Loading...
HomeMy WebLinkAbout94-01831 ~ 1 V) .'" A '" \,.; :.J ~ ~ '" c ~ J - ('{) 00 -I I I -=:T. I 0-1 I ~ ~ '9 i . \\1} a; "..".. ") "" ~ "'I- ~ . ;: ~-s :C ~ .~ wc'-'rl% ~ c... ~EO_t en ~:=~~ ~ ... :J ,~. .~.,..- -0 N .~ " .,{ i/'I .~ .... '._J..... ~ ..... ~~I% 1'\\ .u,~}~ ~ ~ I'\') - ::xP~ - >-", ..... . a:: ....... ~ ~(j) -.;l'- .... 0 C\~ ~ ..... ~ '- ,; . ; , Ft I;F}':l'SF,\MM.;~Cllr:lUN '" MFO'LLUR1T I GINA L ' l'OI"{\\::.."I ;1^".l'I~llt.W~, 1',\ .::':''-I'i I':t~l ~'.r:-",:,)(~ CONSUMERS LIFE INSURANCE COMPANY, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 14- /83 ( ~ ...j~ THOMAS F. SMITH, SR. and SANDRA L. SMITH, Defendants . . . : CIVIL ACTION - LAW NOTICB 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 enterinq a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth aqainst 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 riqhts 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 I C I A LE RAN DEMANDADO A USTED EN LA CORTE. Si usted quiere defenderse de estas demandas expuestas en las paqinas 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 peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME 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 "'__'~' ..._-~..,~. _,.o,~,.__,._ CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. NO, THOMAS F. SMITH, SR. and SANDRA L. SMITH, 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 Thomas F. Smith, Sr. (hereinafter "Smith"), and his wife Sandra L. Smith, who reside, upon information and belief, at 802 Saluda Road, Chester, SC. 29706. 3. Pursuant to a General Agent's Contract dated April 12, 1991 (hereinafter "Contract"), Smith was appointed a general agent 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 smith 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", 111.] 6. On September 15, 1992, Consumers exercised its option to terminate smith's Contract pursuant to paragraph 22 thereof and his Loan Agreement pursuant to paragraph 4 thereof. [See Exhibit "A", I 22; See also Exhibit "B", I 4.] A true and correct copy of the termination notice is attached hereto and made a part hereof as Exhibit "C". -2- >..ii:.' 7. Between the effective date of the contract and of the Loan Agreement and the termination dates thereof, Consumers advanced substantial sums to Smith. 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 "A", ! 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.] 11. As of January 31, 1994 the balance owing under Defendant's Loan Agreement, with interest, totaled $9,506.60. Interest continues to accrue at the rate of $4.69 per day. -3- ~_.__.. 12. Despite written demand, the amount owinq remains unutistiecS. 13. Defendants have committed a material breach of the terms of the Loan Aqreement by failinq to repay amounts loaned to Smith upon his termination, as aqreed to in the Loan Agreement and Aqents' 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 Thomas F. Smith, Sr. and Sandra L. smith, jointly and severally, in the amount of $9,506.60 as set forth more fully hereinabove, toqether with interest at the rate of $4.69 per day from January 31, 1994, -4- attorney f..., coats of suit, and such other further relief as this Court may deem appropriate. BCltERT 8 , MELLOTT /.t ~~ED: 4v:t rJ, (qC(y James J. Kutz, Esqu re Supreme ct. I.D. #21589 Mark D. Bradshaw, Esquire Supreme ct. I.D. #61975 One South Market Square Building 213 Market street Harrisburq, 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.S.A. 54904 relating to unsworn verification to authorities. C. Robertson dent DATE: 62011 J:vhlhlt .6. ..'lUIl........"".'-O ,_,....... 10" ..~..~Itt @ !-") () CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXECUllVE OFFICES: 1200 Camp HIIIly.P_. Camp HI. Pennaytvril 170t 1 GENERAL AGENTS CONTRACT CONSUMERS UFE INSURANCE COMPANY (referred to as the "Company") and, Thomas F. Smith, Sr. General Agent (referred to as the "General Agent"), who hu ofOces at _ P.O. Box 70B Rock Hill. SC 20731-670B hereby agrees as follows: I. The Company hereby appoints the General Agent with authority and power, subject to the terms, conditions and limits herein set forth, for the sollcitatlon ofappllcatlons for Insurance ana annuities Issued by the Company. This appointment Is Ilmlted to the following territory, but Is not exclusive In such territory: N/A ThIs General Agent appointment shall not give the General Agent exclusive rights; the Company reserves the right to appoint other General Agents within said territory. ThIs Agreement supersedes any and all contracts, stipulations and agreements. written or oral, existing prior to its effoQlve date as to all new business transacted on and after such date. No modification of this Agreement nor waiver of Its provisions shall be valid unless ills In writing and signed by the General Agent and an OfOcer of the Company. The entire Agreement between Consumers Ufe Insurance Company and the General Agent Includes this Agreement In its entirety, Commission Schedule 70% Pro 1 auached hereto and addendum Nt A" or riders N/A Thls Agreement shall become effective as of the lRth day of March . I~ when signed by an authorized Individual for the General Agent and an authorized Officer for the Company. GXN~ .... CONSUMERS LIFE INSURANCE COMPANY By: CONSUMERS IFE INSURAN E COMPANY OF NORTH CAR INA By: Y. . "- ") /) 2. The General Asent, subject to the approval In each cue and under the rules and resulatlona of the ':ompilll>', shall have authority to recommend ascntlto the Company. The General Alent aarccsto pay asentl'lIcense rees charsed by the Insurance Department or the State or States In which the General Asent Is authorlud to operate ror all Alents appointed by the General Asent. . 3. The General Alent In submlltlns appllcatlona ror asents' appolntments,shall use the printed or written rorms or ascnts' contracts supplied by the Company which shall be executed In triplicate and forwarded to the Company for approval. The Company reserves the nabt at any time to cancel or rescind the appointment or Iny such asent for any reason whatsoever. 4. (a) Unless otherwise provided, all premiums on polleles (or contram) written by or throuab the General Alent, after the' first premium thereon, shall be collected by the Company. (b) The General Asent shall be rnponalble to the Company ror all business produced by Itselr or Its asents, employees or other persona under IU supervision. (c) The General Asent aarccs to Idemnlry and save the Company harmlesa from any and all expenses, costs, ClUles or action and damases resultlns rrom and In consequence or unauthorized ICtS or translctlona by II. Its asents, employees or other persona under IIssupervlslon. 5. (a) The General Alent It his own expense, shall equip and maintain adequate omce or omces, ror the transection or 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 Asent application rorms, specimen policy forms, toscther with any other printed mlterlallt, In Its judsment. may deem advisable. (b) The General Asent shall keep a true and correct record and keep books of ac:counU on all transactions arlslns out or this contract and shall preserve and hold all documents. correspondence Ind records which come Into Its possession or under Its control relltlns to the rorm or policies which It Is entitled to solicit, sell and/or Issue ror the Company. The Company as orten as II so desires may make examlnltlon or all or the books and records of the General Alent as II may deem necessary and the General Asent shall do a1lthlnp necessary to cooperate and assist the Company In maklns such examination. (c) In the event that this contract shall be terminated ror any reason, the General Asent 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 of the General Asent Insorar as they relate to the business of the Company, to enable the Company to make copies thereof. 6. (I) The General Asent shall solicit applications ror the Insurance and annuities herein mentioned, and use Its best errorts to promote the business and welrare or the Company. The Company shall prescribe the rorm, plan and character or the policy or policies for which applications may be sollclled, and may. from time to time, chanse, or discontinue any plan, rorm or character or policy or policies, or contracts now or hereafter In use. The Company shall prescribe the premium rate and policy fees, Ir any. ror such policy or policies, or contracts and may chanse, decrease or Increase the said rates. (b) The General Asent shall have no power to make or alter the policy or contract rorms or conditions contained therein, or waive any or the provisions or conditions thereor, or modlry, alter or waive any of the Company's rates. 