CLIENT ALLEGES THAT HIS AGENTS MISREPRESENTED THE CONVERSION OF $50,000 OF HIS 1987 LIFE INSURANCE POLICY INTO A NEW VARIABLE ANNUITY CONTRACT. CLIENT ALLEGES THAT THE AGENTS NEVER MENTIONED THE ACCUMULATED INTEREST WOULD BE DEDUCTED FROM THE DEATH BENEFIT OF THE ORIGINAL POLICY. CLIENT FURTHER ALLEGES THAT THIS WAS NOT THE POLICY HE WAS LED TO BELIEVE HE HAD BOUGHT OTHERWISE HE WOULD HAVE NEVER CONSIDERED THIS CONVERSION. CLIENT IS ASKING THE FIRM TO RETURN THE POLICY TO ITS ORIGINAL FORM, WITH NO PENALTY, AND ALL APPLICABLE INTEREST CREDITED. DAMAGES ARE UNSPECIFIED.

$268.22

THE FIRM FOUND NO BASIS TO THE CUSTOMER COMPLAINT. BASED ON APPEAL LETTER AND IN ORDER TO RESOLVE ANY MISUNDERSTANDING, THE INSURANCE CARRIER AGREED TO SURRENDER THE CONTRACT FOR THE NET CASH SURRENDER VALUE AS OF 12/07/05 AND APPLY THE PROCEEDS TO REPAY THE LOAN BALANCE AGAINST ANOTHER POLICY.