CLIENT HAS ALLEGED THAT THE 6% GMIB WAS NOT PROPERLY REPRESENTED WHEN SHE PURCHASED AN AMEX VA IN FEBRUARY 2004. SHE CLAIMS THAT SHE DID NOT KNOW THAT SHE HAD TO ANNUITIZE TO RECEIVE THE GUARANTEED RETURN BENEFIT. THE CLIENT HAS ASKED TO SURRENDER THE CONTRACT WITHOUT PAYING THE 8% SURRENDER CHARGE (CURRENTLY $8,677.57) AND SHE WANTS THE 12/31/04 VALUE WHICH HAS DECLINED AS OF 4/26/05 DOWN $5,065.13. TOTAL CLAIM IS APPROXIMATELY $13,742.70.

$13,742.70

THERE IS NO EVIDENCE THAT THE VARIABLE ANNUITY PRODUCT WAS NOT PROPERLY SOLD TO THE CLIENT. ALL PAPERWORK AND OTHER DISCLOSURES WERE PROVIDED TO CLIENT IN A TIMELY MANNER AND SHE ACKNOWLEDGED RECEIPT OF HER CONTRACT. THE FIRM DENIED ALL CLAIMS OF WRONGDOING AND WILL NOT ACCEDE TO CLIENT'S REQUEST TO SURRENDER THE CONTRACT AT AN INCREASED VALUE WITHOUT SURRENDER CHARGES.