7. (a) The General Asent shall endeavor to promote the Interests or the Company as contemplated by this contract and shall so conduct Itselr as not to arrect adversely the business, sood standlns or reputation or itself or or the Company. (b) The General Asent aarees that It will not nor will II permit any misrepresentation, m1sleadlns statement or Incomplete comparisons to be made by Itselr, Its asents or employees. orally or by any circulars, advertlslns matter or literature, which would be detrimental to the Interests of the Company or In violation of any or the laws, rules or resulatlons or any Federal. state or City Department or Bureau havlns Jurisdiction thereor, nor will It violate or permit the violation or any or the rules and resulations or the Company. (c) Unless the prior written authorization or the Company has been obtained, General Asent shall not use. permit or cause the Company's name to be used In any advertisement. circular or lllerature. 8. The General Asent shall deliver to the Company such proof or loss or other evidence of claim as Is presented and med by the Insured or his beneficiary, or any other claimant to the Company, Immediately upon the receipt thereor. , 9: The ~neral Ascnt,Jts ascnts and employees, within the territory prescribed. shall be free to exercise their own sood judsment as to the persons rrom whom they will solicit Insurance contracts and the time and place ofsollcllation. but the Company may rrom time to time prescribe the rules and resulatlon res pectins the conduct or the business covered thereby, which rules and regulation shall be conrormed to by the General Asent, Its asents and Its employees. Nothlns contained In this contract shall be construed to create the relationship or employer and employee between the Company and the General Asent or Its asents, or Its employees, The General Asentls hereby constituted and shall In all respects continue to be an Independent contractor. () () 10. Transmittal of premiums.. deposits or other funds received or paid to General Agent for the benent of the Company, or In the Company's name, shall be governed by the following paragraph: (a) The Agency shall remit atld transmit to the Company dlreclly and promptly upon receipt, all such funds, grOll, without deduction. . II. The General Agent shall fumlsh and keep In force a Bond of Indemnlly execuled by a corporate surety satisfactory 10 the Company, In such form and In such amount as Ihe Company may require, condllloned for the faithful performance of this contract and shall Increase Ihe amount of said bond as Ihe 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 that he wUl not, dlreclly or Indlreclly, or In any manner whalsoever, payor allow, or offer 10 payor allow, any rebale of the General Agenl 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 cancellallon of any policy or contract by reason of mlJrepresentatlon or mlJundentandlng, other legal cause, or, by mutual agreement of Company and Insured, that all cornmlalons paid to the General Agent on such poUcles or contracts shall be refunded to the Company and the General Agent shall have no rlaht or claim to any commissions on such policies or contracts or damages by reason of any such rnclulons or cancellallons. (c) The General Agent shall refund ratably to the Company, on business heretofore or hereaner written, commissions on cancelled policies at the same rale at which such commissions were originally paid. If the General Agent has succeeded to and carries on an agency formerly conducted by another, the General Agent shall pay return commissions on return premiums of such bwlness as was written by Ihe predecessor agency or agents In the same manner and to the lime extent as upon the General Agent's own business, unless the parlles hereto have speclOcally otherwise agreed In wrlllng. In case of Impounding or holding In abeyance of premiums as a resull of any court order or rule of any Insurance Department or olher lawful authority, the commissions shall remain in abeyance In the same manner and to the lime extent as the premiums upon which such commissions are payable. 