Nichols vs. Mid-West National Life Insurance

  • Records department
  • Shelby County Chancery – 901-222-3900
    •  
  • 2023 0413 – 
    • 23-FEB-2007 – Original complaint (T) – COMPLAINT FOR BRACH OF CONTRACT OF INSURANCE AND FOR MIREPRESNTATION 
    • 18-MAY-2007 – Response (T) – MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S RESPONSES TO PLAINTIFFS FIRST SET OF INTERROGATORIES TO DEFENDANT 
    • 18-MAY-2007 – Response (T) – MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S RESPONSES TO PLAINTIFFS REQUESTS FOR PRODUCTION TO DEFENDANT 
    • 18-MAY-2007 – Answer (T) – ANSWER OF MIDWEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE 
    • 16-JUN-2008 – Answer (T) – ANSWER OF DEFENDANT CHARLES S SWENSON 
    • 14-MAY-2012 – Motion (T) – FOR SUMMARY JUDGMENT 
    • 14-MAY-2012 – Memorandum (T) – OF LAW IN SUPPORT OF DEFENDANT CHARLES S SWENSON’S MOTION FOR SUMMARY JUDGMENT 
    • 03-AUG-2012 – Consent Order FINAL (T) – Entry: CONSENT ORDER OF DISMISSAL WITH PREJUDICE

 

Filing Date Description Name Monetary
23-FEB-2007
03:46 PM		 Original complaint (T) BLOUNT IV, JAMES E  
Entry: COMPLAINT FOR BRACH OF CONTRACT OF INSURANCE AND FOR MIREPRESNTATION $286.50 PAID BY CK# 14472 TAYLOR, JONES, & ALEXANDER
23-FEB-2007
04:09 PM		 Request (T) BLOUNT IV, JAMES E  
Entry:

PLAINTIFF’S REQUEST FOR PRODUCTION TO DEFENDANTS

 
23-FEB-2007
04:09 PM		 Interrogatories (T) BLOUNT IV, JAMES E  
Entry: PLAINTIFF’S FIRST SET OF INTERROGATORIES TO DEFENDANT
18-MAY-2007
03:43 PM		 Response (T) CHILES, LEIGH M.  
Entry: MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S RESPONSES TO PLAINTIFFS FIRST SET OF INTERROGATORIES TO DEFENDANT
 
18-MAY-2007
03:45 PM		 Response (T) CHILES, LEIGH M.  
Entry: MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S RESPONSES TO PLAINTIFFS REQUESTS FOR PRODUCTION TO DEFENDANT
 
18-MAY-2007
03:46 PM		 Answer (T) CHILES, LEIGH M.  
Entry: ANSWER OF MIDWEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE

 

25-OCT-2007
04:02 PM		 Request (T) HEADRICK, S RUSSELL  
Entry: MID-WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S FIRST SET OF INTERROGATORIES AND FIRST REQUESTS FOR PRODUCTION OF DOCUMENTS TO PLAINTIFFS
 
07-DEC-2007
01:56 PM		 Response (T)    
Entry:

PLAINTIFF’S RESPONSE TO MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S FIRST SET OF INTERROGATORIES
16-JUN-2008
03:49 PM		 Answer (T) ZIEGENHORN, JENNIFER  
Entry:

ANSWER OF DEFENDANT CHARLES S SWENSON
24-JUN-2009
02:05 PM		 Interrogatories (T) BLOUNT IV, JAMES E  
Entry: PLAINTIFF’S FIRST SET OF INTERROGATORIES TO DEFENDANT CHARLES S SWENSON
 
22-JUL-2009
11:27 AM		 Response (T) ZIEGENHORN, JENNIFER  
Entry: OF DEFENDANT CHARLES S SWENSON TO PLAINTIFFS’ FIRST SET OF INTERROGATORIES
29-DEC-2009
09:55 AM		 Response (T) TAYLOR, BENJAMIN L  
Entry: PLAINTIFF’S RESPONSES TO DEFENDANT CHARLES S. SWENSON’S FIRST SET OF INTERROGATORIES
 
