When I heard that Jerald L. Tillman, founder of the National African-American Insurance Association, was locked in an ugly battle with his former carrier, Nationwide Insurance, over his disputed termination, my assessment as an editor was that if there were almost any other agent involved, this wouldn't be national news. But because racial diversity is so sorely lacking in the insurance industry, this becomes a huge story.
I've known Mr. Tillman for just about my entire 26-year career at National Underwriter. He's a dynamic fellow who has devoted a big chunk of his life to the often frustrating cause of diversifying the insurance business.
The organization he founded, according to its Web site, "was organized to create a network among minorities who are employed by insurance companies or self-employed in the insurance industry." The NAAIA's mission is to help
African-Americans in the industry keep in touch, and to exert influence on insurance-related areas.
It's been an uphill struggle, to be sure. And Mr. Tillman has long been at the forefront of that noble effort.
That's why it was so difficult to accept the notion that Nationwide terminated him for alleged contractual violations, with his appeal unsuccessful. Mr. Tillman contends that the dispute is over a single mishandled auto policy. (You can read all the details by clicking here.)
I find it hard to believe that Mr. Tillman's career could be jeopardized by such a seemingly innocuous incident. But while Nationwide won't discuss its justification in any detail, it did hint ominously to NU that there was more to the termination--but then refused to comment further publicly.
In essence, Nationwide is daring Mr. Tillman to take them to court if he thinks he can convince a judge or jury to overturn their decision. That might yet happen.
Meanwhile, Mr. Tillman has been publicizing his predicament with a letter to his fellow independent contractors, contending that "Nationwide is completely wrong in their conclusions and assumptions” about him, and warning that something similar “can happen to you in an instant without notice, simply based on one’s opinion.”
Besides coverage in this week's NU, and now on this blog, Mr. Tillman has generated a lot of press about his problem, including a front-page, lead story in The Northern Kentucky Herald of Dec. 1, with the less-than-objective headline: "When the Bottom Falls Out: Popular Agent Unjustly Terminated After 27 years."
Nationwide is not unaware of Mr. Tillman's media efforts.
“The company stands by its decision and strongly disagrees with the representations made by Mr. Tillman with regard to the events and circumstances surrounding the cancellation of his independent contractor relationship with Nationwide,” the company said.
The carrier added that “it is regrettable that Mr. Tillman continues to spread baseless allegations against Nationwide and its employees. It is unfortunate that a long relationship had to end in this manner.”
Frankly, since I know Mr. Tillman personally, my sympathies tend to fall with him. I can't help but give him the benefit of the doubt in the absence of more concrete evidence of wrongdoing, which Nationwide claims it has--but has chosen to keep private. Their silence might not be the best policy, since all we're hearing right now is Mr. Tillman's side of the story--and if that's all there is to it, termination seems extreme.
Of course, the race factor has inevitably been raised. When asked whether race might be an issue here, Mr. Tillman told NU that, “I think a white man would have received a courtesy call to talk about this and find out what happened. It doesn’t make sense.”
However, a Nationwide representative said the carrier "strongly denies Mr. Tillman’s claims of racial discrimination.” And even his own attorney, Charles McKinney--while stating that he believes his client has reason to seek legal redress--has not yet argued that the incident was racially motivated, nor that race would be a basis for legal action.
If anything, he told NU, a lawsuit would be based on the fact that the incident does not meet the test for egregious behavior that should result in dismissal. (That is, unless there are other incidents Nationwide isn't revealing.)
Mr. Tillman says he is being denied payment of his premium equity for his years of service because he has refused to sign a nondisclosure agreement. Had he signed such a disclosure, you wouldn't have seen a story in NU, nor this blog commentary.
I hope for the sake of both parties, but especially for Mr. Tillman, that something can be worked out short of a lawsuit. Mr. Tillman has done too much fine work for the industry's own good to be dumped unceremoniously on the pavement.
