- 4 - disability of the debtor, depending on the type of policy. Prior to the formation of AFLIC, petitioner employed licensed insurance agents who sold insurance policies underwritten by outside insurance companies. Petitioner was not and never has been licensed under Mississippi law as an insurance agent; it has always employed licensed agents who sold the insurance. Some portion of the premiums from these sales was remitted to petitioner as commissions. After the formation of AFLIC, petitioner offered only AFLIC credit insurance to its customers. Petitioner required all of its branch managers to acquire a license to sell the insurance. If a customer chose to purchase insurance, then the premiums were added to the amount of the loan. Petitioner would then remit the entire premium amount to AFLIC. AFLIC would not pay the licensed branch managers or petitioner commissions or other compensation for selling AFLIC insurance. Petitioner, however, would pay bonuses to its licensed branch managers based on the amount of insurance each manager sold. AFLIC sells credit insurance to debtors of other creditors besides petitioner through agents who are not employees of petitioner. AFLIC pays these other agents sales commissions, usually between 45 and 65 percent of the premium. AFLIC has no employees or offices. It does not advertise. It pays another company to do its tax returns, compute its reserves, and do its actuarial work.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011