MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
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
of 15 active Maryland agents ratio of replacement activity
was selected. according to
The criteria for
selection was an
selected agent for documents relative
the years 1998, to the issuance of
1999 and 2000. The the requested insurance.
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
Date of Application
MET LIFE REPORT NO. 786-01