Consumer Understanding – Walker v LSW

(p4-5) - Moore, Monte Carlo
- In regard to consumer understanding, the Court correctly found that there was no foundation because, quote, "The concept of policy performance based on hypothetical returns is not so complex that consumers could not understand it."
- This ruling should be extended to Mr. Sabatini as we argued in our opening brief at pages 23 to 24. Mr. Sabatini opined in his report that there is a serious cause for skepticism that a consumer would be able to understand the Monte Carlo simulation, virtually the same opinion given by Ms. Moore.

2014 0327 - LC - Walker v LSW - DOC 781 - TRANSCRIPT for proceedings - 85p

(p35) - Matthew DeSantos - LSW’s Senior Vice-President of Distribution and Business Development (himself a former insurance agent) - DOC 792 p27
- MR. FOSTER: The responsibility for ensuring that a policyholder or a prospective policyholder understands the tax risks associated with taking policy loans.
- THE WITNESS: I don't know that there's any way an insurance company could actually make sure that every policyholder understands every aspect of the tax implications in a policy.
  - But again, we do provide the information and have responsibility to do that.