Gilbert v. Equitable Life Insurance

Plaintiff appeals from an adverse judgment in his declaratory relief action.

Plaintiff became a general agent of defendant in 1955. Previously, he had been an agent of another general agent of defendant since April 15, 1949.

On July 26, 1955, the parties entered into a written “Organization Allowance Agreement” (O.A.A.) which provided in part as follows: “To assist second party in developing and maintaining his general agency and servicing policyholders, first party will remit second party an organization allowance payable at the end of each month in the amounts and for the periods indicated. ...”

The allowance was to be in the sum of $416 per month for the first year, and in lessening amounts thereafter until the fifth year, during which time it was to be $137.48 per month and then terminate.

The agreement then provided: “In event of the termination of the principal contract, or any succeeding General Agency contract, within six years from the effective date of this agreement, except by reason of the death or total and permanent disability of second party as adjudged by first party, said second party shall then become indebted to first party for any and all organization…