Defective - Lapse Prone - Walker v LSW
Matthew DeSantos - LSW’s Senior Vice-President of Distribution and Business Development (himself a former insurance agent) - DOC 792 p27>
(p131) - Defective, lapse prone
Q Have you ever heard in your 20 years of experience in the industry of the phrase "a policy defect"?
A Only in relation to this proceeding.
Q To this lawsuit?
A Yes.
Q Have you ever heard of a policy being referred to as a defective product?
A Only in relation to this proceeding.
Q How about the phrase lapse prone?
A No.
Q Do you have any reason to believe that the Paragon and Provider products, given your experience with them, are in any way defective or lapse prone?
A No.
2014 0423 – DOC 812 – Trial Transcript – Day 10 – Walker v LSW – 194p
Matthew DeSantos - LSW’s Senior Vice-President of Distribution and Business Development (himself a former insurance agent) - DOC 792 p27>
Q So it is possible that the substantial fees will cause the cash value to go down even in years where the S&P 500 is up; right?
A I don't know that for sure.
Q You don't know that for sure? You have never looked at that?
A I can't say that I have.
Q Okay. And that's not important at all to your determination that the policies are not lapse prone or not defective?
A I have looked at illustrations, many of them. That's what we use.
2014 0423 – DOC 812 – Trial Transcript – Day 10 – Walker v LSW – 194p