Eberl's Claim Service, Inc. - Page 6




                                         -6-                                          
          and the insurance companies.  Petitioner's supervisors did not              
          direct the day-to-day work of its independent claims adjusters or           
          review a significant number of the claims files handled by                  
          petitioner's independent adjusters.                                         
               Petitioner's claims adjusters usually returned the claim               
          file to the insurance company when they finished adjusting a                
          claim.  They did not send the file to petitioner.  The adjuster             
          completed a billing sheet showing how much petitioner was to                
          receive for the claim.  The claims adjuster gave the billing                
          sheet to the insurance company and sent a copy to petitioner.               
               After the insurance companies received a completed claim               
          file, they issued one check to petitioner and one to the                    
          policyholder.  Petitioner usually paid its adjusters 2 weeks                
          after it received payments from the insurance companies.                    
               3.   Eberl's Duties                                                    
               Eberl has always made all of petitioner's business decisions           
          and supervised or performed substantially all of its managerial             
          functions, except accounting.  He was solely responsible for                
          marketing petitioner's services to insurance companies and                  
          negotiating petitioner's contracts with insurance companies and             
          individual claims adjusters.                                                
               From 1990 to 1994, Eberl solicited business from six to                
          eight insurance companies, and petitioner did work for about                
          four. Eberl spent a substantial amount of time maintaining                  
          relationships with his insurance company contacts because                   




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Last modified: May 25, 2011