Unauthorized Practice of Law

  • “National Conference of Lawyers and Life Insurance Companies”
  • ABA – American Bar Association
  • 1951 – LR – The Bar and the Unauthorized Practice of Law: A Survey – 13p
  • 1955 – LR – The Unauthorized Practice Controversy, A Struggle Among Power Groups, by Quintin Johnstone – 57p
  • 1964 – LR – Unauthorized Practice of Law – Planning Estates Incidental to Selling Life Insurance Construed as the Practice of Law – Oregon State Bar v. John H. Miller & Co., 385 P. 2d 181 – 7p
  • 1966 – LR – The Unauthorized Practice of Law by Laymen and Lay Associations, by Loyd P. Derby – 34p
  • 1973 – ABA – Unauthorized Prac. News 81 – Midwinter Report of ABA Unauthorized Practice of Law Committee
  • 1991 – Be It Resolved That the National Conference of Lawyers and Life Insurance Companies be discontinued. – 4179R – 3p
    • STANDING COMMITTEE ON NATIONAL CONFERENCE GROUPS
    • National Conference of Lawyers and Life Insurance Companies
  • When rendering legal advice to prospective customers, life insurance salesmen have a conflict of interests-they are interested in setting up an estate plan with the maximum amount of life insurance regardless of the best interests of their client.141
  • 141 In Anderson v. Knox, 297 F.2d 702 (9th Cir. 1961), a life insurance agent sold a bank-financed insurance policy with a face amount of $100,000 to a 36-year-old purchaser whose income was around $10,000 a year,  representing that the plan was suitable for the needs of the purchaser and his family.
    • To pay the first premium, the purchaser converted and pledged his existing life insurance policies.
    • The purchaser soon found the plan to be disadvantageous and was forced to cancel his various insurance policies.
    • He then sued the insurance agent for fraud and misrepresentation and was awarded compensatory damages of $13,000, punitive damages of $10,000, and $2,500 for mental distress.

1966 – LR – The Unauthorized Practice of Law by Laymen and Lay Associations, by Loyd P. Derby – 34p