13. No rlaht or Interest arising by this Agreement shall be assigned by the General Agent to any other penon or corporallon except by written consent of the Company. 14. Forbearance, failure or neglect on the part of the Company to enforce any or all of the provisions of this contract shall not be conslrued as a waiver of estoppel of any of the rights or privileges of Ihe 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 c:lrcumstance. I S. The General Agent agrees Ihat It will nol knowingly Issue or deliver, or permltlhe Issuance or delivery of any policies of Insurance unless Ihe applicant Is In sound health, free from Impairment and Innrmity and Is an Insurable risk without special condlllons or rating from. an underwrlllng slandpolnt wilhout the prior written consent of the Company In each Inslance. 11 ihall cause each of Its agenls and employees 10 subscribe to and enforce the terms hereof and of all other provisions of Ihls Agreement perlalnlng to General Agents, agenls and employees. 16. The General Agent agrees that It will abide by all of the laws. rules and regulallons of any Federal, State and City government, department or bureau having jurlsdlcllon or supervision over insurance and the conduct of such bwlness In any phases thereof. and failure to comply with any of said laws. rules or regulallons shall conslltute a violallon and breach of this contract. Suspension or cancellallon of the license of Ihe General Agent or of one of the principals, partners or principal orncers thereof by any such governmental aulhorllles. shall be cawe for immedlale termlnallon of Ihls Agreement. 17. ThIs conlract shall be void should the Company cease to do business involuntarily in Ihe territory embraced In the Contract. The conlract shall also become void and Ineffective should the General Agent be unable to perform under Its lerms and conditions by reason of the cancellallon or Ihe denial of a license 10 It as an agency by an Insurance department having jurisdiction over the territory embraced in this contract. Ihe General Agent or Ihe licensed principals (or parlnen) thereof. If the General Agent shall fall to comply or perform any of the terms or covenanlS of this Agreement. the Company shall give to Ihe General Agent, ten days written nollce to remedy the alleged non-compllance and upon failure to do so wllhln the said len days, this contract, at Ihe 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 thaI the Company shall cease issuing any form or forms of the conlracts or policies herein mentioned. then Ihls conlract shall be void as to such form or forms of contracts or policies thatlhe Company may be obliged to dlsconllnue. Should any courl of competent jurlsdlcllon make any decision which would prevent the Company from Issuing any form or policy herein mentioned. then the contract shall be void as to Ihat parllcular form or forms of contracls or policies. The provisions of this paragraph shall apply only to Ihe State or territory Involved. 19. The General Agent shall have no power or authority olher Ihan as specified In this contracl unless specllically granted by the Company In writing. 20. The General Agent agrees that all applications for contracts or policies solicited by it shall be forwarded to Ihe ') '') Company I'iomptly together with any other underwriting forms or Information relating to the applicant for the policy whether oromptly submllled with the application or otherwise obtained. 