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July 7 2018 2053 GMT
Robert J Koenig on
the institution of the Attorney-in-Fact

Started February 2 2018

The Substitution
of a
new
Syndicate Manager (the Attorney-in-Fact)
at an
Insurance Syndicate
organized as a
Reciprocal Interinsurance Exchange
www.newaif.com
© 2018 Robert J Koenig [1] 

Corrections, comments, criticisms/compliments and USAA hate mail may be phoned, sms’d, mms’d, or FaceTimed to Robert J Koenig at+1.212.203.9712.

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AAA  [2] , Erie  [3], Farmers  [4], USAA [5]  , and Lloyd’s of London are not-incorporated  [6] insurance syndicates.

Each of these five insurance syndicates [four USA-based and one UK-based] are operated by a syndicate manager.

The absolutely last thing that the syndicate managers at USAA, Erie, Farmers and AAA want the syndicate names to know is that the syndicate manager can be terminated at the end of any business day by a simple majority vote of the syndicate names.

A USAA attorney Lori Massey suborned a sitting Texas Bexar County Judge, The Honorable Solomon John Casseb, to permit bestial and confiscatory actions towards a USAA syndicate name, Helwig van der Grinten, who did no more than mention the subject.

Lori Massey Brissette Esq

Texas Attorney Bar Card Number: 00787978

Vice President

Insurance and Annuity Client Services

Northwestern Mutual

720 East Wisconsin Ave

Milwaukee WI 53202

+1.414.271.1444

The Honorable Solomon John Casseb III

Texas Attorney Bar Card Number: 03976100

288th District Court

Bear County Courthouse

100 Dolorosa 4th Floor

San Antonio TX 78205

+1.210 335.2663

clerk288@bexar.org

The USAA attorney Lori Massey also committed a crime (fully sanctioned by Casseb) by fraudulently representing the 2.5 million syndicate names at USAA as the real parties in interest.  Even a child knows that the real parties in interest in the bestial harassment of Helwig van der Grinten were Lester Lawrence Lyles  , Laura Anne Mahan Bishop  and Stewart Blaine Parker and the USAA Directors (Exhibit “A”).

USAA’s attorney Lori Massey was joined in her bestiality towards Van Der Grinten by these two members of the law firm where she was also (pro temp) a partner:


http://www.fordmurray.com/attorneys/ford-bio.php 


http://www.fordmurray.com/attorneys/peden-bio.php 

William H Ford Esq

TX Bar Card Number: 07246700

Partner

Ford Murray PLCC

Union Square II

10001 Reunion Place Suite 640

San Antonio TX 78216

+1.210.731.6400

fax: +1.210.731.6401

bill.ford@fordmurray.com

The Honorable Michael P Peden

Texas Bar Card Number: 15710500

Of Counsel

Ford Murray PLLC

Union Square II

10001 Reunion Place Suite 640

San Antonio TX 78216

+1.210.731.6400

fax: +1.210.731.6401

michael.peden@fordmurray.com

The Honorable Judge Paden, sort of a private Imam for USAA’s sharia court where it takes dissident members, was associated with some of the Bexar County District Court orders that were used to jail me.


Of the four United States based insurance syndicates, only Erie has a canon public corporation as its fully-fledged syndicate manager [7].

The Farmers’ syndicate manger [8] is an affiliate of Zurich Insurance Group, a Swiss-based public corporation (see Annual Report for 2017).  Here is how Zurich describes its connection to Farmers:

Zurich made $1.7 billion on ~$4 billion of indemnity contracts exchanged in 2017 from “managing”an insurance syndicate it fully admits that it doesn’t own:

In 2017, Zurich committed only 8%, or $2.4 billion, of its $31 billion in capital to Farmers:  thus Zurich is earning a whopping 66% rate of return on its “investment” in Farmers”.

USAA [9]  and AAA [10]  are each operated by their own in-house captive downstream syndicate manager [the ultimate controlling party] who are both completely non-independent.

It is probative that of all five insurance syndicates, only Lloyd’s discloses its true organization structure:


nb (by Robert J Koenig):  A lot of people become very upset when I stress (to the admitted point of obsession) that the surplus at USAA (and Erie, Farmers, and AAA) is a several liability on the part of each individual syndicate name.  Jimbo Wales at Wikipedia agrees that there is no such thing as several liability - and suspended me for life from Wikipedia for writing about it.  Well - Lloyd’s of London seems to suffer from the same disease as do I -  a need to discuss the status of the surplus at Lloyd’s as a severalty. Makes one think?  How did Jimbo Wales at Wikipedia come to believe that several liability at USAA, Farmer, AAA and Erie was not noteworthy? I believe Jimbo Wales was bribed.

Erie comes in a close second place with a refreshing degree of sometimes hokey and uninformed openness [see entire Erie bulletin: ur-version; annotated ocr’d version].

The H O Hirt Family Trusts, speaking for their closely-held Erie Indemnity Company, also publish a highly comprehensible organizational chart which is almost truthful about Erie’s structure:

Note (above) that only a dotted line connects the unincorporated reciprocal interinsurance exchange to the attorney-in-fact.  

While not my only disagreement with the way the H O Hirt Trusts represent the situation, I also object to the header page of Erie Insurance Exchange’s own NAIC report which pretends writ large that Erie Insurance Exchange has a Board of Directors, which it does not.

How do we know that Erie Insurance Exchange does not have a Board of Directors

We are informed by the Third Circuit’s dictum about Erie Insurance Exchange essential structure:


United States Court of Appeals for the Third Circuit No. 14-1573

The issue is not just cosmetic: and I have written the Pennsylvania Insurance Department about my concerns.

Even with footnotes and qualifiers, there should be no mention of directors or officers on the Exchange’s NAIC.  Portraying the directors of Erie Indemnity Company as somehow serving as sort of of Board of Directors by proxy for the Erie Insurance Exchange is just plain misleading.

It’s as if to call the foxes chickens.

This is especially true when one considers that Erie Insurance Exchange should have some sort of governing body made up solely of syndicate names who are entirely unconnected wirth Erie Indemnity Company.

It is also bothersome and concerning that even the names of the two entities seems to misdescribe their native function and raison d’être.  Including the word “indemnity” in the name of the manager suggests that Erie Indemnity Company is an insurance company - which it is not.

Just the name of the exchange, Erie Insurance Exchange, seems to go out of its way to disguise the fact that Erie Insurance Exchange is an ordinary conventional insurance company.

Why not give these two entities these names, respectively:

Erie Attorney-in-Fact Company, Inc

An SEC-Registered corporation in the sole business of serving as an  insurance syndicate manager

and

Erie Reciprocal Interinsurance Exchange

An unincorporated insurance syndicate (organized as a reciprocal inter-insurance exchange)

nb:  In fact, I think that such a renaming would benefit both the public securities markets and the interests of the syndicate names.


nb:  Tom Hagen’s grandfather (by marriage - or whatever), H O Hirt, puts two BMW’s in the garage of every Erie founder H O Hirt heir.  That is what America is all about!  Except for a little niggling and quite recent incident of “hand in the cookie jar”:  H O Hirt’s descendants seem to have managed both the reciprocal interinsurance exchange and the NY Stock-Market publicly traded attorney-in-fact (basically a tracking stock) with tremendous personal aplomb and business expertise.  But as to Tom Hagen’s assertion that “reciprocals” were conceived in Nov 1881: that is an aition [look it up - not a typo] that lacks only a mountain, two stone tablets and a bearded guy (I have also just climbed Jebel Musa on the Sinai;  and H O Hirt was not there.)  Enough mixed-metaphors.

