INITIALLY, AXA ADVISORS DENIED THIS COMPLAINT AND INDICATED THEY FOUND NO BASIS FOR THE COMPLAINT. BASED ON AN APPEAL RECEIVED APRIL 18, 2012 AXA ADVISORS AGREED TO WAIVE THE CHARGES ASSOCIATED WITH THE REDUCTION IN THE FACE AMOUNT ($100,000) ON THE VARIABLE UNIVERSAL LIFE INSURANCE POLICY. THE LOSS TO AXA ADVISORS WAS $2,979.50. THE REPRESENTATIVES ERRORS AND OMISSIONS CARRIER DID NOT CONTRIBUTE TO THIS SETTLEMENT.

THE FIRM FOUND NO BASIS TO THE CUSTOMER'S COMPLAINT.

COMPANY REVIEWED CASE AND OFFERED CLIENT 2 OPTIONS TO REVIEW MATTER. INSURED FAILED TO MENTION IN COMPLAINT LETTER THAT THEY WANTED THE INSURANCE BUT ONLY WANTED A LIMITED PAYMENT POLICY. I MADE IT CLEAR TO [CUSTOMER] AND [OTHER CUSTOMER NAMED] THAT THE $125,000 IN [OTHER CUSTOMER NAMED'S] PROFIT SHARING PLAN WOULD BE AVAILABLE TO HELP PAY THE PREMIUMS ON THE $15,000 POLICY ONCE SHE RETIRED FROM SEARS. THEY FELT COMFORTABLE AT THE TIME USING THE 3900 IRA UNTIL [OTHER CUSTOMER NAMED] RETIRED. WHEN I LEFT PRUDENTIAL THEY WERE UPSET, AND NOW [OTHER CUSTOMER NAMED] DOES NOT HAVE HARDLY ANY LIFE INSURANCE. I FELL THAT THEY TOOK ADVANTAGE OF PRU`S MISFORTUNES.

COMPANY REVISED NEW POLICY AND RESTORED VALUES TO CLIENTS PRE-EXISTING POLICIES. I ORGINALLY SOLD [CUSTOMER] DECREASING TERM INSURANCE IN 1993. IN 1994 HE WAS UPSET THAT THE INSURANCE WAS REDUCING IN VALUE AND CONVERTIABLE AMOUNT. DUE TO HIS DECLINING HEALTH HE WANTED TO LOCK IN THE CONVERTIBLE AMOUNT WITH WHOLE LIFE, LIKE HIS OLD POLICIES. BEFORE I MET [CUSTOMER], HE HAD TAKEN LOANS TO FINANCE HIS INSURANCE AND WANTED TO BUY THE FIRST YEAR WITH A LOAN FROM PRE-EXISTING POLICY UNTIL HE GOT HIS FINANCES IN ORDER. [CUSTOMER] TOLD ME THAT IF I EVER LEFT PRUDENTIAL HE WOULD BE MOST UPSET, AND THE AGENT WHO FOLLOWED WITH HIM DID NOT UNDERSTAND THE ELEMENTS OF THE SALE AND PROCEEDED TO UPSET HIM MORE. HE IS NOW UNDER INSURED DUE TO MY INABILITY TO FOLLOW UP BECAUSE I LEFT PRU.

COMPANY REVIEWED THE MATTER AND REVERSED POLICY IN QUESTION AND RESTORED VALUE TO OLD POLICIES. [CUSTOMER] WAS CONTACTED BY ME AS A FOLLOW UP ON 07/25/96 AS I COULD SEE HOW HE WAS DOING. HE WAS HAPPY TO HEAR FROM ME AND INQUIRED ABOUT BUYING MUTUAL FUNDS. I TOLD HIM TO PUT THE MONEY IN HIS VARIABLE LIFE WHEN HE TOLD ME HE HAD GOTTEN HIS MONEY BACK. I ASKED HIM WHY AND HE SAID THAT HIS SISTER IN FLORIDA HAD PROBLEMS WITH PRUDENTIAL AND HE DECIDED HE WANTED NOTHING TO DO WITH PRU SINCE I HAD LEFT. HE WAS GOING TO CASH IN HIS PRE-EXISTING POLICES AT THE TIME OF SALE IN WHICH I COUNSELED HIM TO AT LEAST KEEP THEM IN FORCE AND PAY THE LOAN INTEREST. THE POLICY I SOLD HIM MET HIS WANTS PERFECTLY, THIS WAS A GOOD BUY FOR HIM.