29-DEC-2009
09:59 AM		 Response (T) TAYLOR, BENJAMIN L  
Entry: PLAINTIFF’S RESPONSES TO DEFENDANT CHARLES S. SWENSON’S REQUEST FOR PRODUCTION
02-APR-2012
04:09 PM		 Response (T) GRADDY, CHAD D  
Entry: DEFENDANT MID-WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE’S RESPONSE TO PLAINTIFF’S MOTION FOR TRIAL SETTING AND/OR FOR SCHEDULING ORDER
14-MAY-2012
04:11 PM		 Motion (T) ZIEGENHORN, JENNIFER  
Entry: FOR SUMMARY JUDGMENT
 
14-MAY-2012
04:18 PM		 Memorandum (T) ZIEGENHORN, JENNIFER  
Entry: OF LAW IN SUPPORT OF DEFENDANT CHARLES S SWENSON’S MOTION FOR SUMMARY JUDGMENT
 
03-AUG-2012
03:42 PM		 Consent Order FINAL (T)    
Entry: CONSENT ORDER OF DISMISSAL WITH PREJUDICE

 

  • Part 1 – Agent
    • 00:12:00 – Business Card, Independent Contractor, Agent v. Broker, his Titles, took applications for Mid-West, other company, Commissions, it got very confusing, percent of premiums, advances, charge backs underwriters, $3,500 payback, didn’t, didn’t have the money, residuals, Quit – May or June 2005
    • (00:18:00) – Moved to Florida, 
    •  – MidWest made it perfectly clear that I was not an employee of Mid-West, etc.  Contract, Jim Mcgahey-sp?, District Managers (Leaders) reviewed paperwork, 
    •  (00:20:00-?) – Sales Leaders- Tuesdays were recruiting days, he did training, 
    • (00:22:00) – I could only sell for Mid-West, Premium Collection – Just 1st, 
    • 26:00 – Training for New recruits – how to fill out paperwork, how to make a presentation for life insurance, Health insurance was more complicated than Life Insurance, How did you learn how to do this, sales leaders who were there when I started, any manuals that Mid-West provided – No.  They did have Brochures.
    • 28:30 – Exhibit #1 – Notice to bring anything to deposition, we didn’t keep anything of the policies.
    • 31:00 – Exhibit 2 – Bates Stamps – 163 /164,  Letter Addressed to you – MidWest references you at as Agent…. at McGahey and associates. Has never seen the letter.
    • Who was Cornerstone America? Sales Arm of Mid-West-?, When in front of clients said he was from Mid-West, ins and outs were confusing. Alliance-? – For Selling Health Insurance. 
    • 35:00 – Agents Questionnaire – Have you ever received one / filled one out…. 
    • 38:00 – have you ever seen…policy sold, client died, company didn’t pay.
    • 40:00 – Exh. 2-Bates – Agents Questionnaire – Contact with Client / insured – April 2005 – Never had contact with Antonio Nichols, kind of fuzzy, had contact with Delania ( ) – on Walk and Talk, no recollection.  refers to Complaint. Mother might need insurance. Had appoint with mother, she said that Antonio (Son) might be interested. Wrote application for Antonio. 
    • 44:00 – was it normal to go to people’s home? – Yes. Walk and Talk to Businesses, not homes. Applications were usually done at their homes – the majority. Target Market – Individuals, not group.  
    • 47:00 – Delania answered the questions for the application. 
    • Signature of Applicant – Delania – he witnesses, Signature of Insured – Antonio – he did not witness.  How / When was the  policy delivered – not him, it was mailed to, did you sign the application, in what capacity… as they (Mid-West) refer to it .. the agent.
    • 50:00 – after the application I have nothing to do with it, underwriters- didn’t give reason for declines, no contact with underwriters.  Doesn’t remember any Life Insurance Policies being declined. 
    • 51:00 – Sold insurance for Mid-West for  , got license in April of 2004, wrote policies to May of 2005.  How many Life Policies? – Doesn’t know…. in the neighborhood of 10. Life and Health in one Policy? No.
    • 53:00 – Questions 6.  Did you ask all the question? Yes, exactly as they were worded.  
    • 54:00 – Exhibit – Application for Antonio Nichols – 
  • Part 2 – Agent 
    • Start – Application. Your handwriting – Yes.  Information from Sister.  is that normal?  no.  
