rEF Ims 12,1,1 Comp 11I1I1l)'.".lSs, 1'0. Ilo~ 26, emllp 1IIII,I'cllllsylr.lIli..Ii,l"I.t'M6 'k"'I~"'"". (717) 7(\H230 '-~'-..,""""..,~_..'" .,..,....._.*'..",.,.,"""'.:..:-.,;..,,';,...~~--~,;...'-:":':.,- , -,;.:.~. _.,:"--,..~.,~~."~_"_,,,,, ""'''''.~~.,''.'d~r '-""'..-,' IU'I.fllf_~'(o ....m... UUI IlICl1Q11t @ ""'-- - -.-.- . ~:III~"",",,,,,," .lhllIllL'j:. rlll.llh.:l.ti U:,IUP Consumers Life Insurance Company December 12, 1990 Mr. Grant F. DuHart 532 Marc Road Millersville, Me 21108 Dear Mr. DuHart: As a cancelled agent with consumers, your debit balance has been referred to me for review. As of 11/30/90, it stands at $2,200.41 While you have some outstanding first-year commissions, there is not enough to completely offset this debit balance. This will also depend upon what the lapse ratios are for your current business. Please contact me immediately at 1-800-933-3018 when you receive this letter, so that we can arrange a suitable payment schedule for the amount due. Thank you. ~l~ Lore Greiman Collections supervisor /lkg 1!0,' CJmp 11I1I8)'.Pass. p.0. 6.'x !6. C.1mp 11111. P<nn;)''''Jnli,li0,'1.0026 Td<phon<: (71 il i6H!3,' -::r <no . :r.::. ...... .~ " ,.... "') ,...., ~ ~< ) ~,;,:) ECKERT SEAMANS CHERIN I< MELLOIT 1',0. HOX 12.&8 IIAIlR15BL'llG. PA 171011 m7lZl7.f>OOO ORIGINAL CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA plaintiff . . v. NO. 94-1827 GRANT F. DUHART and CRYSTAL DUHART, Defendants CIVIL ACTION - LAW PROOF 01' SERVICE The Complaint in this matter was served on both Defendants pursuant to Pa. R. civ. P. 403(1) on or about May 13, 1994, as evidenced by the ordinary mail cover letter attached hereto as Exhibit "A" and by the "refused" notation on the certified mail envelope attached hereto and made a part hereof as Exhibit "B". DATED: October II , 1994 75430 ECK7 ~~~S\BRIH , MELLOTT ~J -'. ~ . "-- ~ - \ ~ Mark D. Bradshaw, Esquire Supreme ct. 1.0. #61975 One South Market square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff -..-,.._....-~.~ ... ..-- &UJI&IIU___.tD. ._..... '0" -.etatO @ Ont 5.11411, MlIrL1 s.,. 8Ilit.lil~,\ 2UMart." S'n'..' !\.:<<tOltl,,'Il.I,I!"H H"rm"urx,/~ ';10$ 1N",I/,.I,,,' il....2Ji.fifO'I hh"lIW"t,' :J:'lJi.ttU'~ May 13, 1994 ECKERT SEAMANS CHERIN & MELLOTT ..~.....I:.~.~'Yal.m'\.. Mr. Grant F. Duhart Ms. Crystal Duhart 15598 Peach Walker Drive Bowie, MD 20716 Re: Consumers Ufe Ins. Co. v. Grant F. Duhan and ~staJ Duhan No. 1827 Civil 1994, Court of Common Pleas of Cumberland County, PA Dear Mr. and Mrs. Duhart: I attempted to serve the enclosed Complaint in this matter upon you by certified mall of April 12, 1994. This mail was returned to me, marked "refused" by the Postal Service. Pursuant to the Pennsylvania Rules of Civil Procedure, a refusal to claim certified mail is essentially tantamount to proper service. I enclosed herewith, by ordinary mail, a copy of the Complaint in this matter for your reference. Should you wish to resolve this matter amicably, please do not hesitate to contact me. Otherwise, you should know that proper service has been effectuated in this matter, and govern yourselves accordingly. '1' Mark D. Bradshaw 11.1",~f'/I'~ MDBIIanh Enclosure ""m~h,'..::: ..lot/,'Il"I;,"., P;,I1,hl,'I,,1,/,I 1f."f'I'" 8,.ff,,'.1 hl,tLIIl,t.-,.I,,',' It<<aR.,,,,,, ,\h.w" r.':r.df.l.".., MARK D. BRADSIlAW 7171237-6033 ;'..;.In.:.::,,,./Il" Exhibit B AU "U'UQ/l(~,tO ._.... 111'11 IIIICYU.. (i) CBRTIrICATB or SBRVICB I hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of civil Procedure, by depositing a copy of the same in the United states Mail, Harrisburg, Pennsylvania, with first-class postage prepaid, as follows: Grant F, Duhart Crystal Duhart 15598 Peach Walker Drive Bowie, MD. 20716 ECKERT SEAMANS CBERIN , MELLOTT lt~ ' ~)> \:;(\ ".