Generes v. Security Life Ins. Co. of America

163 S.W. 386, 1914 Tex. App. LEXIS 210
CourtCourt of Appeals of Texas
DecidedJanuary 10, 1914
StatusPublished
Cited by3 cases

This text of 163 S.W. 386 (Generes v. Security Life Ins. Co. of America) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Generes v. Security Life Ins. Co. of America, 163 S.W. 386, 1914 Tex. App. LEXIS 210 (Tex. Ct. App. 1914).

Opinion

TALBOT, J.

Appellant brought this suit against the appellee to recover the sum of $6,606.76, alleged to be due upon life insurance agency contracts. Appellant prayed, also, for an accounting. The trial was had without a jury, and resulted in a judgment for appellee, and appellant appealed.

The first contract mentioned in appellant’s petition, which is dated March 16, 1909, and signed by the parties, after stating that it is the basis for contract between appellee and appellant covering such parts of the state of Texas as may be agreed upon from time to time, provides:

“The agent under this agreement is to have the title of supervisor, and will receive a salary of $250.00 per month and all necessary traveling expenses. The agent will be allowed the following schedules of first year’s commissions on personal business, and will be required to make contracts with his sub-agents on the basis of the schedule of commissions given below; he will also require from all of his agents that he assists one-half of their commissions for the assistance:

Kind of Policy. First-Year
Commission Percentage.
Economic Ordinary Life N. P.50
Economic 20-Payment Life N. P.50

“[Then follows 16 other kinds of policies and first-year commission percentage.]

“At the end of a certain time,' hereafter to be agreed upon, the company will add together the agent’s salary, all expenses and commissions paid' to agents, and amounts due by reason of canceled and undelivered business, and, if the total cost of his business thus computed on the various forms of policies is less than the following schedule of commissions, counting paid for business only, the difference, if any, shall be due and payable to. the agent:

Economic Life N. P.69
Economic 20-Payment Life N. F..;.77

“[Then follows 14 other kinds of policies and commission percentages.]

“The agent will be allowed the following collection fees, provided he remains in the service of the company:

Kind of Policy. Collection Pees No. of
Percentage. Tears.
Economic Ordinary Life N. P. .6 5
Economic 20-Payment Life N. P.6 6

“[Then follows 16 other kinds of policies, collection fees, percentages, and number of years.]

“The agent will be allowed to pay his sub-agents such collection fees under the above schedule of policies as he may agree with them, conditioned upon their remaining in the service of the company, and not greater than the fees contained in the regular printed contract. All settlements taken by the agent are to be sent to the company.”

On August 2, 1910, appellee wrote appellant as follows:

“Mr. L. M. Generes, Box 606, Dallas, Texas —Dear Sir: Referring to your contract with this company, I beg to state the company is willing:

“First. To increase your monthly drawing account, beginning August 1, 1910, to $350.00 per month.

“Second. To make you an allowance of $600.00, which is to be payment in full for the extra commissions requested by you on coinsured business prior to August 1, 1910, with the understanding that the same is to be charged to your account until the notes given on all of the coinsured business have been paid in full in cash to the company.

“Third. On all future coinsured business to allow you on the ordinary and 20-payment life policies a flat commission of 60 per cent., less taxes and board contract dividends, said commissioners to be credited to your account, and not to be paid to you in cash until the same have been received in cash by this company.

“Fourth. In the event of the company contracting direct with O. B. Storer, it is understood that you will waive any interest in any of the business produced by him under said contract.

“Fifth. With the understanding that you will use your best endeavors to turn in a satisfactory volume and quality of business as you have done heretofore until your second year is over, which, according to our understanding, is March 1,1911.

“All of the officers of the company join in wishing you health and prosperity. [Signed] Security Life Insurance Company of America, by J. B. Sells, Yice President.”

Appellant indorsed on said letter his acceptance of the terms here proposed, signed his name thereto, and returned the letter to appellee. On March 1, 1911, appellant and appellee entered into another contract, the terms of which, among others, are that appel-lee thereby' appoints appellant as its agent, with authority only of securing applications *388 for insurance on the lives of individuals in the territory designated, appellant agreeing to comply with all instructions contained in appellee’s rate book, and which may be given him from time to time by the appellee; that appellant shall collect first-year premiums and such other premiums as he may be authorized to collect when furnished with the regular receipts of the appellee for such premiums ; that he shall remit promptly to ap-pellee all premiums when collected, such remittances to be made with the application when a cash settlement is taken at the time of writing same. In the event a cash settlement by the applicant is not made until delivery of the policy, then the net due the appellee shall be remitted in cash immediately. Notes taken by the agent in settlements, when taken at time of delivery of policy, may be retained by the appellant; but, in all cases when notes are taken, the net due the company shall be due and payable from the agent immediately upon said notes being discounted or sold by the appellant, and, if not so discounted or sold, the net due the company shall in all events be due and payable to appellee 60 days after such notes are taken by the agent. The appellee, in consideration of the services to be rendered by appellant while the contract is in force, agrees to pay appellant, on all business written by him, a commission upon the first year’s premium of each policy accepted and paid for in cash, and a renewal commission upon subsequent premiums when paid in cash in accordance with certain tables set forth in the contract. This contract further provides: “That its execution abrogates, terminates, and renders void all previous agency contracts made between said parties, and all claims to compensation by the agent under any previous agency contract are hereby waived and canceled except as to first year’s commissions, if any, that may now be due, or shall become due, the agent on business heretofore written. Provided that nothing herein contained shall be construed to affect or waive any claims of any kind, whether for money or otherwise, of the company against the agent under any previous agency contract; that, beginning March 1, 1911, the company agrees to advance said agent the sum of three hundred and fifty dollars ($350.00) per month and all necessary and actual traveling expenses. The same will be charged to his account.

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163 S.W. 386, 1914 Tex. App. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/generes-v-security-life-ins-co-of-america-texapp-1914.