    • Attorney: I mean you’ve got experience in insurance. – Agent: well, I worked in insurance for 3 or 4 months in the early 60s.- in Jacksonville, Florida. Sold 1 or 2 policies.  
    • Work History – 36 years in wholesale paper industry
    • Housing History
    • Application – May 2, 2005 – Last application he wrote for Mid-West-yes
    • 06:00 – When this policy were canceled did you get a charge back-no. I was gone already. …. a Claim was put in on that policy.
    • 7:00 – Importance of information on Application.  honestly answering the questions – it’s okay if the Owner is honest. Give an answer to the best of your knowledge.
    • 9:00 – second page vs first page. – Would Delania have had all of the information. Driver’s License, etc.  he did not have one. is that normal?-no. Smoking Question- no. – information from Delania. .. would she know. yes, if they said they could answer the question. impact on application / insurance price…smoker would cost more.  Premium done with a computer….Agent would put info in computer (had a laptop with him). Computer to figure what the premiums would be. 
    • 13:00 – 
    • 14:00 – Have “You” – Asking for Clarification – Driving Violation – 3 or more in – Did Delania understand that “You” was Antonio, not Delania.   Beneficiary – Diane, Relationship-Mother.  Owners-Unless otherwise noted the Owner will be the Insured.  and the Owner is Delania Nichols. Explain. Owner can determine who the beneficiary is.  he had met Diane, Mother (First Contact)
    • 17:00 – Tobacco/moving violations/ drugs/ awaiting trial.  would an answer of yes affect the premium.  Nothing in computer to input that in. 
    • 18:00 – Premium – Categories – Smoking and Non-Smoking – Rating. 
    • Premium Rate
    • Health Insurance – Diabetes – Knew Wouldn’t get policy
    • Life Insurance – Doesn’t know if there is anything would automatically reject them, they might be rated.
    • 20 – Life Insurance is a bet, would you agree with that. Agent – Yes….I wouldn’t go that far. Application is how the company
    • 21 – Did you know that the company had rescinded this policy? – no. , I’m assuming they did but I don’t know that for a fact.
    • 22 – Post-sale Underwriting – Exhibit-? – Have you ever seen that? – no.  it appears to be a memo why they would not have issued the policy if they had know some information. Reasons – Smoking, Driving Issues, Lawyer: Doesn’t say anything about driving.  
    • 17 – is the question vague – License, moving violations? – Agent: no.  Suspended, Drivers license #, never had one,  .  Attorney: You agree with me though that then couldn’t be suspended or revoked.
    • —-    to other lawyer – would you stipulate that the questions are vague. —
    •  Agent: – it appears, but I don’t know that
    • 29 – Policy Information – Mode of payment – none check, reason – one of those should have been checked. 
    • Amount of Insurance / Death Benefit – $50,000… Universal Life – Option A.  Planned Premium – $27.13.   2 choices. Universal Life / Term. Agent Explanation – that it will stay level.  Term – Less Money, Fixed term period, expires unless it is renewed. Lawyer – <More Sutff.
    • 31 – Optional Riders – ADD – Agent Explanation.  
    • 31 – Health Questions – with Delania, all checked no, except for 3… any other…. yes, broken leg…hospitalized…. ((((Name-???- Why do they ask for it))) – Agent-Wait a  minute …I know why…
    • 35 – will the insurance applied for replace any? – no
    • 36 – Agent Signature – I certify I have supplied insure (Antonio), Agent – I did not provide insured a copy. Disclosure – Illustration – went to Delania, not Antonio.  
    • 36 – Agreement Authorization – Insured to sign………Agent – .I look at it that both owner and insured agree…..Attorney-bold / big x. = Both of them have signed it. 
    • 38 – Personal Interview – What is it? Was it done?
    • 38 – Did you know that Antonio Nichols couldn’t read or write?
