Pre-Paid Legal Services, Inc. develops, underwrites and markets legal service plans through a network of more than 50 independent law firms across the U.S. and Canada.

The plans provide for legal service benefits, including unlimited attorney consultation, letter writing, document preparation and review, will preparation, traffic violation defense, automobile-related criminal charges defense and a general trial defense. The Company also markets an identity theft restoration product.

History

The story of Pre-Paid Legal Services, Inc. began on July 11, 1969 when CEO and founder Harland C. Stonecipher was involved in a vehicle accident which, although the other driver was found to be at fault, left him with costly legal bills. He had auto insurance to cover the damage to his car, medical insurance to cover the cost of his hospital stay, and even life insurance had the accident been fatal. But he had no coverage or protection for the legal bills that accumulated. He began researching the industry of European legal expense plans. On August 8, 1972, Harland Stonecipher created Pre-Paid Legal’s predecessor, The Sportsman’s Motor Club, offering legal expense reimbursement services as a motor service club. Throughout much of the 70s, Pre-Paid Legal utilized the services of only three salesmen to solicit new members and service existing accounts. In 1980, Wilburn Smith, one of Pre-Paid Legal’s most successful Associates, quit his job at a local supermarket to join the Pre-Paid Legal sales force. The introduction of the network marketing concept by John Hail took hold in the ’80s and Pre-Paid Legal began initiating sales through network marketing in 1983. Pre-Paid Legal went public on the NASDAQ National Market System in 1984, and two years later moved to the American Stock Exchange. On May 13, 1999, Pre-Paid Legal moved to the New York Stock Exchange, and within four months was listed as the 33rd fastest growing company on the NYSE, according to Equities Magazine. In 2000, Pre-Paid Legal made the Forbes list of the 200 Best Small Companies in America for the fifth year in a row. The company currently provides services in all 50 states and four provinces in Canada, with over 1.5 million members.

Products

Pre-Paid Legal's cornerstone product is their Expanded Family Plan, which covers preventive legal services, motor vehicle services, trial defense, and IRS audit protection. The exact coverages vary from state to state (or province to province) depending on local laws. In states or provinces where certain services are not offered in the plan, the membership fees are adjusted accordingly.

The company also offers several riders which can be added onto the family plan for an additional fee, including the Legal Shield, which provided 24-hour access to an attorney in the event the member is detained or arrested, the Identity Theft Shield, which provides credit monitoring and identity restoration services, and the Home Based Business Rider, which provides services such as debt collection letters. The Identity Theft Shield can also be purchased as a standalone product.

In addition, the company offers several specialized plans targeted at certain niche markets, such as truck drivers, law enforcement officers, and small business owners. While each type of plan is unique, all of the legal plans offer telephone consultations, and all provide a discount for legal services that fall outside of their respective specified coverage.