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MARYLAND INSURANCE ADMINISTRATION - page 22 / 43

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MARYLAND INSURANCE ADMINISTRATION

JUNE 24, 2004

HOME OFFICE

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:

986412060PR

Issued 4/24/98

Amount $440,000

Paid to: 10/2000

986412101PR

Issued 4/24/98

Amount $415,000

Paid to: 3/2001

986408809PR

Issued 4/24/98

Amount $475,000

Paid to:

6/1999

996605220A

Issued 6/24/99

Amount $ 35,000

Paid to:

3/2001

200178232A

Issued 9/24/00

Amount $ 25,000

Paid to:

3/2001

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

PAGE 22

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