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professional counseling, and prompt and skillful service
essential to the creation and maintenance of successful multiple-
line companies and agencies.”
Section I of the agreement, Mutual Conditions and Duties,
provides that petitioner was an independent contractor of State
Farm. As a State Farm agent, petitioner agreed to write policies
exclusively for State Farm, its affiliates, and government and
industry groups. Paragraph C, section I of the agreement states
that State Farm “will furnish you, without charge, manuals,
forms, records, and such other materials and supplies as we may
deem advisable to provide. All such property furnished by us
shall remain the property of the Companies [State Farm].”
Further, State Farm considered any and all information regarding
policyholders to be its property, as follows:
D. Information regarding names, addresses, and
ages of policyholders of the Companies; the
description and location of insured property;
and expiration or renewal dates of State Farm
policies acquired or coming into your
possession during the effective period of
this Agreement, or any prior Agreement,
except information and records of
policyholders insured by the Companies
pursuant to any governmental or insurance
industry plan or facility, are trade secrets
wholly owned by the Companies. All forms and
other materials, whether furnished by State
Farm or purchased by you, upon which this
information is recorded shall be the sole and
exclusive property of the Companies.
Essentially, any data relating to a policyholder recorded by an
agent on any paper was the property of State Farm.
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Last modified: May 25, 2011