    • 39 – Why wasn’t Antonio there?  Hard days work.
    • 39:30 – Company rescinded it.    Company is claiming for moving violations, no license.  Background history. doesn’t say they are rescinding the policy.
    • 40 – UL vs Term – Attorney: Was there a pitch.  How did you come up with… Agent: UL vs Term. UL – Cash Value, Investment, Premium is level, Vanishing Premium, Cash Value could pay the premiums.
    • 44 – What was Delania Nichols motivation for this policy?  Agent:  I have no idea, assume…Final Expense Insurance… pre-plan their funeral..graded benefit, 2 years. uncontestability period.  based on information in the application.
    • 47 – Sales Process – Amount of information – $50,000 – how was that determined?  Process of figuring the premium. ul v term. ul-then, what amount of DB, then it’s usually determined by what the premium would be. 
    • 49 – Attorney- Did you tell Delania that if any of the answers were incorrect that the insurance company could deny coverage.  Agent- I don’t recall, I would say to the best of your knowledge. 
    • 49 – 
    • 51- Did Delania intentionally misrepresented? no. Do you know if Delania knew that this information was incorrect? -no
    • 52 – Did you have to take a test for insurance license?-yes, 3 day test. Basic understanding  of health, life, what you can and can’t do, legal aspect. Did you get training materials from the state, A: from the school.
    •  54 – Q: Did you give any advice to Delania? A: I don’t understand what you are asking? Q: Did you explain to her like you did with me—- Lawyer-Asked and Answered.  A: I would not have given her a choice. Q: Is there a reason you would not have given her a choice? A: if she knew what she wanted….if not I would explain the difference. A: it’s up to them, it’s their insurance.
    • ⇒ 56 -longer –  Q: Have you seen the answer to the complaint? A: The answer to what? Attorney- A: Yes, I have seen that. 8th answer – <More>
  • Part 3 – Agent
    • Start – Exhibit 5 – A: Yes I recognize it. Answer to the Complaint.
    • 8th Defense – Q: How did you come to that conclusion (see Part 2 – Agent), Delania didn’t tell the whole truth?  Q: Do you know why that was put in your answer?
      • [Bonk:Connect with – Where from – From Other Lawsuit. Q. Are you aware that in this lawsuit there is no allegaüon, no claim by you, that you purchased a savings and retirement plan?  A. No, I am not aware of. …… is the first I have heard of this in connection with your lawsuit. Are you aware of that? A. No.
    • 7 – Q – Was Magahey involved? – A: No
    • 8 – Going over answers to application – Sales Process
    • Q: Do you know if those answers are incorrect? – A: No, I don’t know
    • how does the underwriting work
    • 12- How do you see you role in the sales process? A:  
    • Q: Do you know if a policy was ever written? A: I don’t know
    • 14 – Q: did you do everything you were suppose to do. A: yes.  What about the premium. Do you want to change your answer A:  Q: so, it’s your position that not every question needs to be answered>>>
    • Q: Are you familiar with Post-Claim underwriting?  A: no
    • >>> information not needed????
    • A: The underwriters could have assumed, monthly bank draft…. Q: any other things underwriters could have assumed? A: no
    • 18 – drivers license  – none……………
    • 19 – Title  – Signature of Agent, Agent Number,  couldn’t work for any other insurance company while working for Mid-West
    • 20 – Q: Do you know how Antonia Nichols Died? A: no
    • 22 – Exhibit 7 – Bates MWNichols0026 – 2006 0703 – File Memo from Mid-West, Claims File – Antonio did not answer the questions, the owner did. Agent re Q: Is that appropriate in the Life insurance context? A: Yes.
      • Q: Appropriate for Insured not to be present when application was Taken?  A: yes
      • ⇒  24 – Advised her refer agent for review, policy would still be null and void. Q: Is that your understanding … null and void. A: ………… 