21. (a) The Company agrees to pay to the General Agent during the contlnuince of this agreement and the General Agent agrees to accept as full compensation for all the services to be rendered by IUelf, III agenll and omployees to the Company as set forth In this contract (InclUJlve of all costs and expenses of the General Asent, III agonll and employees), commissions based upon the premiums collected and paid to the Company on forms of contracts or policies, herein mentioned and sold by the Agency as set forlh In the Rider, "Schedule of Commissions", hereto attached. (b) The Company shall have the right to offset against any compensation due the General Agont, any debts now due or which may become due from the General Agent at any time, and such obligations shall be a Orllllen against compensation now or hereafter due the General Asent under this Agreement J.J.. (a) This contract1hall continue In force unlell the General Asent violates any of the terms or breaches any of the covenants herein provided for, or unless otherwise tonnlnated. Either party may tennlnato this contract by s1vlns thirty (30) days notice In writlns to the other. Should this contract be tennlnated by either party, renewal commllsloDS tfpay. a,ble, shall bC govemed by separate agreement hereto attached. 23. If the General Asent shall at any time Induce any policyholder of the Company to terminate 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 terminate. 24. (a) The General Agent will be paid commissions In accordance with the Commission Schedule which Is made a pi . of this Agreement, subject to all of the provisions of this Agreement, on premiums paid to the Company In cuh on policies Issued by the Company upon applications procured by the General Agent and/or Asenll. (b) The Commission Schedule, which is made a part of this Agreement, may be changed at any time, but unly with respect to applications received by the Company after such change. (c) U a policy, Issued on any applications submitted by the General Agent and/or his Asenls, where the plemium payment exceeds forty.five (45) days past the expiration of the due date, the General Agent shall have no fcr.heri .terest 01 any kind In such policy If it is reinstated at any later datc, unless the General Agent lflId/or Asent of the General Agent effects the reinstatements. (d) If a policy Is changed or converted to a new policy on an application procured by the Genr.ral Agent and/or his Agents or, If a new policy is issued and an existing policy on the same life Is terminated within six (6) months ',efore or after the Issue of the new policy. commissions payable on the new policy shall be detennined by our Rules and Regulations current at the time of such change or new issue. (e) Commissions for plans which are not listed In the Commission Srhedule will be quoted in accordance with our Rules and Regulations. 25. In the event of the termination of this Agreement (for any reason, Including death or disability), the General Asent or his legal represenlatlve shall continue to receive commissions In accordance with the Commission Schedule to the extent that such commissions shall be receivable from premiums on policies through the 10th year provided a minimum of Sloo.oo renewal commission Is due and payable within a twelve (12) month period; however, If such termlnatlon.occurs within one (1) year from the date of this Agreement. the General Agent or his Jegalrepresentatlve shall continue to receive only the first year commissions as provided for In the Commission Schedule. 26. ()olrinr the continuance of this Agreement 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 the event ofthe tenninatlon 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. Uthe General Agent is a Corporation, Partnership or other entity, all prin- cipals who art "censed with the Company shall be jointly and severally liable to the Company to the same extent as the General Agenl GA82C Exhibit B AU ".,.,.....