Actually, reciprocal interinsurance is fully described in the Hammurabi Code, and was the exact mutual insurance mechanism used by Greek wine shippers from 600 BC on.  Corporate Joint Stock Insurers are a very recent phenomenon and even today very rare; and in any case can not predate the first corporation, qua corporation (the first joint stock corporation was the Stora Kopparberg mining community in Falun, Sweden, which obtained the first limited liability corporate charter from King Magnus Eriksson in 1347).  For those who have read Gilgamesh (which I have) will recognize the contained allusions to reciprocal interinsurance.  At Google Books there is even a highly academic study of Sumerian inflection (the language in which Gilgamesh was written) as applied to insurance fraud - right out of Gilgamesh!

The Sumerians in 6000 BC were already scamming their insurance syndicate attorney-in-fact (supra.) by sinking boats.

Reciprocal interinsurance was first codified in 800 BC’s Lex Rhodia:  which Tom Hagen must admit is the true basis for the very foundation of Lloyd’s of London - the general average.  Curiously and interestingly, the general average was first deployed to protect cargo owners whose property was thrown overboard to save a ship from floundering.  The general average holds that the owners of cargo not thrown overboard shall pay the the ones who suffered the loss of cargo to save the ship.  (Robert F McDermott understood the notion of “throwing things overboard”: when my family came to him with our NYC cooperative apartment home destroyed by an exploding steam pipe: and he threw the Koenig family under the bus.)

Tom Hagen’s assertion that reciprocal interinsurance was founded in NYC is ludicrous on the face.  Tom Hagen’s further assertion that a syndicate name doesn’t pay his several share of his own claims is just plain wrong.


C A Kulp, Casualty Insurance An Analysis of Hazards, Policies, Insurers, and Rates
 (3d ed.; New York: Ronald Press Co., 1956), pp 424

And Tom Hagen misses the true potential of reciprocal interinsurance: as to the present-day orthodox wings of Christianity, Judaism, and Islam and evangelical Christians.

The act of insuring, qua paying a premium to somebody else, is:

  1. Reprehensible and unlawful among the peoples of the Rhineland Palatinate (the brethren);
  2. Unlawful among Orthodox Jews;
  3. Unlawful among Muslims; and
  4. Distasteful among American evangelicals, for reasons they themselves can’t quite figure out as the codification of anti-insurance religious law in the early Jewish bazaars of pre-Christian Medina and Mecca predates the American evangelicals notions of the timing of the creation of the world.

Reciprocal interinsurance satisfies and overcomes all the tenets of pre-Christian Medina and Mecca thinking that have hobbled those communities in satisfying the Obamacare mandate.

In fact:  Christian faith-based health insurance could benefit tremendously from Tom Hagen’s expertise.

But even more directly:  reciprocal interinsurance is the only indemnification mechanism which satisfies Islamic law.

Get with it - Tom Hagen!  Get with the facts.

To paraphrase Sen Moynihan: Mr Hagen is entitled to his own opinion.  But Mr Tom Hagen is not entitled to his own facts.

Here is how Tom Hagen can now completely elevate Erie to the absolute highest moral high ground:

  1. Sweep all late check charges and other penalties into the Erie syndicate name deposit accounts.
  2. Look only to the contractual management fee for compensation:  and do not steal from the several liability deposit cookie jar which belongs, severally, to the syndicate names.
  3. Call in Erie’s auditors E&Y to test the accounts of the insurance syndicate for complete adherence to the duty to return to each particular syndicate name the portion of each particular syndicate name’s individual several deposit which is later ascertained to be excess to actual cost:

Where syndicate names acquire an interest in particular delayed or litigated claims:  supply those syndicate names with an exact accounting of what was reserved away from their deposit accounts and what is left over - in essence, a trustee accounting which must be settled and agreed upon with each syndicate name.

dr

cr

Temporarily deduct from individual syndicate name John Doe’s current deposit account 

.   .   .   . $10

Reserve for Claim in Litigation in syndicate name John Doe’s special long term deposit/sequester account 

 

.   .   .   .   .  .   .   .   .    $10

nb - Notation to syndicate name: A serious car accident in Chicago on February 2 2018 compels the syndicate manager to longer-term sequester $10 from your current refundable deposit account.  Your syndicate manger has decided (pro temp) to internalize that litigation reserve rather than immediately “selling” it to an external reinsurer.  You will not be getting that $10 back until the matter is disposed of and the actual cost later ascertained.



and then later when the “$10 matter” reserved for 
is settled for $5.

dr

cr

Settle claim from cash

.   .   .   .   .   .   .   .   .  .  $8.13

Recapture from John Doe’s long term deposit/sequester account

.   .   .   . $10

Add back to  syndicate name John Doe’s current deposit account

 

.   .   .   .   .  .    .   .   .    $1.87

nb - Notation to syndicate name: the Chicago crash for which we reserved away $10 from your current deposit has been settled. The actual cost has been later ascertained.    Settlement is dispositive as to the return of your share of what is left over after the settlement - which in this case is $1.87.


Where syndicate name long term deposit/sequester deposits are tapped to externalize the underwriting experience of a delayed or litigated claim - e.g.  through sale of a line item in the litigation portfolio: report those details, highly particularized, to the syndicate names so affected.

dr

cr

Recapture from Jane Doe’s long term deposit/sequester account

. .  .  . $10

Return to syndicate name Jane Doe in cash

.  .  .  .  .  .  .  .  .  .  .    $2.77

Purchase reinsurance from external carrier from cash

 

.  .  .  .  .  .  .  .  .  .  .    $7.23

nb - Notation to syndicate name:  4 years ago, we sequestered $10 from your deposit account when we learned of a serious auto accident in Chicago.  After 4 years of investigation and litigation, your personal individual several liability for this accident has been sold to Berkshire Hathaway - whose $7.23 open competitive bid was the lowest we received for you.  You are now off the hook: and we return to you the $2.77 left in the special bespoke reserve account.  Thank you for bearing with us until we were able to later ascertain the actual cost of this unfortunate acccident.

 

  1. If it turns out that syndicate name deposits have been mishandled - then I suggest a clean breast.  It may be that Tom Hagan and some of his relatives may have to report to a Federal Penitentiary in the matter.  

I do not want to hear any crap about the returning excess deposits being impractical or not possible:  that is simply not true.

He who borrows what isn’t hizzen - must pay it back or go to prison.

Oh - and I almost forgot.  Neither employees of nor corporate shareholders in the Hirt/Hagen family attorney-in-fact [11] should be a syndicate name at Erie Insurance Exchange [12] .  In other words - persons indemnified by Erie Insurance Exchange should themselves have no other connection to the business affairs of Erie Indemnity Company.


(Sorry for the quality here - this will be re-scanned and corrected. My physical records have been moved to a EU country which takes freedom of expression very seriously.  I have discovered that USAA’s thirst to subpoena hard-drives and confiscate personal property means that caution is indicated.)


In addressing the needs of syndicate names at an insurance syndicate, the syndicate manager’s ur-function is to bargain with the syndicate names to be chosen to be the syndicate manager for their insurance syndicate.

