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MARYLAND INSURANCE ADMINISTRATION

JUNE 24, 2004

HOME OFFICE

XII. NEW ISSUE

The target examination at the Home Office of the Company focused on agents, and their underwriting practices. Additionally complaints generated by Maryland residents because of the misrepresentation of Company products, the unnecessary replacement of existing life insurance products, and the funding of new insurance products through policy loans and dividend withdrawals were to be investigated.

A apparent requested

field high

that

of 15 active Maryland agents ratio of replacement activity

the

Company

provide

the

first

was selected. according to

The criteria for

selection was an

Company data.

The examiners

100

applications

submitted

for

insurance

by

each

selected agent for documents relative

the years 1998, to the issuance of

1999 and 2000. The the requested insurance.

files

were

to

be

inclusive

of

all

1. Agent 823-1 District B06

The company database showed 23 applications replaced in year 1998. The following policies were written using credit vouchers to pay for some portion of the premium when converting coverage from term to universal life products. Credit vouchers (the equivalent of the company issuing a check to the insured) were determined to be advances by the Company in predetermined amounts (based on the dividend accumulations and values of the 1st policy) to be applied to the purchase of a new product by an existing policyholder

Policy No.

Date of Application

Amount

986906778

9/18/98

$ 50,000

987109844

11/26/98

$100,000

986709720

7/21/98

$ 50,000

986411544

4/21/98

$100,000

_____________________________________________________________________________________________

MET LIFE REPORT NO. 786-01

PAGE 19

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