Nichols vs. Mid-West National Life Insurance

  • Records department
  • Shelby County Chancery - 901-222-3900
    •  

2023 0413 - 

  1. 23-FEB-2007 - Original complaint (T) - COMPLAINT FOR BRACH OF CONTRACT OF INSURANCE AND FOR MIREPRESNTATION
  2. 18-MAY-2007 - Response (T) - MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE'S RESPONSES TO PLAINTIFFS FIRST SET OF INTERROGATORIES TO DEFENDANT
  3. 18-MAY-2007 - Response (T) - MID WEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE'S RESPONSES TO PLAINTIFFS REQUESTS FOR PRODUCTION TO DEFENDANT
  4. 18-MAY-2007 - Answer (T) - ANSWER OF MIDWEST NATIONAL LIFE INSURANCE COMPANY OF TENNESSEE
  5. 16-JUN-2008 - Answer (T) - ANSWER OF DEFENDANT CHARLES S SWENSON
  6. 14-MAY-2012 - Motion (T) - FOR SUMMARY JUDGMENT
  7. 14-MAY-2012 - Memorandum (T) - OF LAW IN SUPPORT OF DEFENDANT CHARLES S SWENSON'S MOTION FOR SUMMARY JUDGMENT
  8. 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

 

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

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
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  •  
  •  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.
  • 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 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 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 - 
  • Jim "McGahey and Associates"