A syndicate name who already participates in an unincorporated reciprocal interinsurance exchange, where syndicate names take all the risk, would presumably be delighted to know of another insurance syndicate and a different syndicate manager with a lower risk profile, with a higher AM Best rating,  with lower management fees, and with a promise to not steal the litigation tails  [13].

No surer proof of the need to bargain with the syndicate names at an insurance syndicate is this news report about Farmers Insurance Exchange underwriting management fees from the 1960’s.

AAA, Erie, Farmers, USAA differ from Lloyd’s in that these four US-based insurance syndicates are organized as reciprocal inter-insurance exchanges.  Lloyd’s of London styles itself as an exchange:  but Lloyd’s is not a reciprocal inter-insurance exchange.  The “ultimate controlling entity at Lloyd’s, the General Fund,  is however a “mutual” (see chart, supra.).

More on exchanges:   Lloyd’s of London is also an exchange - where syndicates, through their managers, do actually bid for the privilege of underwriting and collecting premiums.

If USAA, Erie, AAA, and Farmers were truly exchanges:  there’d be some process of open-outcry and public bidding. In other words, syndicate managers would compete for the severally liable deposits from “the members”.

Insurance syndicates are exclusively and exhaustively distinguished from all other insurance companies by their sui generis several liability structure.

Surplus at insurance syndicates is always and only injected by the syndicate names:  and the liability of each syndicate name at AAA, Erie, Farmers, USAA, and Lloyd’s of London is several - not joint.

That is to say that the liability of each syndicate name at AAA, Erie, Farmers, USAA, and Lloyd’s of London is a personal, individual and non-corporate liability assumed by each syndicate name at AAA, Erie, Farmers, USAA, and Lloyd’s of London:  there is no corporate joint liability - and no corporate limited liability.  [14]

AAA, Erie, Farmers, USAA, and Lloyd’s of London are not corporations.

AAA, Erie, Farmers, USAA, and Lloyd’s of London are severalties.

Additionally, AAA, Erie, Farmers, USAA, are mutual insurance companies.  The ultimate controlling party at  Lloyd’s also mutual insurance company.

State Farm, Liberty, Nationwide, American Family, and Country are also mutual insurance companies.

But State Farm, Liberty, Nationwide, American Family, and Country are not insurance syndicates.  And the liability of the injectors of surplus at State Farm, Liberty, Nationwide, American Family, and Country is joint; not several.  THIS IS NOT CORRECT - THE LIABILITY OF THE POLICYHOLDERS AT A MUTUAL IS FIRST SEVERAL AND THAN PERHAPS JOINT.

The liability of all other non-mutual insurers [15] , as to the injectors of surplus, is a joint liability.  [16]

At Lloyd’s of London - the injectors of surplus  are known as syndicate names.  I find the term, severally liable syndicate names, to most fairly describe the status of the people who inject surplus at AAA, Erie, Farmers, and USAA.  That Stewart Blaine Parker and Lester Lawrence Lyles, and John H Moellering believe that such talk merits jailing:  well it’s a free country.  I am sure that they can find a lot of Judges who for a little cumshaw under the table will lock me up.  Locking up critics is a sport at USAA.

The measure of the benefits of injecting surplus at Lloyd’s differs from what the syndicate names at AAA, Erie, Farmers, and USAA reap.

Syndicate names at Lloyd’s of London are paid cash up front for the act of injecting surplus and underwriting a risk - e.g. a container ship.

In essence - syndicate names at Lloyd’s of London supply their personal balance sheets.  [17]

Upon underwriting a risk, the syndicate names at Lloyd’s of London each receives her several share of the premium which is paid into the syndicate.

But rather than injecting cash to substantiate their wherewithal to meet claims - syndicate names at Lloyd’s of London generally inject their several share of surplus by pledging assets or supplying letters of credit.

Syndicate names at AAA, Erie, Farmers, and USAA inject their exact separate, independent, individual and several share of the surplus in cash:  and syndicate names at AAA, Erie, Farmers, USAA are compensated not by a several share of premiums but rather with “valuable” indemnity contracts on their houses and cars.  It’s actually quite elegant.

The public policy benefit and implications can easily be extended to single-payer state -by-state Trump-care systems.  Imagine a blockchain distributed ledger which settles Vermont’s health care bill on a daily basis.

If you don’t think that Vermont’s daily healthcare bill, including reserving for each person who gets seriously ill, de novo, can’t be measured - think again.  There is no reason why Vermont cannot have a daily reckoning of the entire state’s healthcare bill for that day at midnight.   And there is no reason why citizen daily deposits  of surplus into the Vermont healthcare system can not be refunded if later ascertained to be excess to actual costs.  If communist pinko left-wing Bernie Sanders flyover country Vermont were to institute a  daily settlement of a blockchain to pay and reserve for that days healthcare underwriting experience (send it in):

  1. We should all buy stocks in orphan drug companies.
  2. Go to a London bookie and make a bet that cancer will be cured very quickly.

Put another way, if each VT citizen got a bill every night for her share of medical care for the willfully obese:  how long would obesity persist in VT?

Drinking, smoking, fast driving, drug addiction and all the elective illnesses would immediately cease.

Think about it.


nb:  there is no reason why syndicate names at AAA, Erie, Farmers, and USAA and the Vermont single-payer reciprocal interinsurance exchange can not inject their advance deposits of their exact separate, independent, individual and several share of surplus by means other than cash: e.g.,

  1. The offer of mortgages or other encumbrances on real estate;
  2. The hypothecation of securities;
  3. Money Center Bank Letters of Credit; and,
  4. The individual syndicate name’s general credit.

The core reason why the syndicate managers at AAA, Erie, Farmers, and USAA don’t encourage and facilitate the injection of several shares of surplus by means other than cash is because:

[read this very very carefully]  All fraud starts with these four words:  show me your money.

The reader is left to conclude on her own why all fraud at USAA, Erie, Farmers, and AAA starts with the four words - show me your money.

If you don’t understand, call me at +1.212.203.9712 and let’s arrange a little poker game.

Remember the old adage - if you’re at the poker table - and you don’t know who the sucker is  .  .  . : it’s you.

Why haven’t the insurance commissioners of Texas, California, in Pennsylvania, and in fact all the states explained to the citizens what the deal is at a mutual insurer.  Why does the NYS Insurance Commissioner:

Maria T Vullo

have absolutely no understanding that the essence of all mutual insurance is to return the deposits of surplus to the individual policyholder that are later ascertained to be excess to actual costs?

Here’s why:  in the words of Upton Sinclair (The Jungle):

"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"

At AAA, Erie, Farmers, and USAA:  the syndicate names are called members - as if they own something [bull shit]:

Each of the 2.5 million syndicate names at USAA;

Each of the 1 million or so syndicate names at Erie;

Each of the 2 million or so syndicate names at AAA; and,

Each of the 2 million or so syndicate names at Farmers;

own only a precise (to the penny) individual personal several liability at the beginning of each day that they supply surplus.  Their several liability is reduced every day by the exact amount of the claims they either pay or reserve for.


Now we get to the interesting part:

At Lloyd’s of London, when a syndicate manager over-reserves from the syndicate names - the excess premium is deemed excess to actual cost and returned ASAP to the syndicate names.  It’s returned that fucking day.