~'CU, ,....... .011 MCfQ.. (i) n f) ~ON&UMERa = CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA And CONSUMERS LIFE INSURANCE COMPANY EXECunVE OFFICES: 1200 CI/llP HUI By.p.... Camp Hill. Ponnaylvanlo 17011 AGENrS LOAN AGREEMENT AND NOTE THIS AGREEMENT CREATES A SECURITY INTEREST AND LIEN ON AGENrS COMMISSIONS THIS AGREEMENT is enlered into on the 18th dey 01 March .19 Ql by end botwoon CONSUMERS LIFE INSURANCE COMPANY or CONSUMERS LIFE INSURANCE COMPANY OF NORTH CAROLINA. Thomas F. SMith Camp Hill. Ponnsylyania ("Company"). and (and spouse IAgenl) or guarantor il so o.eculodl. WHEREAS. Agont has in lorce wIth Company anAgont's Contract which aUlhorizesAgent to procure applications lor Ii Ie and annuilY insurance which provides for payment of scheduled commissions 85 premiums are paid to the Company on policies issued pursuant to such applications (Ago nt's Conlract"I: and WHEREAS. Agent desires 10 recoiyo cash loans to bo secured by such commissions scheduled in the Agent's Contracl; NOW. THEREFORE. Company agroes 10 lend to Agent. and Agent promises 10 repay to Company. Ihe sums described in this Loan Agroemenl and NOle subject to tho lorms and conditions contained herein: 1. Amount 01 Loens. SubjecI to Ihe specific understanding end agreement that compensation 01 the Agenl by the Company is solely by commissions as spocilied in the Agent's Contracl.lhe Company hereby agrees to lend Ihe undersigned agent an amount not to e.ceed 51.0.00.00 per case. Subject to such ma.imum limitations. the amount 01 such loans shall be determined as lollows: 1.1 The amount 01 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 40/36 based on the planned periodic premium upto and includ- ing tar.get premium. 1.2 The percenlagelor adyances shown aboye may be changed by the Company by wrinen notice. Any change mede will apply to subsequent edyances. 1.3 From any loans hereunder. there will be deductions laken lor the commission colleterallost on eccount on first year lapses. applications withdrawn. and policies returned to Company as "not.taken:' 1.4 This Loan Agreement and NOle shall not apply 10 insurance wrinen on the life olthe Agent or any member of Agent's immediate family. 2, Nature 0' 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 the Agent shall ,emain 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 hereafter accruing to Agent from Company or from any other source to secure Agent's performance hereunder and the repayment 01 all sums due from Agent to Company as a result 01 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 written 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 termination, 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 to Company. or order, such Principal Amount. with interest computed on tho basis . () n ala 3BO dav V'" lor tha aclull numbe. ~f dlV~ In elch Interlll pe,lod on the unplld prmclpll blllnce (Including Inv Ind all accrued Intarelt Ihal mav Irom lime 10 time be Idded to Ihe principal blllnee hereot) Irom Ihe dlte of thll Loan Agreement and NOle unlll plld. II tha rete 011 Wl6 po, month on the unplld ballnce owing. PJlncipll end Inlerelt Ihlll be paylbll II the olllce ollhe Company. Clmp Hill. Pannlvlvanla. or alluch olher pllcl allhl nota holder mav dellgnete. Upon the lallure 01 the Agent to perform env obllglllon under, thll Agreement, Ihe Complnv mlV emplov one ormore IItOmeVllo enforce ill rightl Ind remedlll. Ind Agent hereby agreel to plV realon. eble altorneVllell plul III olhlr ,ellonlble ..penlellncurred bV Ihe Complnv In elerclling,anv 01111 ,Ighll and ,emediel hereunder. Complnv Ihlll hive no obllgltlon to seek replvment or collect Inv 10lnl from Inv other perlon or entltv belore collecting the lOin Irom Ihl Aglnl. Dllchlrge ollnv othe, pellon or enllty tram liability for Iloln shill not Iffect Agenl'sllsbllltv under thll Agenl'l LOin Agree- ment Ind NOle. B. RighI of Preplvment. Agent mlV preplV Ihe principal Imounl aUlltanding in whole adn psrt. No prepayment penlllV Ihlll be chlrged. 7. Security end Sel,Off. To secure the replvment to Compenv 01 all Imaunta outstlndlng end the performance at all alhe, obllgatlonl at Agenlla Company. whether now exllling or her..her arising. Agent Icknowledges Ind Igreel thll Camplny may let.off anv end IlIexllllng or luture emounll Igllnlt anv elrned cammlsllons or olher sums pavablela Agenl bV Company. To lurther secure luch repaymenl. Agenl hereby eselgnl end glints to Complnv I lecurity Intereet In III commlseians Ind Iny othlr luml plYlble which Ire now or may Irom time 10 time hlrellter be elrned by 0' owing to Agent Irom Complny reglrdlell whlthe, luch suml Ire eerned II Agent commllllonl 0' olhlrwlle. 8. Documenlltlon. Allhl requell of Complny. Agenl will execule end deliver 10 Company luch pramllsory nolll. 