MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
XIII. POLICY HISTORY
The examiners requested from the Company the history of 25 policyholder applications in order to determine the effectiveness of Company oversight with regard to dividend withdrawals, cash surrenders, and policy loans in the writing of new business.
The examiners interpret the following (5) policies as an attempt by the writing agent to manipulate commissions versus providing the insured with insurance based on need:
Paid to: 10/2000
Paid to: 3/2001
Amount $ 35,000
Amount $ 25,000
The examiners agree that the changes did allow the insured to maintain $475,000 in total life coverage. And it was the insured contractual right to purchase the additional contracts exactly as he did. While the methodology for contract purchases is correct, the examiners are not convinced the insured made purchases that benefited the agent more than the insured.
MET LIFE REPORT NO. 786-01