At AAA, Erie, Farmers, and USAA:  excess premium, for the most part, is stolen.  In any case - there is absolutely no accounting.

In case you missed that, here it is again:

The syndicate managers at AAA, Erie; Farmers, and USAA steal the premium which is excess to actual cost.


There is no law in any state of The Union which permits the syndicate managers at AAA, Erie,  Farmers, and USAA to steal the syndicate name deposits which are excess to actual costs.

Yet every insurance commissioner in every state of the union has actively and in some case aggressively promoted the theft of syndicate name deposits which are excess to actual costs.

Why is it (how is it) that the insurance commissioners seem almost to be partners - to be complicit - in the theft of syndicate name deposits which are excess to actual costs?

Each state insurance commissioner receives a direct formulaic cut of all deposits at USAA, Erie, Farmers and AAA - right off the top.  I have personal knowledge that Vermont Insurance Director has complete institutional scienter that the syndicate manager at USAA is pillaging the syndicate name deposit accounts of Vermont residents and he is completely unwilling to do anything about it. Simply put - he’s scared shitless of USAA:  with good reason.  There are four VT Judges, M Patricia Zimmerman, Helen Toor, Robert R Bent, and Robert R Kupfersmith are are biting at the bit to jail anybody in Vermont who talks about USAA’s unincorporated status and Stewart Blaine Parker’s and Lester Lawrence Lyles’  theft of syndicate name deposits which are excess to actual costs

Is there a law which requires the return of syndicate name deposits which are excess to actual cost?

Why - yes there is.  This is the law of the land as to the return of premium which is excess to actual cost

 Penn Mutual Life Insurance Co. v. Lederer, 252 U.S. 523 (1920)

It is of the essence of mutual insurance that the excess in the premium over the actual cost as later ascertained shall be returned to the policy holder.

Penn Mutual Life Insurance Co. v. Lederer is the law of the land.

The essence of Mr Justice Brandeis’ order is that there shall be an event when money left over after claims shall be returned:  later - when excess of premium over actual cost is later ascertained.

And that money shall be returned to the policyholder - not just any policyholder.

The timing of the return is not of the essence:  but that the excess premium shall be returned is of the essence.

Mr Justice Brandeis was not prolix:  and any child can clearly understand exactly what Mr Justice Brandeis meant.

Mr Justice Brandeis said:  it is of the essence of mutual insurance .  .  .  to return the sui generis risk capital of the mutual insurance enterprise which is later shown to have been unnecessary.

Mr Justice Brandeis’ order is not dictum.  It is not precatory or advisory language.  It is the fucking law of the land.

The Kabuki Accounting that USAA’s Stuart Parker permits Laura Ann Mahan Bishop seems to me to be a crime.


newaif.com addresses a problematic situation and huge opportunity at four insurance syndicates:  AAA; Erie; Farmers, and USAA.

In each case, the opportunity resolves to the benefit of all good-faith parties:

  1. At these four insurance syndicates, the syndicate names who supply all the surplus and who take all the risk, are insured by the reciprocal inter-insurance process:  neither ad personam nor in rem, but rather per processum.
  2. A new attorney-in-fact can honorably and ethically profit by operating an at-cost reciprocal insurance exchange.

USAA promises to do so - in the “greenfield advertising” it does at West Point which is USAA trout hatchery on the Hudson where USAA likes to fish for new syndicate names:


Unless I am fucking mistaken or the glasses the VA gave me after decorated combat service in Vietnam betray me  [18]: the above USAA ad says - All fucking savings are Returned to USAA fucking Members Upon Expiration of Policy. And then the ad, in fucking writ large says:  AT COST.


My aim is to “put into play” who gets to be the syndicate manager for these 4 insurance exchanges:

  1. AAA  [19]  [20]
  2. Erie  [21]  [22]
  3. Farmers  [23]  [24]
  4. USAA  [25]  [26]

What do I mean “to put in play”?

How does one put an insurance syndicate into play.  An insurance syndicate, even though it has no independent legal existence, is put into play by putting its syndicate names into play.

The operation of a insurance syndicate functioning as a reciprocal inter-insurance exchange is very very simple.

  1. Collect the deposits.
  2. Send out the reciprocal inter-insurance contracts.
  3. Pay the claims that can be immediately settled:  and deduct the payments from the syndicate name deposit accounts.

dr

cr

Permanently deduct from individual syndicate name John Doe’s current deposit account

.  .  .  .  $1

 Pay Claim

  . .  .  .  .  .  .  .  .  .  .  .  $1

  1. Reserve for the claims that can’t be settled immediately by funding litigation reserve accounts from the syndicate name deposit accounts.

dr

cr

Temporarily deduct from individual syndicate name John Doe’s current deposit account: subject to final settlement and and refund

. .  .  . $10

Reserve for Claim in Litigation in syndicate name Jane Doe’s special long term deposit/sequester account

 

.  .  .  .  .  .  .  .  .  .  .    $10

nb:  There is a completely legitimate process which can foreshorten the the effect of long term litigation on the syndicate manager’s duty to “return all premium which is excess to actual cost.

That is to purchase post-facto “reinsurance” and to transfer to financial liability for the outcome of litigation to a third party. The canonical example of such a transaction was Warren Buffett’s acceptance of AIG’s entire $3.6 billion asbestos liability litigation portfolio with an endowment of only $1.65 billion cash.  [27]

Transfer away of litigation liability done on an arm's-length basis can be very efficient:  and it can be very honest.


Transfer of litigation liability .  .  .  

See:  Reinsurance attestation.

  1. [under development is a discussion of the reinsurance attestation]
  2. The operation of an internal litigation portfolio is more problematic.

I am going to put this section on hold for a period.  I freely admit that there is a little of “Who Shot JR” to my purpose.  But the analysis of the mismanagement of USAA;s internal litigation portfolio by Josue J Robles over the years 1992 - 2012 was done in an environment of such willful blindness that it boggles the mind.   Willfulness continued unabated but blindness on the part of the directors (as a defense at  least) ceased abruptly in 2005 when I wrote each USAA director about my concerns.  Here is the proof that I wrote each of the fucking 14 putative directors on 18 November 2005  USAA directors, severally, by 2nd Day Priority Mail with Tracking Number and Proof of Delivery.

On November 27 2005, the USAA directors convened by phone, and the USAA directors voted en banque to jail me.

On December 8 2005, the USAA directors sent these two Nassau County Sheriffs to arrest me:


Deputy Sheriff Bill Miritello
Bill was sent our by cocksucking lawyer James O Druker to jail me on the basis of order sin the name of an entity which doesn’t even exist.


David D MacKintosh
David  was sent our by cocksucking lawyer James O Druker to jail me on the basis of order sin the name of an entity which doesn’t even exist.

and they conveyed me to the Nassau County Jail for 7 days where I was detained in solitary confinement, incommunicado.  Yup!  That is exactly what happened.

Are we done?  No!  Not quite yet.

And James O Druker, the lawyer for the putative USAA directors, then advised this sitting US District Court Judge who was herself a USAA syndicate name:

The Honorable Joanna M Seybert
District Judge
US District Court
Eastern District of New York
100 Federal Plaza
Central Islip NY 11722
+1.631.712.5610
+1.631.712.5615

 

in writing, that I’d not be pursuing my fully served and noticed legal action in her US District Court because I was on an extended vacation.