But the bigger issue, in my view, is the reason why this dispute is national news at all. That is--because there are relatively so few African-American insurance agents (or company executives, for that matter) that any time a person of color is the subject of some controversy, it becomes a major story. When it involves the founder of the National African-American Insurance Association, it becomes a huge story.
And this will continue to be a huge story until diversity makes more headway in the insurance business. That's the biggest story here.
What do you folks think?
Comments (3)
I think that the lawyers and executives at Nationwide were perfectly well aware of the "race card" that you have now played for Mr. Tillman. They aren't stupid.
Therefore, the decision to terminate him wasn't lightly made, nor for reasons of racial bigotry.
Let this business dispute play itself out without prejudging either side.
SAM RESPONDS:
I wasn't attempting to prejudge either side, although since I have known Mr. Tillman for a quarter-century and seen first hand all the good he has done for the business, he has earned the benefit of the doubt.
However, my main point was the fact the dismissal of a single Nationwide agent is newsworthy at all. It's because of the glaring lack of diversity in the insurance business.
Posted by Mikk | December 18, 2007 7:55 AM
Posted on December 18, 2007 07:55
My dad was a Nationwide Insurance salesman, district manager, and then regional manager in the 1960s & '70s. He brought me into his independent agency in 1979 and I got to hear a lot of stories about Nationwide.
In around 1974 or 75, he was pressured so badly over his hiring a salesman--an American of African descent, (who excelled) that he resigned and set up shop on his own.(Thanks, Dad!)
Some of their old insurance apps had grading schedules on the back. There were demerits applied (which affected pricing & underwriting) for being of other than Caucasion descent. I once saw one, and an elderly student (a career agent with Nationwide) in a CE class I taught corroborated this, but couldn't find me a copy.
Dad always described the Nationwide home office as seeming to be a "Masonic Shrine."
So ... it's completely plausible to me that stupid racial ideas might still be polluting Nationwide's operations.
The sins of the fathers!
SAM RESPONDS:
That was a long time, ago, Joe, and for now, no one is accusing Nationwide of racism--an allegation the carrier vehemently denies. But the fact is there hasn't been any dramatic change in the diversity of the industry, and that's the unfortunate thing.
Posted by Joe Zinobile | December 18, 2007 3:04 PM
Posted on December 18, 2007 15:04
Lacking any further information from Nationwide, it looks like the industry is indeed once again shooting itself in the foot (or, perhaps more accurately, in the head). Since Jerald is challenging them publicly, I think it is incumbent upon them to release further information.
As far as diversity in the industry, particularly producers and management, there has long been certain unwritten rules. Again going back a long time, even longer than the previous writer, I was Assistant Office Manager in a large Jacksonville, Fla. regional office of a now defunct insurer.
We were looking for underwriter trainees--any college graduate could qualify--when we had an applicant apply who had just graduated from a black college with a degree in mathematics. I gave him all our tests, and he excelled. Well-dressed and spoken, very intelligent, he seemed the perfect candidate. Management wouldn't even talk to him.
I still think about that and what it must have felt like to him.
Another time we were looking for experienced SMP underwriters (a very rare breed in 1970). A woman applied who had two years experience as SMP underwriter with another, respected, company. Management wouldn't talk to her. They said women tended to cry if an agent got upset! And yet the entire Personal Lines Department was composed of women! And one was a real sweetheart unless you crossed her. Then the only one crying would be yourself!
Unfortunately, attitudes like this still persist in the industry. My agency has a woman founder and owner, but many won't let women get past Personnel Manager in Management.
Insurers now have many women underwriters and field reps., but again, how many do you see in management?
Same applies to anyone who is not white. Unfortunately.
Companies use the rationale that agencies don't want to deal with women or non-white exectives.
My feeling? I don't care who it is if they will write my business.
Posted by Bill Lockhart | December 19, 2007 10:53 AM
Posted on December 19, 2007 10:53