0' other evldencel of Indeblednesl, II Company mlY requesl. to lurther documenllhe Imaunl autltlnding, In eddlllon. Agent egreel to execule. dellver.lile. or record env and ell nallclI. linanclng ItetamanlS. securily agreemenls. essignments or any other documenta which Company may daam necellary or deslllblalo effecl. protect. or perfacl itl right 01 leI-off. security interast and parsmounland prior lien In tha com, millions tieralnabove IIslgned. 9. Asslgnmenl. Company may assign its rig hIS under this addendum. and Agenl heraby consenls to such Blslgnmant. 10. Waiver. Presentment. notice of dishonor. snd prolesl are hereby waived by the Agent and any surety. guarenlor and en. dOllar heraol. 11. Jurlsdicllon. This Agreemanlls msda in Camp HIli. Pennsylvania. and shall be govarned by Ihe laws of the Commonweallh of Pennsylvania. This Agreamanl shall be enlorced in Ihe Common Pleas Court of Cumberland County, Pennsylvania. or al the eleclion of the Company. where the Agent ,esldes. The Agent. wherever he may be. submits himself to Ihe pellonaljurlsdlctlon of Iha courts of Pennsvlvanla. Ills agraed bV tha Agenllhal the Insurance Commissioner of the slale In which the Agent is licensed wilh Ihe Compeny shell be agenllor valid selVlce 01 process upon ell partie. to Ihl. Agreement. IN WITNESS WHEREOF. Ihe undersigned psrtle. hsve execuled this Loan Agreement Ind Nota 10 be affective on Ihe dlte first above appeerlng. [J CONSUMERS LIFE IN ja' CONSUMERS LIFE IN BY: Authorized y Y OF NORTH CAROLINA (SEAL) (SEAL) Witnass Agent'. Spouse ATTEST CORPORATE AGENT Nlma of Corporalion Secralary BY: AUlhorized Officer (SEAL) (SEAL) Wilness Guarantor (Individual guaranteeing loan for Corporale Agant) Wilna.. Guarantor (Individual guaranteaing loan for Corporata Agenl) 6/3/66 .. .." '.. o. f'tt.~~~~',TJ-",!'-,_;:r;,;1,-:. '~-. -', ,..,_,_".....;........,.'-..."""".t..., l;r"'-"",::~, ~-~..... ~ ~......",.........,..", '_fir." "'" ..CtQU' @ "1 ~-~- _I _. I ~ ~"""'" ,,' ,'"' ....""""". """,,, ",' .. "..", -j Consumers Life Insurance Company of North Carolina september 15, 1992 Thomas F. Smith 802 Saluda Road Chester, sc 29706 Dear Thomas, . , In accordance with the insurance regulation of South CarOlina, we hereby notify you we are terminatinq your license to solicit insurance in that state on behalf of Consumers Life Insurance Company of North Carolina. Please return your license or a notarized affadavit statinq the license is lost in the enclosed envelope. We ask that you respond within five (5) days so that we may act in compliance with the regulations of the South carolina Insurance Department. This will have no effect on your appointment with Peoples Security Life Insurance Company nor any other licenses with Consumers Life Marketing corporation. If you should have any questions, please contact us at (800) 933- 3018, extension 6315. sincerely, iJ.~~ Ed smith Manager - Agency ES/sc 1200 ump Hili By.Pass. Po. Box 26. ump Hili. Pennsyl\'anla 17001.0026 Telephone: 17171761.4230 ~ ~. ,.&:~ iF ~ . " . "' -. ~ - '. ~ , <"') ...., - .... e!:: ,:>, ,,"' . . ECKERTSEAMANSCHERIN &. MELLOIT 1',0. bOX 12... 11^IOOS8URC. rA 17108 m71 737-6000 . . ORIGINAL OE CONSUMERS LIFE INSURANCE . IN THE COURT OF COMMON PLEAS . COMPANY, . CUMBERLAND COUNTY, PENNSYLVANIA . plaintiff . . . . v. . NO. 94-1831 . . . THOMAS F. SMITH, SR. and . . SANDRA L. SMITH, . . Defendants . CIVIL ACTION - LAW . PROOP OP SERVICE The Complaint in this matter was served on both Defendants pursuant to Pa. R. civ. p, 403 on April 15, 1994, as evidenced by the certified mail receipt attached hereto as Exhibit "A". DATED: October 1L-, 1994 15439 :}1 X~J'RZ._._. 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 Exhibit A IlUIIAflU.....__'CO, __..... "'01 IllIC1QUt @ . " (i ..=i.::.:_londIoI2iot__.. .1 ...o.wlIh ",,~"t~\~' 'I'. CompItOo_a.ond40ab. . ..."., loIloWIna"'""-.Uor.....xtr...,j ~ ,. ,-'yOUr..... ond _.. on... ....... OlIN.' lorm 00 - .- CMl liel:' ,",." ';'Vii,'."! f;';,;.,:11:'~r " -mum 1hII AnI to you. . ~T ., " -11 '~/"f.;~~:S'h~'i ~~tz8Chthllfonntolhl'frontOflhelMDpltce.oronlhebaQH'ptCI :. :';i1~ Add'.....'