Customer alleges that, in June 2006 when registered representative recommended a variable annuity, he was unaware, and therefore unintentionally failed to disclose, that the recommended Guaranteed Withdrawal Benefit was subject to an age 65 adjustment that reduced his annual income by approximately $11,655 a year for the rest of his life.

$150,000.00

Customer alleged that when he purchased three variable annuities in June 2006 at age 54, there was inadequate disclosure and he was not advised that the lifetime guaranteed withdrawal benefit rider included in the policy was subject to adjustment for any withdrawals taken before age 65. Unaware that the withdrawals would reduce his lifetime benefit, customer began withdrawals at age 59½ and when he reached age 65, he was advised by the insurer that his anticipated annual lifetime benefit was reduced significantly for the rest of customer's life. Registered representative previously requested, and obtained, a correction of a similar issue with the issuing insurance company for another client. Registered representative assisted customer in requesting a similar correction from the insurance company. However, the issuing insurance company declined to take corrective action in this case. Customer and registered representative's firm agreed to a settlement in the form of a restorative payment to the customer's annuity that increased his lifetime benefit significantly. As of this date customer remains a valued customer of the registered representative.