-=:, Mark D. vBradshaw, Esquire Supreme ct. I.D. #61975 -, One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance company DATED: October 1L-, 1994 15430 _i, . -....,. " ,'; CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA plaintiff v. NO. 94-1827 GRANT F. DUHART and CRYSTAL DUHART, Defendants CIVIL ACTION - LAW NOTICE To: Grant T. Duhart and Crystal Duhart (Defendants) DATE OF NOTICE: AUgust 5, 1994 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGEMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Court Administrator Cumberland County Courthouse, 4th Floor Carlisle, PA 17013 (717) 240-6200 ADVISO IMPORTANTE A: Grant T. Duhart and Crystal Duhart (Defendants) Fecha Del Aviso: August 5, 1994 USTED ESTA EN REBELDIA PORQUE HA FALLADO DE TOMAR LA ACCION REQUERIDA EN ESTE CASO. A MENOS QUE USTED TOME ACCION DENTRO DE LOS PROXIMOS DIEZ (10) DIAS DE LA FECHA DE ESTE AVISO, SE PUEDE DICTAR UN FALLO EN CONTRA SUYA SIN LLEVARSE A CABO UNA VISTA Y USTED PUEDE PERDER SU PROPIEDAD Y OTROS DERECHOS IMPORTANTES. USTED DEBE LLEVAR ESTE DOCUMENTO INMEDIATAMENTE A r.....,.,....,.~. .. ......,- ~ SU ABOGADO, SI USTED NO TIENE UN ABOGADO 0 NO PUEDE PAGAR UNO, VAYA 0 LLAME LA OFICINA ABAJO INDICADA PARA QUE LE INFORMEN DONDE PUEDE CONSEQUIR AYUDA LEGAL: Court Administrator Cumberland county Courthouse, 4th Floor Carlisle, PA 17013 (717) 240-6200 ECKERT SEAMANS CBERIN , MELLOTT ~ \, \\"- ~J Mark~~W:-;;ire Supreme ct. I.D. #61975 One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers ~ife Insurance Company DATED: August 5, 1994 1I7OS -2- ..:.-.-..-....-,'.......-- . CERTIPICATB OP SERVICE I hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of civil procedure, by depositinq a copy of the same in the united states Mail, Harrisburg, Pennsylvania, with first-class postage prepaid, via certified mail, return receipt requested, as follows: Grant F. Duhart Crystal Duhart 15598 Peach Walker Drive Bowie, MD. 20716 -.) ._1. ECKERT SEAMANS CBERIN , MELLOTT M~~~ Mark D. Bradshaw, Esquire supreme ct. I.D. #61975 One South Market square Buildinq 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance Company DATED: August 5, 1994 11705 -:r en - co >->- "'... -r,., ~w,., w(,,"")C:.~z UZU<<t '::0 -;. l...:r.:e-J ,.....--..... ..,..'ftl" -,... '_(l'""-:; '7~ ~~; ~2 ~~ o"'-L;' 1";) ::oc: G- o- ",. ,..,' 'I , g .... " . i ;/ ~ \:r- . ~ , ~ "- ':J" ~ - ..{ . -.J ,..j 1'=r.: ..."" UJh:";:.t OZv% U:c-..(.)*l h..:z:.:::.;'. OJ..X-: '1 ~:;:~..:?;; ~l~'.;'% ':.!'.~!~~~ "'~ j'_ :>>.:11.. ::> ~O .~ ~ .~ 'N { .~ -<> ~r ::c: a.. &0 N (Y) '.0 C"o.l - Co> <:::> . '- . -' i ~ ...::::r. -0 ~ \..., - - -\./ ~~~ ~,. - , ECKERTSEAMANSCHERIN" MELLOIT 1',O,IlOX 1218 0 RIG IN A L IIAlUUdi~~ 17108 ./ CONSUMERS LIFE INSURANCE IN THE COURT OF COMMON PLEAS COMPANY, . CUMBERLAND COUNTY, PENNSYLVANIA . Plaintiff . . . . v. . NO. 94-1827 . . . GRANT F. DUHART and . . CRYSTAL DUHART, . . Defendants . CIVIL ACTION - LAW . PRAECIPE FOR ENTRY OF DErAULT JUDGMENT TO: Lawrence E. Welker, Prothonotary Enter judgment in favor of the Plaintjff, Consumers T.i~o Insurance Companv. and against Defendant, Grant F. Duhart and Crystal Duhart in the above-captionea matter tor ta1~ure to file an answer to Plaintiff's Complaint. Assess Plaintiff's damages as follows: Amount Claimed: $2,332.95 Plus interest at the rate of $1.15 per day from January 31, 1994, to the date hereof, plus costs. Notice of intent to take default was sent by Plaintiff to Defendants on August 5, 1994. A copy of said notice was also filed with the Court on that date. DATED: October 11-, 1994 ECKERT rEAHANS CBERIN , MELLOTT A r ~'-r~ ~S" Ue ~~ '\':'-:-- ~ Mark D.vBradshaw, Esquire Supreme ct. I.D. #61975 One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff ~ . ~ - CERTIFICATE OF SERVICE I hereby certify that I am this day servinq a copy of the foreqoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of civil Procedure, by depositinq a copy of the same in the United states Mail, Harrisburg, Pennsylvania, with first-class postage prepaid, as follows: Grant F. Duhart Crystal Duhart 15598 Peach Walker Drive Bowie, MD. 20716 ECKERT SEAMANS CBERIN , MELLOTT tacJ~) ,~ Mark D. Bradshaw, Esquire Supreme ct. I.D. #61975 One South Market Square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance Company DATED: October i( , 1994 15136