NAAIA Founder Fights Nationwide Over Lost Appointment

Mr. Tillman said the incident stems from a computer error earlier this year when an auto policy was issued to a customer whose premium had not been paid. Nationwide said there was more to the termination but would not elaborate.

According to Mr. Tillman, the problem began in January when a longtime customer came into his agency seeking an auto policy. After giving her a quote and beginning the payment process, he said a problem developed when the customer's debit card indicated there were insufficient funds to pay the bill.

He said he informed the customer about the problem and told her the policy would not be issued until payment was made.

Somehow, according to Mr. Tillman, the policy was issued by Nationwide's computer system. He said he thought the policy was cancelled because payment was not completed, but it was issued anyway because he did not cancel it in the system.

"It was a mistake I made," said Mr. Tillman, noting this was a new computer process. "I did not delete the auto application from the computer."

He said he learned of the mistake a month later when the customer's son got into an accident. Before the accident, he said he kept reminding the customer–who is a member of his church–that she needed to make the payment to get the insurance, but she never told him she already had the policy. He added that she made the payment the day after the accident.

Mr. Tillman said that in April, representatives from Nationwide entered his office and announced he no longer represented the carrier. They would not tell him why, and he had to call the home office to finally learn the reason, he added.

He lost his appeal in a review process. He said the company is refusing to pay him his premium equity for his years of service because he has refused to sign a nondisclosure agreement.

In part, he blames an inexperienced manager for his plight but said he is at a loss to understand why he has been treated the way he has. "They came after me like I was the biggest liar in the world," said Mr. Tillman. "I've built a solid reputation," one he says he would not risk for an $80 premium.

Charles McKinney, Mr. Tillman's attorney, said he believes his client has reason to seek legal redress, and that negotiations with the company have proven fruitless.

"This was one simple incident that they claim they investigated and did not find anything terribly unique," said Mr. McKinney, adding that others have made computer errors which did not produce their termination, and doing so here was a "stretch."

There is concern that the incident could have racial overtones, because Mr. Tillman said he is one of a few African-American agents representing the company. But Mr. McKinney did not say he believes the incident was racially motivated, nor that race would be a basis for legal action.

The action, he said, would be based on the fact that the incident does not meet the test for egregious behavior that should result in dismissal.

"They did not base the dismissal on a laundry list of incidents," he said. "If this can happen to a person who has worked for 27 years in this business and has been at the forefront of having diversity in the industry and recruiting people to the industry, then why [can't it happen to anyone]?"

When asked if he thought there was a racial motivation behind his firing, Mr. Tillman's reply was: "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."

Currently, Mr. Tillman has managed to secure an appointment with a specialized employee benefit company, but he admits the going is tough at the moment.

In response to a request for comment, a spokesman for Columbus, Ohio-based Nationwide, Joe Case, issued a statement:

"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. "It is unfortunate that Mr. Tillman continues to falsely attack Nationwide over contract violations to which he admits."

Mr. Case went on to say that "Nationwide strongly denies Mr. Tillman's claims of racial discrimination."

Mr. Case said Mr. Tillman is "undertaking an aggressive campaign" to get his story out, and the company has declined to respond other than directly to Mr. Tillman and his attorney, because "this is a contractual matter between the parties and because Nationwide believes it has acted within its rights under the contract."

Mr. Case concluded, "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."