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program, as proposed to be restructured, might violate State
insurance regulations. No contemporaneously prepared documentary
evidence was presented to indicate that petitioner had such
concerns or to indicate that petitioner analyzed the alleged
problem and considered the steps necessary to deal with its
alleged concerns.30 Mr. Johnson's testimony on cross-examination
is revealing:
Q. Your concern about possible state regulation, you
never discussed this with the [sic] anybody at the ICC, did
you?
A. I did not. No.
Q. And you're not aware of anybody at UPS ever
discussing it with anybody at the ICC.
A. I'm not aware of it.
30During 1983, Mr. Corde of Frank B. Hall inquired about how
other Hall clients handled cargo coverage in connection with
analyzing the proposed UPS declared value program. Mr. Doug
Brown of Hall prepared an internal memorandum to Mr. Corde dated
Mar. 2, 1983, outlining the arrangements of other companies which
were Hall clients. The concluding paragraph of Mr. Brown's
memorandum states:
In my discussions with Frank B. Hall people and
underwriters, the opinion with regard to the legality
of selling shippers interest when in fact neither
client is a licensed insurance agent was that provided
the carrier is simply requesting an acceptance or
declination from the shipper for the insurance does not
put them in a brokerage or agency position. I find
this questionable especially since both clients that I
reviewed are doing very little domestic Shippers
Interest coverage, consequently, the problem may not
have arisen.
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