PADI getting sued over Insurance Program

[Wookie]

It was sent to me as a .pdf, at 3.7 meg. If netdoc gives me a way to upload such a big file, I will. The suit was filed in US District court, central district, Orange county, CA, on 10/15/10. It should be a public record.

 

[cerich]

It was sent to me as a .pdf, at 3.7 meg. If netdoc gives me a way to upload such a big file, I will. The suit was filed in US District court, central district, Orange county, CA, on 10/15/10. It should be a public record.

what is the title of the suit?

 

[RICHinNC]

Synopsis man...synopsis!!

 

[Jim Lapenta]

I have the pdf. Frank has a business to run. If you will pm me your regular email or send it thru my website at www.udmaquatics.com I will forward the pdf. From the couple pages I've looked at it appears that they are accused of running an unlicensed insurance operation in partnership with their broker and underwriters. My take after seeing it on the blackberry. But I will look at it better when I get home. There are numerous assertions that I can't fully make out on the small screen. I'm off at 3. Anyone who wants a copy will need to wait until after 4.

 

[Thalassamania]

There is a big difference. DAN's owner is also the principal owner of the insurance carrier they utilize. Lexington Insurance is a totally separate entity than PADI with no ownership commonality. They are a wholly-owned subsidiary of AIG Holdings...

It is my understanding that insurance has long been the bread and butter of many of the honchos in the certification industry. I have been told by "insiders" that back in the day the principals of most of the for profit agencies made more in bribes (er ... "finders fees") from their insurance brokers than they did in salary from the agencies. DAN was just one other form of insurance corruption. The basic problem is that by requiring insurance the industry has done two things, create a deep pocket for suits (every wonder why there is not defense only insurance? or how skydiving survives without similar insurance programs?) while also creating a pool of cash that can be thrown about in many creative ways. I suspect that this is just one more chapter in a long chain of what appears to have been a rather corrupt practice area for a long, long time.

 

[Scott L]

It is my understanding that insurance has long been the bread and butter of many of the honchos in the certification industry. I have been told by "insiders" that back in the day the principals of most of the for profit agencies made more in bribes (er ... "finders fees") from their insurance brokers than they did in salary from the agencies.

The term used in the industry is rebating which is illegal in most, if not all states.

If PADI was discussing specifics of coverage, limits, etc. utilizing unlicensed personnel (branch/broker & sales level) to shops, instructors/DM's they are indeed in a sticky wicket...

 

[Jim Lapenta]

Just to let anyone who asked know. All pm's requesting a copy have been sent one. Thanks for your time and attention!

 

[Rhone Man]

Diving insurance has been a scandal for decades.

Honestly don't know the facts of this case, but I remember thinking years ago that PADI was likely to take a beat down relating to insurance in the courts one day. Maybe this is the day.

 

[Thalassamania]

The question will come down to, "is PADI 'too big to fail?'"

 

[Rhone Man]

The question will come down to, "is PADI 'too big to fail?'"

If PADI gets a bail-out, do they call it an emergency swimming ascent?