    • 28 = Weight – Application-160lb, [just a question, no other info]
    • 29 – Reason for recision, moving violation? I dont’ know
    •  – Exhibit – MWNichols0037-MWNichols0052 – 50-52=Application….
    • 33 – Do you recognize that document? A: No. Q: Did you see the life insurance policies after they were written? Q: No
    • Q:  have you ever seen a life insurance policy before? A: Yes, my own.
    • ⇒  Policy – Flexible Premium Adjustable Life Endowment at age 95. Q: is this the policy that was issued? A: I don’t know.
      • Bates 38 – Policy Schedule – Premium Amount. $168.50  vs  $27.13, 
      • Initial Premium – 168.50, what did you
      • quote A: $27.13
      • Do you have any idea where the $168.50 came from?
      • Would that have been on your computer? I would
      • p36 – Maturity Date – May 28, 2027 – Q: What is it?  A:  That would be when the policy matures.
        • A: I’m not sure, but I think the policy would have ended at that point.
    • 38 – Q: Application becomes part of the policy when issued?
    • 39 – Q: Have you seen any samples of policies? A: no
    • 39 – Definitions page?
    • 40 – Q: Have you ever … Client ask… definitions … policy…contract? A: No, I’ve never delivered a policy?
    • 41- Q: Did you contact Mid-West? A: Yes….. will they provide legal representation for me?  Q: What did they tell you? A: No, we do not. usually because the agent did something wrong <<more>>
    • 42 – Q: Mid-West hire you a lawyer? A: Yes
    • 43 – Exhibit 2 – Letter Addressed to you – 
    • 44 – his talk with Mid-west,
      • Q: Why is Mid-West paying for your Lawyer? A: …
    • 45 – Q: So you don’t think you did anything wrong? A: No, I don’t.
  •  Part 4  – Agent
    • Start – What’s your role?
    • Main difference, to make sure the questions asked were understood, proper answer back based on the knowledge they had,
    • one not filled out
    • Did Delania Nicholas understand the questions? How do you know?
    • ⇒  Objection – What’s the basis of your objection.
    • A: Can I know if she was lying or not, I don’t know
    • Q: Antonio doesn’t need to be here if you feel you can answer these questions.
    • [Insurable Interest] – Beneficiary is Key.  A: Q: Why?
    • ⇒ 5- definitions page – you don’t have that when you meet people, Delania
      • Q:  Do you think that is important?
      • Licensing Class
      • Vocabulary – Terms
    • 7 – Exhibit – Mid-West Memo – Reason for recission, 
    • 8 – Exhibit 
    • 10 – Letter to Diane Nicholas re: why they recinded the policy.  Moving vehicle records, 
    • 11 – Q: Rescinding vs.  Cancelling, A: I don’t know
    • 12 – Q: all told, how long have you worked in the Insurance Industry? A: 2 years
    • 13 – Premium Payments – Q:  Do you think the Insurance company could have rescinded it for that not being filled out?  A: No…..
    • 14 – Q: If the company did, would you have gone to bat for the Nicholas? A: ??? – the Agents didn’t talk with Mid-West.  You would get Chewed-out if you did. You would have to go to the District Sales Leader, and they would go to Mid-West.  Q:  Weren’t you a District Sales Leader. A: Yes
    • 20 – MIB – A: They will get the records. Everything is in your records.
    • 20 – Q: What’s the MIB? A: It’s the CIA of Insurance.
  • Mid-West 30b6 Deposition Linton Checka PART 1 – Underwriting Issues – https://www.youtube.com/watch?v=kCD4VY4iGSo&list=PLU-Q5aFlVyvnV8Ao8nsaAhrW1z0SymAK4&index=5
    • Document – Serve – We weren’t properly served, got copy from co-defendant, hope this isn’t a waste of time. First page is fine, others maybe not.
    • 5- goes over the ones the could go over and the ones that they couldn’t. Legal Objections to some.  You didn’t tell me this yesterday.
    • background – MegaHealth and Life, Manager of Underwriting of Mid-West Life in Texas at the time. Bought by BlackStone. Changed name approx. 2006. in underwriting for 27 years. Policies and Procedures. Policy sold out of Oklahoma Mid-West Division. 
