DOC 815 TRANSCRIPT for proceedings held on 2/14/2011 - 41p

• (p11) - Brosnahan: I would like to move on to the non-guaranteed  elements unless the Court has any questions.
• THE COURT: No.
• MR. BROSNAHAN: There are two aspects in which we contend that the illustrations were deceptive with regard to the non-guaranteed elements.
  • Both of these theories relate to what we consider to be hidden defects in the structure of these policies.
  • Now, first, with regard to the volatility issue, we allege that these policies suffer from a material risk that is not disclosed because large fees are deducted from the policy in both good times and bad,...