- 3 - required by the State of Washington.2 He continued to sign all of the Edwards agency’s payroll checks, examined the books and records of the business regularly, and paid bills for business items such as paper and stamps. Mr. Edwards also retained the power to fire Ms. Payne, and he reviewed the “folios”, which reported the Edwards agency’s commission income from premium renewals. At no time was petitioner Joan E. Edwards (Mrs. Edwards) involved in the business operation of the Edwards agency, nor did she hold an insurance license. In 2003, the Edwards agency maintained three full-time employees and had gross receipts of $181,700. Petitioners received $62,483 in net income from the Edwards agency. Premium renewals from clients accounted for 85 percent of the net income of the Edwards agency,3 and the additional 15 percent came from clients purchasing additional insurance on new cars, homes, or other property. The Edwards agency did not solicit premium renewals. Instead, the regional or national Farmers Insurance office sent Edwards agency clients renewal notices in the mail, and the clients made their payments directly to the Farmers 2 In order to own an insurance agency in Washington, a person must have an insurance license. Wash. Rev. Code Ann. sec. 48.17.060 (West Supp. 2008). 3 During 2003, Farmers Insurance made 12 monthly deposits of such premium renewals into the NW Farmers Insurance Group Federal Credit Union account of petitioners, and those deposits totaled $154,179.Page: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: March 27, 2008