guide, by taking the agent to the policyholder's home, by showing such agent how to sell business, by showing him how to mark the policyholder's receipt books, by showing him the general records of the company, and by showing him how to adjust to the former agent's working habits regarding the time when he was to call on a policyholder and when the policyholder was accustomed to pay.
15. At the time these new agents were appointed by Quaker to serve as its agents, Quaker not only assigned them to established debits but furnished them with debit books containing the names and addresses of the persons insured by Quaker in the debit area to which the agent was assigned, and such agents continued to use such debit books for the purpose of collecting premiums and for the purpose of adding to the debit books names of new policyholders on whom they were able to place insurance with Quaker and removing therefrom the names of policyholders whose policies were cancelled or lapsed. These books became the property of United when United purchased these debits under the reinsurance agreement.
16. The names and addresses of policyholders of Quaker and United listed on these debit books, as well as such debit books themselves, are confidential information, and valuable assets of United.
17. Being dissatisfied with United, a number of agents, including Dienno and Carpitella, formally terminated their association several months following the effective date of the reinsurance agreement and became associated with Pilgrim, either through a general agency known as the Cal-Ery Corporation (hereinafter referred to as "Cal-Ery"), or as employees or agents of Pilgrim.
18. Cal-Ery is a corporation authorized to do business as a general life insurance agent consisting primarily of former Quaker and United Insurance agents, who, because of their years of experience as industrial life insurance agents for Quaker and United in servicing defined debit areas and because of their acquaintance with the policyholders they were servicing, entered into an agreement with Pilgrim on April 15, 1964 whereby each agent in Cal-Ery was licensed, or each future agent of Cal-Ery would be licensed as a subagent to sell industrial life insurance exclusively for Pilgrim.
19. Just prior to its entering into such agreement with Cal-Ery, Pilgrim only had approximately 8 to 10 agents soliciting insurance on its behalf, while after the Cal-Ery agreement was made, Pilgrim's agency force increased by 23 or 24 more agents.
20. Cal-Ery now owns about 12% of the outstanding stock of Pilgrim.
21. Pilgrim knew, or should have known, at the time it licensed these agents that they were agents of Quaker or United just prior to becoming agents of Pilgrim and that they had terminated their associations with these companies following the reinsurance by United of Quaker's business.
22. At the time these agents terminated their associations with United and became associated with Pilgrim, they had developed a familiarity and friendship with many of the policyholders they had been servicing and carried in their minds the names and addresses of many policyholders whose policies had been reinsured by United.
23. Immediately upon their appointment as agents of Pilgrim, these agents solicited policyholders for Pilgrim in the same debit area as they had been servicing for Quaker and United.
24. During a period of approximately seven weeks following the termination of each agent as an agent of United, during which period such agent was soliciting on behalf of Pilgrim in the same debit area as he had been servicing for Quaker and United, United suffered lapses in such debits in the amount of $3,404.47, including $237.46 in the debit of Carpitella and $196.04 in the debit of Dienno.
25. Under normal conditions, the average weekly lapse in a $500.00 debit served by an industrial life insurance company is no more than $10.00 or 2% of the total weekly premiums collected on the debit. The amount of lapse will increase to approximately 10% for the three or four weeks following the death, resignation, or transfer of the regular insurance agent in a given debit area.
26. During approximately a seven week period from the respective dates that four agents including Dienno and Carpitella terminated their employment with United and became associated with Pilgrim, some 317 persons within their respective debits allowed their policies with United to lapse and purchased a total of 526 insurance policies with Pilgrim. The number of lapses was much higher than would be normal following the death, resignation, or transfer of any regular insurance agent in a debit area.
27. Over the period of one year, an average agent soliciting a normal debit under normal circumstances where the weekly premium collections average about $500.00 per week, can expect to increase such weekly collections (after allowing for normal increases of about 2 1/2% and lapses of 2%) only by about $25.00.
28. By the second week he was with Pilgrim, Dienno had built the debit he was servicing from zero to $150.00 in weekly premiums, and by the second week Carpitella was with Pilgrim, he had built his debit from zero to $280 in weekly premiums.
29. Since becoming associated with Pilgrim, Dienno, Carpitella and the other former agents of Quaker and United have been calling on policyholders of United and for the purpose of inducing such policyholders to lapse, forfeit, or surrender their insurance with United, and take out policies with Pilgrim, have been making false statements about the business affairs of United and misrepresentations about the life insurance policies of Quaker which were reinsured by United. The statements so made have consisted of the following:
a. That in the event something should happen to the policyholder's insured, the holder would not receive full value on the claim under the policy.
b. That the insured should take out a Pilgrim policy because Quaker was "no longer for the policyholder".
c. That Quaker on several occasions had not been paying claims and that on several occasions they had been "dragging their feet" in payment of claims.
d. That Quaker was being run by a " bunch of Jews" and that a policyholder "would have a very hard time collecting claims."
e. That Pilgrim could issue the same amount of insurance as Quaker and United for much less money and that it would only cost "practically half as much" with Pilgrim as it would with United.
30. Pilgrim sent the following letter to United's policyholders who had been serviced by Carpitella while he was with United and who were in the same debit area being serviced by Carpitella as an agent of Pilgrim:
"William Carpitella, your former Quaker City Agent, for the past twenty-five (25) years, is now associated with the Pilgrim Life Insurance Company, home office, Philadelphia, Pennsylvania.
He will be able to offer his services with a complete line of insurance policies including, Life, Health & Accident, Hospitalization and Fire.