Paul Lackan Consulting Inc.

[redacted]RE: Revdex.com Complaint [redacted]Dear [redacted]Thank you for bringing this complaint to our attention. Insurance Licensing Services of America, Inc. (ILSA) hasnever been...

the subject of a Revdex.com complaint, and it appears that our profile information in your system is outdated, sowe may never have received proper notification, in time to properly respond, had you not reached out to us.I will explain our process as I address the client’s complaints with quotes from, and references to, any necessaryexhibits. There are several exhibits attached.In the complaint that you brought to our attention, dated 12/21/2016, attached as Exhibit A, the ILSA Client stated:“ILSA was employed to make our Texas Surplus Lines Filings”The Client Contracted ILSA, by signing and funding a Project Cost Analysis (PCA) dated 11/03/2015, attached asExhibit B, that clearly states in the Project Description that:“ILSA to enroll INSURANCE MARKETING CORPORATION OF OREGON in Surplus Lines Tax Filings Service for all stateswhere such service is available. (Third-party vendors are not permitted in MS.) This quote illustrates ILSA service fees only.Numbers of filings/reports will vary depending on the amount and location of business written. ILSA will verify the entity's licensestatus through the National Producer Database. ILSA will be responsible for corporate filings only.”Client also signed and returned the Master Service Agreement (MSA), dated 11/25/2015, attached as Exhibit C,that clearly indicated, on page one, that they are coming into ILSA’s services for Surplus Lines Tax Filing Services.Please note Section 7 of the MSA (Exhibit C) that spells out the client’s responsibilities:“…By requesting surplus lines tax filing services, the Client understands and acknowledges that the Client has responsibility for thetimely, accurate and compliant submission of reports to the applicable state agencies and the payment of fees and taxes due. Clientwill indemnify and hold ILSA harmless from any fines, penalties, liabilities or related costs, including reasonable attorneys’ fees,levied by any state regulatory authority resulting from the Client providing ILSA with inaccurate or untimely information necessary toprepare such reports.”The Client also stated:“they have never made one filing on our behalf”To process filings on behalf of our clients, we require policy information from the client. The information must becomplete, and received with time for ILSA to process the filing with the respective state. Please refer to the 10thpage of Exhibit C (Pages 4 & 5 of the MSA exhibit package), that states:“Prior to delivering any Surplus Lines Tax Filing Services, ILSA verifies a client’s surplus lines licensing status. ILSA can assist aclient in obtaining any needed licenses. In the few states where tax filings must be submitted through a resident broker, ILSA refersthe client directly to the Department of Insurance for a list of resident brokers.Once ILSA has verified that the client has the required surplus lines licenses, clients are given access to ILSA's Policy InformationPortal. This secure web application collects extensive information about surplus lines policies from clients and allows clients tosubmit electronic copies of supporting documents, such as declaration pages and binders.[redacted]Once a client submits information into the portal, they are given immediate confirmation that their information has been received forprocessing. ILSA surplus lines specialists verify the information provided against the binder or policy provided, and address anydiscrepancies or omissions with the client. They verify the producer's estimate of the taxes and other fees owed, and notify client ofthe premium tax due with filings.Specialists maintain a filing calendar for each client. Clients are strongly encouraged to submit information as policies are written, bute-mails remind clients to address any oversights in a timely manner. As a filing deadline approaches, specialists prepare the affidavitsand other required forms and forward them to the client for review and signature. Signed forms and prepared checks can be returnedto ILSA in order to be scanned to the electronic archive; and then sent to the applicable insurance department, stamping office,department of revenue or other governmental agency. Specialists then track submissions to ensure receipt.If a client chooses to file a Surplus Lines Tax Filing or Report in-house, a written notification must be submitted to ILSA at least 90days prior to the filing deadline. If such notification is not received, all applicable filing fees will apply accordingly. Basic trackingfees will apply to all report filings that are not permanently removed from ILSA’s Surplus Lines Tax Reporting Services …”Attached, in Exhibit D, are copies of several emails, from May through June of 2016, wherein ILSA team memberscontacted the client in an attempt to obtain the necessary documents for filing Texas reports. These requests wentunanswered. Please refer to the emails in Exhibit E, also in June of 2016, where more requests for information weresent, and the Client’s cryptic reply of:“Please disregard”When prompted for clarity, the Client sent the response of:“Please disregard the filing request”This is an example of the perfect opportunity for the Client to indicate that they did NOT wish for ILSA to handletheir Surplus Lines Tax Filings (in TX, CA, or anywhere else) and wished to withdraw from ILSA’s services. TheMSA clearly outlines the exiting notification process and requirements:In the complaint, the Client also stated:“now (they) have made a Zero balance filing with the state of California that we have done thousands ofdollars of business with over the past twelve months and are charging me $600 for doing nothing.”ILSA files electronically on behalf of the client where we can. In all other states, including California, we preparethe