CLIENT ALLEGES PURCHASE OF TRAVELERS ANNUITY ON 9/8/00 WAS UNSUITABLE. SEEKS CANCELLATION OF CONTRACT AND RETURN OF ORIGINAL INVESTMENT. CONTRACT VALUE DOWN APPROXIMATELY $35,000.

$35,000.00

THIS CUSTOMER COMPLAINT IS NO LONGER REPORTABLE. 8/2/00-MEETING TO REVIEW CLIENT OVERALL INVESTMENT SITUATION INCLUDING PROVISION CLIENT PROFILE QUESTIONAIRE: 1. "INVESTING REQUIRES THAT YOU CONSIDER YOUR TIME HORIZON BECAUSE TIME IS A KEY ELEMENT IN INVESTMENT RISK AND REWARD. THIS IS PARTICULARLY IMPORTANT WHEN INVESTING IN STOCKS. HISTORY HAS SHOWN RETURN ON STOCKS DO NOT ACCRUE EVENLY OVER TIME. THEREFORE, STRATEGIES MUST BE GIVEN TIME TO WORK. KNOWING THAT INVESTORS HAVE DIFFERENT TIME HORIZONS, HOW LONG DO YOU ANTICIPATE INVESTING THESE ASSETS?" CLIENT RESPONSE: 10-15 YEARS. 2. "WHAT IS YOUR ATTITUDE TOWARD INVESTMENT VOLATILITY WITH REGARD TO THIS ACCOUNT? REMEMBER, HISTORY HAS SHOWN THE RETURNS OF VARIOUS ASSET CLASSES (E.G. STOCKS AND BONDS) FLUCTUATE OVER TIME. THAT IS WHY IT IS IMPORTANT TO CONSIDER YOUR TIME HORIZON AS WELL AS YOUR RISK TOLERANCE WHEN INVESTING." CLIENT RESPONSE: I UNDERSTAND THAT BY PURSUING HIGHER RETURNS, I MAY HAVE TO TOLERATE PERIODS OF LONGER, MORE FREQUENT AND GREATER NEGATIVE RETURNS. CLIENT SAID, WITH NO INSURANCE, DEATH BENEFIT OF ANNUITY WAS ATTRACTION AS WAS POTENTIAL LIFETIME INCOME STREAM. 9/7/00-REVIEW PROVISION RESULTS. PRINCIPLE NEED FOR CLIENTS WAS GROWTH WITH NO CURRENT REQUIREMENT FOR INCOME. CLIENT VOLUNTEERED HE HAD USED PUTNAM FUNDS IN HIS 401K AND HAD BEEN IMPRESSED BY RETURNS GENERATED. CLIENTS BOTH STATED IMPRESSED BY THOROGHNESS AND IN-DEPTH NATURE OF OUR PROCESS. RECOMMENDATIONS WERE MADE BASED ON CLIENT'S SITUATION AND INVESTMENT ATTITUDE. WE CATEGORICALLY STAND BY THOSE RECOMMENDATIONS.