    • 10 – The company that sold this policy was out of Oklahoma, the business was sold, perhaps in 2008.
    • 13 – ONe of the questions could have been answered differently, then we would have investigated and then we probably wouldn’t have issued a policy.
    • 15 – Agents. Role – are they employees or not. I believe they were independent,  
    • 16 – Policy was issued. 
    • Pamela Smith-?
      • Exhibit 1 – Letter / Enclosed documents – Recission letter, after death, material representations on the application, 
    • Off the Record
      • Q: Why was the policy not returned?
    • 23 – Post-sale Underwriting vs information that should have been on the application
    • 24 – How are a dead persons medical records important.
    • 26 – Q: So, you can post-sales – 2-years
    • Gun Shot wound…. Criminal activity…
    • Mr. Nichols was on probation…for assault??
    • applications didn’t look the same — Texas vs Oklahoma
    • have you seen the interrogatorries – I don’t know what those are… no, I have not seen them, … then you probably aren’t the best person to talk to …. do you know who would be… it it’s about underwriting, then it would be me.
    • 30 – Pamela Smith answered questions to the interrogatories. and you don’t know who she is.
    • 30 – what is your recollection of the application? Objection.  Broad and Undefined.
    • 31 – you review applications, you understand policies, generally
    • 32 – Homicide would be an accidental death. Do you agree? A: Yes
  • Mid-West 30b6 Deposition Linton Checka PART 2 – https://www.youtube.com/watch?v=c80qLPDF_ng&list=PLU-Q5aFlVyvnV8Ao8nsaAhrW1z0SymAK4&index=6
    • Mid-West doesn’t sell Life Insurance policies anymore, stopped in 2008, why?-don’t know
    • 3 – Training
    • 5 – Her Background
    • 7 – Underwriting vs Issuing / Fulfillment
    • 9 – Personnel List
    • 12 – How would you investigate?
      • Use a vender to get information
    • 16 – Exhibit – Letter
    • 17 – Application, becomes part of the policy
    • 18 – is that a standard application
    •  – Letter – question a, page 1, moving violations
    • 20 – What is your objection to your question?
      • Bates 72 – Underwriting File, information from the Claim File
      • Claims time, history not admitted [Bonk: How do they find “History not admitted”}
    • 33 – are you familiar with Agents role? What is their role? 
    • 33 – Do you think it’s important that the insured is in the the conversation with the agent / application process.
    • 34 – You are very artful with your words.
    • 35 – Did you know that Mr. Nichols was illiterate?
    • 35 – Memo – null and void
    • 36 – What is the importance of having the agent go over the application / policy? A: I don’t know. Who would be the best person to ask? 
    • 37 – Do you know how the agents are compensated? no, who would know that?
    • 38 – are the records from Oklahoma in Texas or somewhere?
    • 38 – Swenson’s role, 
    • 38 – Who could testify about Swenson’s compensation? A: Maybe the Licensing Department
    • 40 – What does Tennessee have to do…. we have been talking about Texas and Oklahoma…Did
    • 40 – Do you know if the underwriting was done properly for this policy. What did you look at? A: Application, Review of the Application (Before the Policy was issued), notes, ran an MIB Report, What does that do?  Member companies share information, Information from IAI (Application History) – came back with non-smoking, MIB Covers Health, Driving Violations, Criminal Activity, Lab Testing.  MIB information only comes up if others have applied for insurance from another MIB insurance company. 
    • 44 – Do you run MIBs on everybody.  Don’t know what the procedures are for IAI.
    • 45 – we didn’t have a large life insurance business.
    • 47 – Rescinded because of a / b