The Five Big Corporate Mutual Insurers
How do they differ:  Do they differ?

When Robert G Davis, John H Moellering and Laura ann Mahan Bishop, the operators the USAA insurance syndicate, became aware in 2002 that I was studying their retention and filching of syndicated name deposits  that were excess to cost:  they became very concerned. Actually, they went bat shit.

There was already blood on the ground and Robert G Davis, John H Moellering and Laura Ann Mahan Bishop didn’t like the trail I was hunting on.

A middle level soldier at USAA, one Duane Divich, with what I believe was criminal intent, had denied our family’s substantial claim for costs to repair the damages to our NYC Coop when a steampipe external to our leased apartment exploded. This same Duane Divich then went on to inflate and bloat a vapor-claim for $150 of auto-damage by some fucking USAA associate member I never even met into a $505 claims settlement [28] that we were never told about.  We only learned that Duane Divich had inflated the vapor-claim from $150 to $505 a full year later when we saw the surcharge on our statements.  To extract a surcharge, Divich had to inflate the claim to over $500.  I explained my belief to Divich that he had engaged in fraud by inflating the claim - and Divich went ballistic [actually fucking drool-at-the-mouth ballistic].

Divich, in writing, then proceeded to extort my wife who was a licensed securities broker working in trusts and estates.  Divich accused us - both my wife and me - of insurance fraud.  This was a very very serious and intemperate charge:  intended only to intimidate and silence us.

[5 years earlier, Duane Divich had committed another of his SNAFU’s by reporting to our mortgage holder at our prior home in Montclair NJ that we had not injected our required several share of surplus as to the insurance contract required by our mortgage agreement.  As the reader can surely imagine - USAA promulgate this lie without any advance notice to us:  and of course our payment status with USAA was 100% perfectly in order.  GEN Wilson Cooney’s letter of apology is a matter of record - but even GEN Cooney’s gas-light letter - in that way that it only USAA seems to know how - still blamed blame my family for USAA’s failure to credit our surplus account.]


So - let’s go back to the five big corporate mutual insurers whose surplus is not the deposited several liability of the contract holders but rather joint - or is it?:

Prepare to be surprised.

[to be continued .  .  .  ]


Exhibit “A”:  USAA’s putative Directors - all natural persons  [annotations as of January 11 2018 at 1439 GMT]

Name  [36]

(alphabetically by last name)

Year of Departure  [37] and Estimated total compensation:

Photo

Address

# 01:
John P Abizaid

Elected 2007

Est. total compensation: $2,000,000

John P Abizaid
JPA Partners, LLC

1919 Currant Court

Gardnerville NV 89410

+1.775.782.3012

info@jpapartners.com

http://www.jpapartners.com

# 02:
Joseph B Anderson

Elected 1999 [38]

Est. total compensation:
$200,000

Left Board [   ]

Left very quickly:  and there must be a story there. 

TAG Holdings LLC

30260 Oak Creek Dr.

Wixom MI 48393

# 03:
Patricia C Barron

Elected 2000  [39]

Est. total compensation:
$5,000,000

Patricia C. Barron

Thomas Clark Barron

159 E 78th Street

New York NY 10075-0405

Thomas C Barron

60 Appletree Road    

Esopus NY 12429

+1.845.384.6703

# 04:
Herman E Bulls

Elected 2010

Est. total compensation:
$3,000,000

Herman E Bulls
Vice Chairman, Americas
Jones Lang LaSalle

International Director & Chairman, Public Institutions

Jones Lang Lasalle

1801 K St. NW, STE 1000

Washington DC 20006

# 05:
John D Buckelew

Elected 1994 [40]

Est. total compensation:
$______________

Left Board:  

John D Buckelew

3700 Baron Cooper Pass

Raleigh NC 27612

+1.919.787.6919

# 06:
Thomas P Carney

Elected 1997 [41]

Est. total compensation:
$______________

Left Board:

Thomas P Carney

9806 Kirktree Court

Fairfax VA 22032

+1.703.591.8282

# 07:
Daniel W Christman

Elected 1995  [42]

Est. total compensation:
$______________

Left Board:

Daniel W Christman

601 N Fairfax Street Apt 415

Alexandria VA 22314

# 08:
Eileen M Collins

Elected 2007

Est. total compensation:
$2,500,000

Eileen Marie Collins

2024 Pebble Beach Drive

League City TX 77573

+1.281.334.2107

# 09:
Daniel L Cooper

Elected 1988
Est. total compensation:
$______________

Left Board:   [         ]

Daniel L Cooper

Willow Valley Retirement Community

600 Willow Valley Square

Lancaster PA 17602

#10:
Stephen B Croker

Elected 1996  [43]

Est. total compensation:
$______________

Left Board:  [ 2011 ]

Stephen B Croker

Senior Vice President

Nyack Management Company, Inc.

774 Mays Blvd., Suite 10, PMB #324

Incline Village NV 89451-9613

lou@nyackco.com

+1.914.643.9637

fax: +1.775.833.9797

home:

Stephen & Virginia Croker

2 Byford Court

Chestertown MD 21620

+1.410.778.1199

#11:
Clyde D Dean

Noted as serving on the 1989 USAA Annual Progress Report

Died Dec 23, 2001

#12:
Leslie G Denand

Elected 1996  [44]

Est. total compensation:
$______________

Left Board: [        ]

#13:
Thomas Boulton Fargo

Elected 2006

Est. total compensation:
$3,000,000

Thomas Boulton Fargo

TREX Enterprises Corporation

733 Bishop St, Ste 1717,

Honolulu, HI 96813

+1.808.521.4908

fax:  +1.808.521.4906

☒☒

#14:
Tracy L Garrett

Elected 2010

Est. total compensation:
$1,250,000

#15:
Fred A Gorden

Elected 1990

#16:
Frederick M Hamilton

Elected 1998 [45]

Est. total compensation:
$______________

Frederick M Hamilton

625 Whitetail Drive

Lewisberry PA 17339-9403

+1.717.932.4777

fax: +1.717.932.4775

#17:
Marcelite J Harris

Elected 1993  [46]

Est. total compensation:
$______________

Left Board: [        ]

Marcelite J Harris

1377 Otter Lane

Merrit Island FL 32953

+1.321.454.3845

#18:
Jesse J Hernandez

Noted by name in “USAA 1988/89 Annual Progress Reports”.