report and forward it to the client for signature, collect it from the client, attach supporting documents, and filemanually. We try to work 90 days ahead of the filing date, to make sure the reports are accurate. If we have nosupporting filing information from the client, we prepare reports that reflect zero business in that state.Please see Exhibit G, an email dated 11/28/2016, to Client, notifying him of the upcoming California filings, withattached reports. Please see Exhibit H, showing a second email to the Client with the Zero Reports for CA thatneed signing, that are due on 3/1/2017, and the subsequent response from the client, including the attached SIGNEDzero reports to ILSA for filing. To clarify that: the Client SIGNED and RETURNED the same zero reports toILSA, for filing, that he is referring to in his complaint. **Note: ILSA bills the client once the forms have beengenerated and sent to the client for signature, as outlined in our MSA.ILSA has these signed zero reports but has NOT submitted them to California, as indicated by the Client.Furthermore, had ILSA submitted these signed zero reports to California, the reports due date is 3/1/2017, and couldbe amended at any time up to, and even after, that due date, without penalty. That being said, the fact remains thatthese zero reports have not been submitted to the state, by ILSA.The entire issue of the filings could have been avoided had the client simply responded clearly and directly torepeated email requests, or notified ILSA that they did not, indeed, wish for ILSA to handle their Surplus Lines TaxFilings, as indicated in their signed PCA and MSA (Exhibits B & C).[redacted]The Client also stated:“I mentioned this to ILSA and asked for some other resolution to this, but have gotten not response”We have a dispute resolution process, which was underway when the client submitted the complaint to the Revdex.com.We review the situation to determine whether ILSA failed the client, whether there was mutualmisunderstanding/fault, or whether the client did not fulfil their obligations to allow ILSA to provide the requestedservice. Please refer to Exhibit I, showing a Credit Memo requested by the Client via phone on 1/10/2017,requesting a credit for the CA zero reports (the ones ILSA processed and sent to the client for signature – the onesthat the Client SIGNED and returned to ILSA).The Client further stated:“I have the documents they provided and all forms show zero balance, now I have to rectify the situationwith California to resolve the matter.”As stated above, ILSA sent the forms to the client for signature on 11/28/2016, informing him that we need themback prior to 3/1/2017 to submit to California. The Client SIGNED and returned them to ILSA on 12/1/2017. Ifthey were wrong, why did the client sign and return them?ILSA has NOT submitted them to the state, however; if they had, the Client would have plenty of time to amend thefilings before the deadline date of 3/1/2017. Since they were NOT sent to the state yet, and the due date is still overa month away, there is absolutely no situation to rectify in California, with regards to the filings in question – withthe exception of the fact that the CA filings are due 3/1/2017 and the Client, at his own request, is 100% responsiblefor these filings.The client indicated his Desired Settlement as:“Ultimately I would like to pay nothing, they have not made one filing on our behalf for which they claim. Iwould be willing to settle this for $200 or less, which is more than satisfactory compensation for the effortthey put forth.”Between December of 2015, when the client came on board with ILSA, and December of 2016, when this complaintwas lodged, ILSA has tracked policy information and worked with the client to determine which filings toundertake. Our job is to keep our clients compliant with state requirements, so they can do their jobs confidently.As indicated in the MSA (Exhibit C), we generate the reports and send them to the Client for signature; billing istriggered when completed reports and forms – including zero reports – are sent to the client for signature. If theClient delays returning forms to us, or decide to submit them on their own, ILSA is still entitled to payment forservices they provided. We charge a la carte, and our fees are provided before the client comes on board, so thereshould be no surprises.ConclusionBased on our review of this unfortunate incident, we believe the Client complained to the Revdex.com before ILSA hadadequate time to address the situation internally, following his notice to ILSA of an issue. We do not know thereason for his haste to report this to the Revdex.com, however, ILSA is exceedingly concerned with and protective of theirprofessional reputation. ILSA has spent 20 years building their good reputation and works vigorously to resolve anycomplaints or issues, especially those where their good name may be damaged. To that end, ILSA has fullyinvestigated this matter and has determined (and provided ample evidentiary support in the attached Exhibits) thatILSA did exactly what they were contracted to do, for the Client.[redacted]We appreciate that the client wishes to pay nothing, yet finds $200.00 more than satisfactory compensation for theeffort ILSA put forth, however; for the record, we believe that ILSA has shown that the full balance is actually fair.That being said, ILSA would like to resolve this matter quickly and is willing to negotiate with the Client, with theacknowledgement that the complaint was fully investigated and the issues, including any misunderstandings, thoughregrettable, were not a result of ILSA’s actions.Please feel free to contact me if you have any questions.We respectfully request that all attachments be handled with care, and undergo a rigid redaction process, before thismatter is made public, in order to protect the Client, ILSA and ILSA Employees, and preserve the integrity of ourprivacy policy.