FORMER CLIENT ALLEGES THAT UNIVERSAL LIFE POLICY SOLD TO HER IN 1997 WAS SUPPOSED TO BE GUARANTEED FOR LIFE; HOWEVER, SHE CLAIMS SHE RECENTLY DISCOVERED THAT THE POLICY WAS ONLY GUARANTEED ONLY UNTIL AGE 75. WHILE ATTEMPTING TO MOVE THE CASH VALUE OF THE OLD POLICY TO A NEW POLICY, THEY HAVE BEEN INFORMED BY THE INSURANCE COMPANY THAT THEY ARE SUBJECT TO A $6600 SURRENDER FEE. CLIENT ALLEGES DISCLOSURE DEFICIENCIES AT THE POINT OF SALE. INSURANCE COMPANY AND REPS HAVE DENIED THE ALLEGATIONS.

$6,600.00

DETAILS OF POLICY WERE EXPLAINED VIA SIGNED ILLUSTRATION PRIOR TO CLIENT PURCHASING POLICY AND ARE CONTAINED WITHIN THE POLICY ITSELF, A COPY OF WHICH WAS DELIVERED TO CLIENT. IN JUNE 2001, CLIENT SEVERED RELATIONSHIP WITH REPS AND FIRM.