New York Life Insurance

Name, Name, Stephanie Rivera

February 6,2015

Case 4-2 New York Life Insurance

Case 4-2 is concerned with the law divisions of the New York Life Insurance Company, more specifically, the individual loan section and the corporate loan section divisions. William Somersby, the Vice President of the Law Division, reports directly to top management on behalf of the individual loan section and the corporate loan section. Each quarter, the budget committee member, Mr. Montgomery, holds a conference with each law division head. The individual law section is in charge of legal processing of loans made to individuals while the corporate loan section is responsible for larger amount loans made to commercial enterprises, industrial or public utilities. The mortgages made available to individuals in the individual loan section differ greatly from the operations in the corporate loan section.

The Investment Division, within the Individual Loan Section, creates the terms of the loans and makes a decision as to whether or not the mortgage and the mortgager are acceptable to the Insurance company. The major function of the Individual Loan Section is to perform the legal work necessary on all new loans purchased and on all existing loans. New York Life Insurance receives a bunch of loans from independent companies and batch them together in packages. The loans get sent over to the Law division after approval from the Investment division. It should be noted that the Individual Loan Section has three geographical groups- Atlantic Coast, Midwest, and the Pacific Coast. These groups allow for better control and analysis. Each geographic group is led by an attorney. In addition to the three attorneys for the three regions there is an extra attorney is ready to assist should one of the three attorneys become ill or go on a vacation. In addition to the five attorneys and staff, there are 26 mortgage examiners, with no legal training, selected by the company and trained to...