. gu,...' \ :' am;=':;~~~:I~'~~~~~'~'~ lQf:'o'" D . I." ,.J1."ThoRotum/lOOtllll..""",IO.........._W.._ondlho_ . ,'l'..;"~.~.,,,,,........,.,,,,,, '^ .:~" {&lo:""diIvw.d.A..IbH::.~._\.. \." . c. .. .. ", ..-I~:,..,",...t,.",' Coneult ,."or.,... '''I, '.'I~~AnIcIeAdd-'O: ' ..; ",'.':s'1t' 411.. AtllcIe N",,!.Ile''!;:}J'(:\~1.Ur<lim:'i~ . ..' ~~"'F'~{'~th sr..','....:;/. .PB32B61..;S1l:!~r.Ii'~~~1 'i'~Lf;:'th'., . ....~.. ~"=4~..fd1~11:..~~.~t ' fJ~~~~+~if~SC"'2973i~708> 11".. 0 ~::.-:~~*;g~~~R~P,!~!'J~ ':I, .":;if~~:,~; , . 7,. D.lO ol,D~~rv ..Vi,..-~.\1t. ~l\"6lti'I!, ,,',. t"'" '. . .... IMi~,g. . .". ...^ . ' . ,,,. ..,., "~"1O:;' >- I.....' ... 0' Add ......Add....C l~tod'J ~nd "~Idl "::;;':'~.;'%\f:~'1 8. Ign.tur.(AglIIll ',' ':":(, ':.'t~;-':.~~:ff.;:,i~(\ "I !is . . ; .: ..',,'... ." ........,...\::;.. ,.,.."l.,m.,__~., "\ ~ ~Form . Docemlle, 1881 *Il.I.CIPO:l--.714 DOM~ ~~~~"~~~~;;;';; II.!! .,,~ ".' . .' .",'. :' .,'.v\"J:;::;"J'":.;;,, \', l:~....~,-,...._~. '.' ",_.~.:t ~ '-,"..l':.:.., ..;..~~_ _. .:. '" t:CXan Ct)~r:.'" ". ~~it.'" l~"~.r",,,:=,~,,, ~ '.' ' '''':;. '.. ~..-t.:... . -;.~' APR 18 199.1 .1..J.'r"'; , 'too . .3~,.!". -.. ~...' '. CERTIPICATE or 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, as follows: Thomas F. Smith, Sr. Sandra L. smith P.O. Box 708 Rock Hill, SC 29731-6708 ECKERT SEAMANS CHERIN , MELLOTT k J&~\~< -- .-.... Mar 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: october~, 1994 154]8 CONSUMERS LIFE INSURANCE IN THE COURT OF COMMON PLEAS COMPANY, . CUMBERLAND COUNTY, PENNSYLVANIA . plaintiff . . v. . NO. 94-1831 . . . THOMAS F. SMITH, SR. and . . SANDRA L. SMITH, . . Defendants : CIVIL ACTION - LAW NOTICE To: Thomas F. Smith, Sr. and Sandra L. smith (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: Thomas F. Smith, Sr. and Sandra L. Smith (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 -/ 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 ECKE T SEAMANS CHRRIN , MELLOTT Iv; Mark . Bradshaw, Esquire supreme ct. I.D. #61975 One South Market square Buildinq 213 Market Street Harrisburq, PA 17101 (717) 237-6000 Attorneys for Plaintiff Consumers Life Insurance company DATED: August 5, 1994 11101 -2- CBRTIPICATE or 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, Harrisburq, Pennsylvania, with first-class postage prepaid, via certified mail, return receipt requested, as follows: Thomas F. smith, Sr. Sandra L. Smith P.o. Box 708 Rock Hill, SC 29731-6708 ECKERT SEAMANS CHERIN , MELLOTT ~~~ 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 117011 "::r en - ::I:: ~ .... :zo ...... "".- <", wr; =i:' U2"'-';Z: 4: CJe.......; h..T"O:. ~- ~;~ :~ ~ u.i:~ 1.'-' ;;~~~ '" C;U a:> ..., => -=< ,..! ~ ~V") ~~ .~ t: "-i -..J , ",'-\-1 -:.., f~~j "::>" en - - "'- r.,,_ ~:t- .-(1.. h'~_~"l ...:~ ~ ;':;' ~ ..~ (:J -, "-t ~:'-; :~~ ~'~' I ,jl-") -0" J: i;.::;~f:~ 1,..:- ':.1''1. ::i ~.....: ,.. N :-r) !'.~"::'I l'.J '- C5 I\~ .......... ~ ~ \ ~ ~ .-j ~ ~ - ECKERT SEAMANS CHERlN &, MELLOTT IIA~;~~~.~17108 0 RIG I N A L ~ CONSUMERS LIFE INSURANCE COMPANY, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA plaintiff v. NO. 94-1831 THOMAS F. SMITH, SR. and SANDRA L. SMITH, Defendants CIVIL ACTION - LAW , t PRABCIPB rOR ENTRY or DBPAULT JUDGMENT ECKER1 s~ ~~RIN , MELLOTT it\!j\~\\) \'" - ----, Mark D: Bradshaw, Esquire Supreme ct. I.D. #61975 One South Market square Building 213 Market Street Harrisburg, PA 17101 (717) 237-6000 TO: Lawrence E. Welker, Prothonotary Enter judgment in favor of the Plaintiff, Consumers Life Insurance company, and against Defendants Thomas F. smith, Sr. and Sandra L. smith in the above-captioned matter for failure to file an answer to Plaintiff's Complaint. Assess Plaintiff's damages as follows: Amount Claimed: $9,506.60 Plus interest at the rate of $4.69 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~, 1994 75133 Attorneys for Plaintiff - CBRTIPICATB OP SERVICB I hereby certify that I am this day serving a copy of the foregoinq 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: Thomas F. Smith, Sr. Sandra L. Smith P.O. Box 708 Rock Hill, SC 29731-6708 ECKERT SEAMANS CHERIN , MELLOTT J!J1~ ~~., -- 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 11-, 1994 15133 -~--