Left USAA Board in 1989 after two years of service  [47]

Jesse J Hernandez

Portfolio Manager

Toth Financial

608 South King Street

Suite 300

Leesburg VA 20175

+1.703.443.8684

fax: +1.703.669.4577

jesse@tothfinancial.com

#19:

Robert T Herres [RIP]

Estate of Robert T Herres
℅ next friend
Reid E Meyers Esq

11118 Wurzbach Road

San Antonio TX 78230-2595

#20:
Homer J Holland

Elected 1985

Est. total compensation:
$2,000,000
Left in 1994  
[48]

http://www.secinfo.com/dRqWm.883z.htm 

Homer J Holland

7715 E Old Paint Trail  

Scottsdale AZ 85262

+1.480.488.3532

Homer J Holland
Board Member and Chairman of the Loan Committee
Bridgeforth Capital LLC
Newport Beach CA

Homer J Holland’s photo appeared only once at USAA: in the “1994 Annual Progress Report.  This may be another photo:

#21:
Randolph W House

Elected 1994

Est. total compensation:
$______________

Left Board [before 2000]

Randolph W House

905 Carmel Pl

College Station TX 77845

+1.979.485.8637

#22:
William J Hybl

Elected 1994 [49]

Est. total compensation:
$______________

Left Board after 2008]

William J Hybl

10 Lake Circle

Colorado Springs CO 80906-4201

+1.719.579.9646

#23:
Hansford T Johnson
(USAA employee)

Appeared in  1994 [50] 

Est. total compensation:
$______________

Left Board [before 2000]

#24:
Jay L Johnson

Elected 2000  [51]

Est. total compensation:
$4,000,000

Reelected

#25:
Rear Admiral Mary E. Landry
 (United States Coast Guard Retired)

#26:
Carl Clinton Liebert III

Elected 2011

Est. total compensation:
$500,000

Left Board ca 2012 to join Executive Staff

#27:
Lester L Lyles

Elected 2004

Est. total compensation:
$10,000,000

Lester Lawrence Lyles
1703 Burlwood Court  

Vienna VA 22182

+1.703.242.3903

#28:

Robert Frances McDermott [RIP]

Estate of Robert F McDermott
℅ R F McDermott Jr Esq
Jones Day

51 Louisiana Avenue NW

Washington DC 20001-2113

+1.202.879.3875 (o-direct)

#29:
Tracy B McKibben

Tracy B McKibben

100 Riverside Blvd #3D

New York NY 10069
+1.347.467.1162

#30:
Richard D Milligan

Elected 1988

Est. total compensation:
$2,000,000

Left Board 1994

#31:
John H Moellering

Elected __________

Est. total compensation:
$6,000,000

Left Board ca 2012


As Lord Shiva

John H Moellering

50130 Manly

Chapel Hill NC 27517

+1.919.933.0979 (office)

+1.919.933.9374 (home)

#32:
Gerald R Murray
Chief Master Sergeant of the Air Force (ret)

Gerald R Murray

Director

Enterprise Sustainment

Lockheed Martin Aeronautics

Hill Air Force Base

  • Elder, LDS

#33:
Stuart Blain Parker

Stuart Blain Parker

16 De Zavala Pl

Shavano Park TX 78231-1446
Stuart Blain Parker

16 De Zavala Pl

Shavano Park TX 78231-1446

+1.210.492.1652

+1.803.767.8739 (cell)

#34:
Denton Louis Peoples
(deceased)

Elected 1996  [52]

Est. total compensation:
$______________

Left Board [        ]

#35:
William R. Reed Jr.

William R Reed

700 June Dr  

Somerville TN 38068

William R Reed

144 Greendale Dr

Jackson TN 38305

#36:
Josue Robles Jr

Elected 1990

Est. total compensation:
$600,000

Left Board 1993 and did not appear as a director in the 1994 USAA Annual Progress Report.

Josue Robles Jr

34 Royal Gardens Drive

San Antonio TX 78248

+1.210.479.1716 (home)

alternative:

15822 Mission Rdg.

San Antonio, TX 78232

+1.210.545.1406

#37:
Michael E Ryan

Elected 2002

Est. total compensation:
$3,000,000
Left Board 2014

Michael E Ryan

Chairman of the Board

CAE USA

4908 Tampa West Blvd.

Tampa FL 33634

+1.813.885.7481

fax: +1.813.901.6429

milsim@cae.com

#38:
Joseph C Strasser

Elected 1998  [53]

Est. total compensation:
$3,000,000

Left Board ca 2012

Joseph Strasser

62 Sea Meadow Drive

Portsmouth RI 02871

#39:
Charles F Stebbins

Elected 1986

Est. total compensation:
$______________

Left Board [       ]

#40:
Robert van Antwerp

Elected __________

Est. total compensation:
$______________

Left Board [       ]

Robert van Antwerp

Chief of Infrastructure and Executive Development

The Flippen Group

1199 Haywood Drive

College Station TX 77845

+1.979.693.7660

fax: +1.979.693.4737

www.theflippengroup.com

#41:
Sam W Westbrook III

Elected 1986

Est. total compensation:
$______________

Left Board [        ]

#42:
Kent H Williams

Elected 1988

Est. total compensation:
$______________

Left Board [        ]

#43:
Myrna H Williamson

Elected 1988

Est. total compensation:
$______________

Left Board [        ]

#44:
John F Young

Elected __________

Est. total compensation:
$______________

Left Board [        ]

John F Young

Energy Future Holdings

Energy Plaza

1601 Bryan Street

Dallas TX 75201 USA

+1.214.812.4600

John F Young

3712 Marquette Street

Dallas TX 75225-5127

+1.214.987.4747

#45:
James M Zortman

Elected __________

Est. total compensation:
$______________

Left Board [        ]

James M Zortman

Northrup Grumman

2980 Fairview Park Drive

Falls Church VA

+1.703.280.2900

James M Zortman

8005 Stewarts Wharf Road

Exmore VA 23350-3821

+1.757.442.4036


Exhibit “D”:  Putative USAA Bylaws


Exhibit “_”:  AAA Reinsurance Attestation for 2014



Exhibit:  Koenig May 10 2018 request for Zurich 2017 Annual Report


Obsolete 19 feb 18

<iframesrc="https://docs.google.com/document/d/e/2PACX-1vSk6ZCz_v_Ojf15UqfwSOBF6g4KPzcnk4nfdUY316F3PXDwwphsMIxuKF61S3ygxXua30lVO7oxeqbV/pub?embedded=true"></iframe>

https://docs.google.com/document/d/1zlG3IfxoV1M1OUUpNymPR1uStEap12Iv_pWmWg0uPsk/edit 

http://newaif.com/ 

http://newaif.com/load_newaif-com_php/load_newaif-com.php 



MOBBING

Students of insurance industry claims settlement practices may appreciate (or not) my views at:

http://compartmentalizedfraud.com/fraud_usaa_systemic/mobbing 

Mobbing” is the practice of sending out a platoon of willfully uninformed adjusters and claims settlement clerks to so completely fuck-up a claim that it becomes unrecognizable as an insurable event. Robert F McDermott, the fucking “insurance scholar” who ran fucking USAA, wrote the fucking book on “mobbing”.

Read my article about the 20 or so USAA clerks, the 30+ lawyers, and 20+ judges who helped USAA evade a simple straightforward claim  - it will astound you.  When I objected to the practice - USAA’s Robert G Davis jailed me in Nassau County New York for 7 days until corrupt NY Supreme Court Judge Robert Roberto extorted $25,000 from my children to let me go.  It’s a great story actually.  McDermott is no longer on this side of the sod:  I bet he is laughing.  If I’d been smarter - I’d have figured it out sooner.



