Making Legal Advice Accessible

“It is true of the nation, as of the individual, that the greatest doer must also be a great dreamer.”
—Theodore Roosevelt

A car accident led Harland Stonecipher to develop the legal service plan industry in the United States. Photo: Ian Wagreich

It’s no exaggeration to say that Harland Stonecipher developed the legal service plan industry in the United States, helping millions of people access legal advice and creating a business that’s a far cry from his humble beginnings as an Oklahoma sharecropper’s son.

Stonecipher started his professional career as a school teacher but always felt that “no matter how good a job I did at teaching, I could only earn a certain limited income. So I decided to do something else, where I wouldn’t have that limit.” He switched to selling life insurance and did well. Then, in 1969, Stonecipher was involved in a head-on collision that resulted in serious legal fees. This accident provided the inspiration for a new company.

“I had automobile insurance to pay for my automobile. I had health insurance to pay for my doctor bills. And since I was in the life insurance business, I also had life insurance,” says Stonecipher. “But even though the highway patrolman gave the other driver the ticket, I got sued—and I was not financially or emotionally prepared for that.”

Shaken by the experience and worried about his legal bills, Stonecipher began researching the concept of legal insurance. After learning that several European countries already offered such services, he adapted the model and started Pre-Paid Legal Services Inc. (NYSE: PPD), one of the first companies in the United States organized solely to design, underwrite, and market legal expense plans for individuals.

Pre-Paid Legal Services offers a product similar to auto or health insurance. Members (customers) pay a monthly fee—approximately $26 for individuals and $75–$100 for small business customers. Members are encouraged to use the plan to access legal services for a variety of life events and personal needs. Services are provided by a network of attorneys specified in the plan. Telephone or office consultations, reviews of legal documents, will preparation, and similar services are provided as ongoing plan benefits. More extensive services are available at a discounted rate.

The company started with just Stonecipher and one other person selling plans for $2.50 a month. Pre-Paid’s first-year revenues were only $3,600. “It took us 15 years before we generated a profit,” Stonecipher says.

Pre-Paid Legal relies on multilevel or network marketing for sales. Today, the company has 100,000 independent sales associates and partnerships with more than 38 independent law firms. It provides legal services and identity theft services to more than 1.5 million families across the United States and Canada. In addition, Stonecipher employs 813 people at the company’s $35 million headquarters in Ada, Oklahoma.

“I thought I would retire years ago, but I’ve since decided that this is what I want to do. I get to make a difference in people’s lives every day.”

Member Facts
Company:  Pre-Paid Legal Services Inc.
Owner:  Harland Stonecipher
Founded:  1972
E-Mail Address:  information@pplsi.com
Address:  1 One Pre-Paid Way, Ada, Oklahoma 74820
Phone:  800-654-7757
Web Site:  www.prepaidlegal.com
Chamber Member Since:  2002
Number of Employees:  813