Eldridge et al vs. Provident Companies, Inc. et al

The lawsuit claimed that, effective February 1, 1995, Paul Revere unilaterally reduced the Compensation Rates for Brokers for First Year Commissions on FIO, AIB, and GCI premium on in-force policies, generally from 50% of collected premium to 10% and reduced First Year Commission rates for physician business from 50% to 40% of collected premium, and applied such reduction to premium generated by Step Rate increases under policies in force before the reduction was announced. Plaintiffs claimed that this action was both a breach of contract and an unfair and deceptive trade practice under M.G.L. Chapter. 93A. Defendants prevailed on the breach of contract claim. Following separate proceedings on the Chapter 93A claim, the Court held that Defendants had committed an unfair and deceptive business practice in violation of M.G.L. Chapter 93A, and that Plaintiffs had suffered damages as a result of the manner in which first year commission payments were withheld from them related to these AIB, FIO and GCI exercises.

Read More

Contact us for more information