<iframe src="https://docs.google.com/document/d/e/2PACX-1vSdYuuYmQk790KsQ-ZWDlsu4KzZ_AQ4heTekyztefXziCSU8AzuuqA2VZMl5JalW8LdqtBC0LWwMVQB/pub?embedded=true"></iframe>

https://docs.google.com/document/d/1zlG3IfxoV1M1OUUpNymPR1uStEap12Iv_pWmWg0uPsk/edit 

http://newaif.com/index.html 

http://newaif.com/load_newaif-com_php/load_newaif-com_w_ip_address.php 


[1]  Permission to use the content of this article is freely granted so long as this citation and intellectual property reservation is supplied:

Substitutions of new Attorneys-in-Fact by Robert J Koenig, self-published at http://www.newaif.com,  New York NY 2018    © 2018 Robert J Koenig https://www.linkedin.com/in/robertjkoenig/ 

[2] Interinsurance Exchange of the Automobile Club; NAIC # 15598;  FEIN:  95-0865765;  California Company ID (CA DOI) 0392-1;   Certificate of Authority [CofA] granted to commence inter-insuring by reciprocal contract on October 4 1912

[3] Erie Insurance Exchange; NAIC # 26271; FEIN 25-6038677; Certificate of Authority [CofA] granted by the Pennsylvania Insurance Department [PID] to commence inter-insuring by reciprocal contract on 20 April 1925

[4] Farmers Insurance Exchange:  NAIC # 21652;  FEIN 95-2575893; California Company ID (CA DOI) 0937-3;    Certificate of Authority [CofA] granted to commence inter-insuring by reciprocal contract on 06 April 1928

[5] United Services Automobile Association; NAIC # 25941; FEIN  74-0959140; TDI Company Number 14-86800; Current TDI Certificate of Authority  [CofA]  # 14585 granted on April 2 2008: an unincorporated insurance syndicate organized as a Texas reciprocal inter-insurance exchange.

Unlawfully commenced inter-insuring by receipt of a syndicate name's deposit against a reciprocal contract on either June 20 or June 22 1922. First one year license (expired February 28 1926) to commence inter-insuring by reciprocal contract granted on or slightly before March 23 1925 (two and nine years after USAA's unlawful 1922 "receipt of a first deposit from a "syndicate name".

[6] The tremendous difficulty I have in dealing with the issue of the unincorporated status of reciprocal interinsurance exchanges flows from some very bad personal experiences just talking about it.  When on December 13 2005 I published my views about a not-incorporated USAA on Wikipedia - reporting the simple fact that USAA was unincorporated - Robert Gilchrist Newman Esq, Michael T O’Donnell Esq, James O Druker Esq, New York State Supreme Court Judge Peter B Skelos, New York State Supreme Court Judge Robert Roberto, New York State Supreme Court Judge Daniel R Palmieri, and US District Court for Eastern NY  Judge Joanna Seybert (a USAA member herself) and US District Court Judge Joanna Seybert’s husband, 20-year USAA career staff-lawyer John Robert Seybert, immediately jailed me in Nassau County and extorted $25,000 from my children to let me out.  On reflection, unincorporated and not-incorporatable are not terribly meaningful terms in the context of reciprocal interinsurance exchanges.

After the jailing, maybe what I should have been saying in December 2005 when USAA’s Robert G Davis  and Moellering arrested me and imprisoned me incommunicado in the Nassau County New York jail was that USAA has no separate legal existence from that of its ~ 2.5 million syndicate names.   Jailing me of course proves the bribery-induced criminality of New York State Supreme Court Judge Robert Roberto who signed the order to imprison me.   Judge Robert Roberto knew 100% that United Services Automobile Association [the captioned party seeking the jailing] was not a real party in interest;  Judge Roberto knew that Robert G Davis and his $600,000 mistress Dawn Johnson, John H Moellering, Laura Ann Mahan Bishop, Josue J Robles Jr, et al. were the real parties in interest. But USAA’s failure to qualify as a real party in interest is less important, legally, than the fact that cocksucker Jüdischer Ordnungsdienst USAA lawyer James O Druker could never have qualified USAA as a fucking party, much less a real party:  that’s because United Services Automobile Association has no separate legal existence and there was no actual USAA member present in fucking Judge Robert Roberto’s fucking courtroom on fucking insurance syndicate business. And just as self-dealing Stewart Blaine Parker and self-dealing Lester Lawrence Lyles do today: these people and their lawyers hi-jack the name of an entity which has no legal existence and turn the TX Bexar County District Court in a private Sharia Court, a Jirga, in order to stop me from speaking about USAA’s unincorporated status.nd the extortion of $25,000, my discussion and analysis of Robert G Davis’ status as no more than a bailee of the $30,000,000,000 belonging to the 2.5 million USAA members continued.

In 2008, the relentless harassment of my family then moved on to Vermont.  At the importuning of USAA lawyer criminal James O Druker Esq, a Vermont lawyer named Sam Hoar collected a huge fee stolen from the USAA members and took up the cudgel against my children in Vermont before these four cud-chewing and bovine Vermont Judges:  Helen M Toor; M Patricia Zimmerman; Michael S Kupersmith; and Robert R Bent.   These four judges ordered lawyer San Hoar to nail [sic] huge packets of legal documents on the actual very front door of my eldest daughter’s place of employment - Black River Design in Montpelier VT (can you fucking believe that).


My personal 24x7 cell phone number is +1.212.203.9712.  If I am wrong on any of these facts - please pick up the phone and/or text right away (calls with caller id only, please:  no Stewart Parker/Lester Lyles no-caller-id thugs please):  they bore me. And they bore my children who have become pretty well inured to Stewart Blaine Parker’s and Lester Lawrence Lyles’ thugs.  In fact - both Stewart and Lester can sod off.

[7] Erie Indemnity Company; FEIN 25-0466020;  PA SOS Entity # 112672;  SEC File Number 0-24000  CUSIP 29530P-102; Incorporated  April 14 1925

[8] Farmers Group Inc; FEIN 95-0725935; NV Entity C1096-1927 Incorporated 17 Oct 1927; CA [foreign] Entity C0126554

[9] USAA Reciprocal Attorney-in-Fact Inc; FEIN 17-422882948; TX SOS # 67180700; Incorporated September 16 1983.   USAA Reciprocal Attorney-in-Fact Inc assumed the status of Attorney-in-Fact for United Services Automobile Association in 2008.

[10] Interinsurance Exchange of the Automobile Club; NAIC # 15598;  FEIN:  95-0865765;  California Company ID (CA DOI) 0392-1;   Certificate of Authority [CofA] granted to commence inter-insuring by reciprocal contract on October 4 1912

[11] Erie Indemnity Company; FEIN 25-0466020;  PA SOS Entity # 112672;  SEC File Number 0-24000  CUSIP 29530P-102; Incorporated  April 14 1925

[12] Erie Insurance Exchange; NAIC # 26271; FEIN 25-6038677; Certificate of Authority [CofA] granted by the Pennsylvania Insurance Department [PID] to commence inter-insuring by reciprocal contract on 20 April 1925

[13] e.g., the syndicate manager would explicitly promise to not plunder the excess reserves after litigation was settled and otherwise delayed indemnification payments were complete.  In the UK there is no need to encourage the syndicate managers at Lloyd’s to return syndicate name deposits which are later ascertained to to be excess to actual costs.  There is a prison in London called Wormwood Scrubs which is where they put Lloyd’s of London syndicate managers who don’t immediately return syndicate name deposits which are later ascertained to to be excess to actual costs.  In the USA - as we all know - returning property that belongs to others is precatory.

