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Subsidy Repayment

Posted by Katie 
Subsidy Repayment
August 24, 2010 12:11PM
In 2005/2006, prior to becoming an Agent, I was a DMTA (i.e. recruiter/trainer) at District level for a year. As a top notch recruiter I was asked to begin a two year program to become a District Manager. During the time I was deciding I met a man who is now my husband and relocated to a place where my only choice was to become an Agent. As a recruiter I had recruited and been told that subsidy was "never repayable" if you made Run to Daylight. The definition of Run to Daylight was two years service, 400 policies and completing the binder training. As an Agent August 2006 to November 2009 I became an award winning Agent with three commercial awards and an Auto award despite significant sabotage by another existing Agent. The District took 500 policies from an existing Agent in town really pissing him off and he took out his anger on me. He logged into E-Agent and managed to re-write policies from scratch which generated a company investigation of insurance fraud. The company determined that suing him would cost more than encouraging him to leave and they forced him to write his resignation letter to appear as if he made the choice to leave. I inherited the rest of his policies. Having signed the *new* Agent Appointment Agreement post-February 2006 I was told I would get half-commissions for one year and then full commissions effective April 2009 (he left April 2008). Someone from corporate contacted me out of the blue offering full commissions. I let my District Manager know and he put a stop to it. I never received full commissions. During that year and a half the disgrunted Agent did everything in his power to sabotage the files I had been left, slander, violated his non-compete clause and even threatened my life. My District's response was "your Agency, your problem" even though the cost of repairing this Agency exceeding my commissions on the 2100 policies I had inherited. Over 80% of my time went towards repairing of the Agency and I still wrote 489 policies and won the three commercial awards and auto award. After a year and a half of being beaten up by the sabotage, at 26 weeks pregnant left the company to become a stay-at-home mom. I had earned enough contract value and saved enough cash to pay off a small $15,000 credit union loan I had taken out to pay the employees to repair what the company wouldn't help with the damaged Agency. A few weeks after leaving I had an emergency c-section at 30-weeks with a 2.8lb son 10-weeks early. My early term birth was due to high blood pressure (i.e. extreme stress) My health insurance paid $333,000 and we accrued no debt. In March 2010 my District Manager was fired for unethical recruiting and essentially stating that the subsidy was not repayable. I received a call from someone in collections stating my $15,000 loan was owed as Farmers took my contract value towards subsidy and I owed $16,500 on subsidy. We refuse to pay it and made the difficult decision to file bankruptcy. Due to my husbands income we have to file a Chapter 13 though I want to provide an argument that indeed we should be allowed a Chapter 7 due to misrepresentation. Trouble is all I have is my story and no paper trail to back it up. I earned less than $10k a year due in part to the half commission but also the sabotaged agency that required I work 60 hours a week and have two full time employees to repair it.

I am looking to you for some help in providing me with a paper trail or something that I could use in court to defend myself. My story is one that is told repetitively. It's assumed I was a failure but in fact a very successful Agent.
I am looking for documented research or some type of paper trail showing that indeed Agents are told the subsidy is not repayable and in fact it is. I had three attorney's read the Agent Apointment Agreement and could not make sense of it.

For the record, prior to becoming an Agent I had never owned a credit card, had a loan or done anything financially irresponsible. I am a woman of integrity and ethics. In making this decision I had to determine which is more unethical: paying Farmers or filing bankruptcy. We felt like bankruptcy was the more ethical of the two decisions. Even my priest agreed with the decision! My contract value paid the $15,000 loan and I walked away with nothing but they took it to pay this subsidy that I had been told was not owed.

Oh and my son is now 8-months old, 17lbs and a vibrant, healthy amazing little boy! The stress Farmers caused couldn't beat this little man into submission! Watch out world...Giovanni Victor Angelo Cascamo is a bruiser!

Any help is much appreciated.

Katie

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Re: Subsidy Repayment
September 07, 2010 11:30AM
Katie,
I know exactly how you feel. I was fired in April 2010 for supposedly moving business, which they had provided me no proof of. And now, 5 months later, today I get served, they are sueing me. Wonderful! The money is not supposed to be paid back or at least they tell you that you will be able to sell enough and make enough money, that you won't have to worry about it. That is a lie. You can't make anymoney with them. I have been in this business for 6 years now and I have never been able to take home a paycheck. They work you in the ground, they raise their rates so high that you can't sell anything, force you almost to the point of bankruptcy and then just as you are at rock bottom, they sue you. Wonderful company.
Good luck to you. If I can do anything, I will be glad to.

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