United Parcel Service of America - Page 94




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          with the necessary forms upon which the shippers could declare              
          excess value.  The package pickup record was used by petitioner             
          to bill shippers for the EVC's sold.  Petitioner received and               
          deposited EVC income in its corporate accounts.  Thus, assuming             
          that the Shippers Interest Program was insurance, petitioner sold           
          or solicited the putative insurance in 1984.  Petitioner also               
          received, reviewed, defended, and paid claims.  By selling the              
          Shippers Interest policy, collecting the premiums, and adjusting            
          claims without the appropriate licenses, petitioner would                   
          seemingly have been in violation of State statutes prohibiting              
          the sale, collection of premium, and adjustment of claims related           
          to the NUF insurance policy.  It strains credulity to believe               
          that petitioner attempted to avoid the requirements of State                
          statutes by restructuring its excess value activity in a manner             
          that arguably caused petitioner to remain in violation of State             
          statutes.38  Had such a restructuring occurred to avoid violating           
          State law, we believe that a large successful corporation such as           



               37(...continued)                                                       
                    (C) collecting any premium, membership fee,                       
               assessment or other consideration for any policy or                    
               contract of insurance;                                                 
               38Indeed, on the question of whether petitioner's EVC                  
          activity constitutes "insurance", petitioner fails to make any              
          meaningful distinction between the promise to "insure" the first            
          $100 of value in return for a shipping fee, which petitioner                
          continued after Jan. 1, 1984, and the excess value activity.                




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