CUSTOMER HAS ALLEGED MISREPRESENTATION, FAILURE TO DISCLOSE MATERIAL INFORMATION AND UNSUITABILITY REGARDING A VARIABLE UNIVERSAL LIFE POLICY AND A VARIABLE ANNUITY

$57,960.00

CUSTOMER FILED COMPLAINT WITH FINRA AND THE INSURANCE CARRIERS WHEN HER FIRST COMPLAINT TO THE VIRGINIA BUREAU OF INSURANCE ON THE VUL WAS CLOSED WITH NO ACTION. CUSTOMER DID NOT RELAY IN HER COMPLAINT LETTER THAT PRIOR CLAIM FOR ESSENTIALLY THE SAME ISSUE HAD BEEN FILED AND CLOSED. REP HAS NOT SPOKEN WITH THE CUSTOMER SINCE MARCH 2009 WHEN HE CHANGED BROKER-DEALERS AND CUSTOMER ELECTED TO REMAIN AT THE OLD BROKER-DEALER. WHEN MARKET COLLAPSE IN 2008 ERODED POLICY VALUES, REP REVIEWED VUL SOLD BY PRIOR REP AND RECOMMENDED THAT VUL BE EXCHANGED IN ORDER TO BETTER CUSTOMER'S POSITION BY REMOVING THE TABLE 2 RATING AND ADDING 18 YEARS TO THE GUARANTEED DEATH BENEFIT PROVISION FOR ABOUT THE SAME PREMIUM SHE WAS PAYING ON THE PRIOR POLICY. LIKEWISE, THE VA EXCHANGE BETTERED THE CUSTOMER'S POSITION BY ADDING A GUARANTEED INCOME RIDER AND LOCKING-IN THE STEPPED-UP INCOME BASIS (FROM $850,000 TO $1,100,000 - A 29% RETURN). CUSTOMER INCURRED A SURRENDER CHARGE THAT DID NOT AFFECT HER ORIGINAL PRINCIPAL BUT DID CAUSE HER TO FORFEIT SOME OF THE BONUS RECEIVED. REP CAUTIONED CUSTOMER NOT TO RAID THE VA FOR HER EXTRAVAGANT LIFESTYLE BECAUSE IT WAS SET ASIDE FOR FUTURE RETIREMENT INCOME. CUSTOMER APPEARS TO HAVE IGNORED THE ADVICE. IT IS REPS' OPINION THAT CUSTOMER HAS RUN OUT OF FUNDS ELSEWHERE, HAS OVEREXTENDED HERSELF WITH HER SPENDING AND IS LOOKING TO RECOUP FUNDS BY NOW CLAIMING THAT THE PRODUCTS WERE UNSUITABLE YEARS AFTER THE TRANSACTIONS OCCURRED.