RE: Farmers Insurance Group 2013 Agent Appointment Agreement

Dear Mr. Maile:

Per your prior requests, I am directing to your attention this communication on behalf of the United Farmers Agents Association (“UFAA”). My client feels it important to alert your client to disturbing situation and coercive efforts to force existing Farmers agents to enter the new Agent Appointment Agreement.

As I am sure you are aware, existing agents are not required to enter into the new 2013 Agent Appointment Agreement (“AAA”). In fact, Farmers Group, Inc.

(“FGI”) repeatedly assured existing agents that entering into the new 2013 AAA and/or the addendums was their choice – and their choice alone – to make. Additionally, requiring existing agents to enter into the new contract would of course be inconsistent with their rights as purported independent contractors.

Unfortunately, it would appear that certain individuals within FGI or under its direction have misunderstood that the decision whether to accept the new contract is a voluntary one to be made by each agent. Worse, some of these individuals are now threatening to take adverse action against agents who have not yet signed the new contract. For instance, a Division Sales Manager in Ohio recently advised agents that: “Those agents that have signed the new agreement have been given priority for those division sponsored marketing and growth opportunities."

(Exhibit 1.) In that case, agents who had not signed the new agreement were barred from attending a marketing service program. More startling yet, agents in Colorado have actually been threatened with termination if they will not sign the new contract. These are but two examples of adverse action that has been threatened.

On behalf of UFAA and its member agents across the country, I am demanding that FGI, the Exchanges and their subsidiaries cease and desist any efforts to compel existing agents to sign the 2013 AAA or a related addendum. Please confirm compliance, in writing, within fourteen days of the date of this letter. As always, UFAA reserves all rights to pursue any and all available legal remedies on behalf of its members.

Please contact me if you have any questions about the foregoing or wish to discuss this matter further.

Very truly yours,

Dirk A. Beamer
dbeamer@wrightbeamer.com
Direct Dial: (248) 893-1401
DAB/ds
Enclosures
cc. United Farmers Agents Association
Attn: Allen Yerxa

 


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The United Farmers Agents Association is a professional Association committed to helping our members through education, communications, support and information, and to establish a true partnership with Farmers Group, Inc.

 

   
 

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