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13

Nov, 2020

Gagliardi Insurance

On October 27th, we sent you a notice regarding insurance policies that Gagliardi provided to you, which are the subject of a federal court lawsuit. We are writing to withdraw that letter and replace it with the attached version, which clarifies that State National never issued any policies to Gagliardi’s clients.

Hello Gagliardi Insurance Family,

The last several months has been a very difficult and painful period for Gagliardi Insurance Services, Inc. For over 35 years, our company has always taken care of its clients and insureds and worked very hard to provide both a high-quality insurance product and exceptional service. Unfortunately, recent events, which were out of our control, have intervened.

We provided our clients with an insurance policy under the name and auspices of State National Insurance Company, in combination of other insurance backed by another carrier. We were provided with formal signed documentation indicating that State National had agreed to provide its policies. We were shown evidence that a premium had been paid to State National to appropriately compensate State National for its participation as a front carrier. Finally, we were given specific direction that we could deliver policies to our clients under the State National name by the agent who, we were led to believe, had the authority to do so.

State National never issued policies to Gagliardi’s clients. After Gagliardi issued policies for over a year without any notification of any problems, State National sent a formal demand to us and others to immediately stop using its name and policies. It claimed that the signature of the State National authorized representative on the documentation provided to us was forged and that it never received any premium payment. It is now the subject of a federal lawsuit of which we are a part.

An order has been entered in the federal lawsuit that the insurance policies and certificates bearing State National’s name are not effective and there is no coverage from State National under the policies and certificates. As a result of the lawsuit and the claims of State National, the claims program has been interrupted. We cannot return any premiums without express approval of State National and the court. We are working very diligently to make sure claims can paid in the ordinary course, but that process has not yet been fully reestablished.

We sincerely regret what has occurred and are examining our options as to how to proceed.

PONY Baseball and Softball

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Washington, Pennsylvania 15301
PHONE : 724-225-1060
FAX: 724-225-9852
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