The aspect of the Select Agent Program that mandates
non-registered agents to refer business to
registered agents violates the Agent’s Agreement and
the implied covenant of good faith and fair dealing.
3.
Writing Restrictions. State Farm did not violate
the Agent’s Agreements when it imposed writing
restrictions in 2001.
4.
Brokering. In a very limited order, Judge Braman
declared that State Farm’s refusal to grant
permission to broker products by two individual
agents did not violate the Agent’s Agreements. Such
a narrow ruling suggests that should there be future
requests involving different types of brokering
requests that incorporate other parameters, those
requests could be honored.
5.
Mandatory Meetings. In another very limited
ruling, Judge Braman indicated that mandatory
attendance at an annual meeting that deals only with
the subject of ethical compliance does not violate
the Agent’s Agreements.
The
winter issue of The Mirror will contain a
complete analysis of the implications of the Judge
Braman’s decision and final order. It will be mailed to
all State Farm agents shortly. The Mirror will
also detail NASFA’s recent decision to pursue legal
declarations that the independent businesses owned by
State Farm agents are franchises as defined by the laws
of many states. Thus, agents are entitled to the
protection provided by those laws.