[14] There is, however, a limited liability conferred on the syndicate names by operation of California, Pennsylvania, and Texas statute and insurance code - the three states in which AAA, Erie, Farmers, and USAA are variously domiciled.  Syndicate names should probably take care to determine if ultra vires activities, especially at USAA,  might expose them to unlimited personal joint liability. If, for example, USAA were to run into headwinds:   I can see the syndicate names who have engaged in massive secular self-dealing (e.g. the USAA directors) being charged with extensive bankrupting personal obligations to restore about $20,000,000,000 which seems to have gone missing.  Every USAA director has personal knowledge that Robert F McDermott threw my family under the bus:  maybe they’ll enjoy bankruptcy.  If Stewart Blaine Parker and Lester Lawrence Lyles do indeed have a bona fide fair value opinion from a competent investment banker that the investments in USAA Federal Savings Bank, USAA CIC, et al have a recognized value:  then let’s see that fair value opinion.

[15] There is no requirement that these other non-mutual insurers be corporations.  But for the most part - they appear to be corporations.

[16] Having made this categorical statement, I will now reverse myself.  The manner in which claims at corporate mutuals are actually paid/reserved expresses a liability that behaves  more several than joint.  Still - the legal liability on the part of the suppliers of surplus to pay claims on any given day is joint and not several.

[17] This business of unlimited liability at Lloyd’s of London is a much misunderstood concept.  A USAA paid Wikipedia shill stepped into it when he was shutting down a Wikipedia article I wrote on the Insurance Syndicate.  Jimbo Wales who runs Wikipedia has evidently been “paid” to prevent Wikipedia articles on the nature of Insurance Syndicates. While a Lloyd’s of London syndicate name may place his entire balance sheet behind his membership in a syndicate or syndicates:  his liability with respect to a particular insurance syndicate is a precise several liability.  What that means is that the Lloyd’s of London syndicate name has no joint liability to make up for the unpaid share of an insurance settlement that was owed and defaulted on by another syndicate name. That leads to a curious outcome if a ship owner doesn’t get 100% paid:  the ship owner must sue the particular Lloyd’s of London syndicate name who defaulted - there being no joint liability.  The insurance syndicate has no separate legal existence and thus may not be sued.  Roby v Lloyd's; 996 F.2d 1353, 61 USLW 2796, Fed. Sec. L. Rep. P 97,458, RICO Bus.Disp.Guide 8307, 1993 U.S. App. LEXIS 13089.

[18] A distinct possibility?

[19] Interinsurance Exchange of the Automobile Club; NAIC # 15598;  FEIN:  95-0865765;  California Company ID (CA DOI) 0392-1;   Certificate of Authority [CofA] granted to commence inter-insuring by reciprocal contract on October 4 1912

[20] The attorney-in-fact for AAA is:

ACSC Management Services Inc; FEIN 95-2553663;  CA SOS Entity # C0547606; Incorporated June 17 196

[21] Erie Insurance Exchange; NAIC # 26271; FEIN 25-6038677; Certificate of Authority [CofA] granted by the Pennsylvania Insurance Department [PID] to commence inter-insuring by reciprocal contract on 20 April 1925

[22] The attorney-in-fact for Erie is:

Erie Indemnity Company; FEIN 25-0466020;  PA SOS Entity # 112672;  SEC File Number 0-24000  CUSIP 29530P-102; Incorporated  April 14 1925

[23] Farmers Insurance Exchange:  NAIC # 21652;  FEIN 95-2575893; California Company ID (CA DOI) 0937-3;    Certificate of Authority [CofA] granted to commence inter-insuring by reciprocal contract on 06 April 1928

[24] The attorney-in-fact for Farmers is:

Farmers Group Inc; FEIN 95-0725935; NV Entity C1096-1927 Incorporated 17 Oct 1927; CA [foreign] Entity C0126554

[25] United Services Automobile Association; NAIC # 25941; FEIN  74-0959140; TDI Company Number 14-86800; Unlawfully commenced inter-insuring by receipt of a syndicate name's deposit against a reciprocal contract on either June 20 or June 22 1922.  Current TDI Certificate of Authority  # 14585 [CofA] granted on April 2 2008.  Original CofA granted to commence inter-insuring by reciprocal contract on or slightly before March 23 1925 (two and nine years after its unlawful 1922 "receipt of a first deposit from a "syndicate name".

[26] The attorney-in-fact for USAA is:

USAA Reciprocal Attorney-in-Fact Inc; FEIN 17-422882948; TX SOS # 67180700; Incorporated September 16 1983

[27] http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/8464624/AIG-offloads-3.5bn-asbestos-risk-to-Warren-Buffetts-Berkshire-Hathaway.html

[28] The claim is a mini-story in itself.  It involved a claim of $450 damage and a bill for an entire repaint to a salvage-title rebuilt 10 year old Subaru which was in fact owned by the son of a USAA syndicate name.  This son of a USAA member had already tied up every adjuster and insurance company in the NorthEast Kingdom of Vermont for years with all manner of strident but dubious claims.  A business decision to buy this guy off was certainly within Duane Divich’s purview - as long as he didn’t go over $500 and sneakily try to have my family be the “ATM for his little fraud”. So Duane Divich was caught with his little hand in the cookie jar:  I caught Duane Divich inflating a claim for an event that never happened to over $500 which permitted a charge-back to our future deposits.

[29]   State Farm Mutual Automobile Insurance Company NAIC 176-25178  FEIN #: 37-0533100 Incorporated as a P&C Domestic Mutual - Chartered by IL DOI March 29 1922.

[30]   Exactly who owns the somatic mechanism(s) by which State Farm Mutual operates is a mystery, wrapped in a riddle, and further entwined in an enigma.

[31] Liberty Mutual Insurance Company NAIC 0111-23043 FEIN 04-1543470.  I am told that Liberty was a product of MA 1912 workers compensation laws and was founded by General Electric.

[32] It is not possible to determine either “who owns” the manager or “who is” of Liberty Mutual.

[33]   Nationwide Mutual Insurance Company NAIC 0140-23787 FEIN 31-4177100 Incorporated as the Farm Bureau Mutual Automobile Insurance Company on December 17 1925. 

[34]   American Family Mutual Insurance Company NAIC 0473-19275 FEIN 39-0273710 Wisconsin DOI # 110719 Incorporated January 1 1927 Issue date of Certificate of Authority September 19 1927.

[35] Country Mutual Insurance Company NAIC 0050-20990 FEIN 37-0807

[36] USAA was listing directors’ names on the inside back page of the “1988 USAA Annual Progress Report”; which is the earliest I have.  Photographs and biographies first appeared in the “1994 USAA Annual Progress Report”.

[37] USAA “directors” leave without fanfare:  so the year of departure must be fixed by a reading of the “Annual Report” which no longer “contains” them.

[38] Report to Members 2000, p. 34.

[39] Report to Members 2000, p. 34.  nb:  Her “election” required the 1999 amendment to the Bylaws.

[40] Report to Members 2000, p. 34

[41] Report to Members 2000, p. 34

[42] Report to Members 2000, p. 34

[43] Report to Members 2000, p. 34.

[44] Report to Members 2000, p. 34

[45] Report to Members 2000, p. 34

[46] Report to Members 2000, p. 34.

[47] Toth Financial Biography notes two years of service on the USAA Board.

[48] Homer J Holland does not appear in the 1995 Annual Progress Report

[49] Report to Members 2000, p. 34.

[50] Hansford T Johnson is shown on the 1994 Annual Report - but without an election date.  He was also a USAA employee.

[51] Report to Members 2000, p. 34.

[52] Report to Members 2000, p. 34.

[53] Report to Members 2000, p. 34.