Tobacco Documents Online

.`From 3:00 p.m. to 4:00 p.m. on March 30, 1981, r. Judge and I met with Frank T. Crohn, C.E.O..of `National Benefit Life Insurance Company ("NBLIC") ` :;:;and NBLIC' s•counsel, Judge Bertram Harnett of Moses `& Singer. Harnett Judge furnished Messrs. Crohn and y ' h ith a copy of my attached opinion of March 18, There then ensued a conversation in which I endeavore :.,.~. :.,:to make clear to the NBLIC representatives the serious ~ty , .legal problems I envisage from any association between Lorillard tobacco products and the offering for sale to our consumers, in connection with our products, of any opportunity to purchase term life insurance. :,.;;~j;,_`:,.:,>, ;, 11 It is clear that Judge Harnett neither understood nor agreed with our legal analysis - particularly as -relates to our.concern not only with FTC regulation of our advertising activities, but, more importantly, with private product liability litigation. In this regard, Harnett is of the view that a favorable advisory opinion from the FTC, and an indemnification undertaking by NBLIC should be sufficient comfort for us. I tried to explain to him why they would not be. Mr. Judge and I both spent considerahle time try- ing to clarify Mr. liarnett's and Mr. Crohn's erroneous impressions of our advertising; of the smoking and health controversy; of the distinctions between the tobacco _.•business and banks which sell term life insurance; and of our primary mission to sell cigarettes. * They took aiaay with them, for consideration by the 1\'isLIC actuary, a copy of the midc:l e paragraph of that opinion.

the conclusion of the meetiri indicated that perha g, Mr. Crohnl . -;..~ , . rs. event NBLIC did so ~• •'-He asked whether, in the ' to attratl mpaies which attem c ony nonsmoke Pt nsuran cec on ; contrast to other i s '':;;term life insurance, hroughedirectnnewcturer, to offer ` tisin -'<.g. to all smokers (not sPaPer, adver- :: I the involvemcnt of ans 'NzLIC would endeavor,-without . rillard would take an affirmative ! attitude toward such a r p ogram ad end ;; publicize or neavor to hel ro t p mo e the clear to Mr. Program p . ?It was made absolutel ~~ Crohn that Lorillard could not, and would :ys1;~ do so. ~ . . .... . - ,~.•..:. tv_..S'~~r _~ ~.t.i.. . .:4.:~. .k.'`... ~- The entire di scussion f wasriendly and amicable. cc: Mr. C.H. Jud 9ev