Wessex Financial & Insurance Services, Inc.

Initial Business Response /* (1000, 9, 2016/06/09) */
Dear ***:
I first met *** *** in the fall of 1999, she was years old, she had two children and working as an educatorWe met because she had a need to make sure her children would be taken care of if anything were to happen to
herShe was also interested in saving for retirementBecause she is an educator in the State of California, has a pension with the State of California, and because she understood the benefits of using life insurance to maximize her pension, she wanted to proceed with purchasing the life insurance policyUsing life insurance to maximize the benefits can potentially save a lot of money over a lifetime*** thoroughly understood how life insurance can be used to maximize pension benefits and to insure against riskShe decided to sign up for a life insurance policy as well as a 403(b)planI met with *** many times over the past years, through two divorces and three marriagesOver the years her need for insurance increased resulting in multiple investment policiesShe wanted to be self-insured and not use the state pension settlement options as well as provide income for herself and a death benefit for her familyBecause she has been married many times she still felt that she should leave a benefit to her children, not just her spouse
I first met with *** *** in November of He was unhappy with his current investment with Jackson National LifeIn January, 2016, my assistant *** with *** on the phone, called Jackson National Life to gather information regarding his policy because Jackson National will only speak with the client on the phoneJackson National Life stated he had invested $59,with Jackson National and the account value was now only $47,This is due to market risk and high expenses as it is a variable annuityWhere the guarantee $55,*** is referring to comes from, is that his policy has a Guaranteed Lifetime income rider on itIf he elects to only take income over his life time Jackson National would base that on the guarantee income base at that timeIt is not the true value, it's a figure that is used to factor his incomeIf he did not elect to take income, his account value is accumulation, plus interest, minus fees
When we spoke he addressed his concern about protecting his principal and not losing any more money in the marketThe transfer was not accepted by Athene due to suitability*** did acknowledge on April 20th, that he had received a letter from Athene that the transfer was denied due to not meeting suitabilityBeing that the contract is between the insurance company and the customer, it is Athene's responsibility to inform the customer as to why it is rejectedWhen Athene rejected the policy I looked into another company, Equitrust, that would also provide him the same kind of safety on principal and growthEquitrust also rejected due to not meeting suitabilityEquitrust sent a letter to *** on February 25th, 2016, stating that his Jackson National Life Polity had not been inforce for at least years, which was the reason it was denied by both Athene and Equitrust*** was sent letters by both companies stating the reason
Athene actuarial and suitability departments make the decision to approve an application, this is done before money is requested from a transferring carrier, this was not done in this case, I am not sure whyprocedure is for a receiving company (Athene) will accept the moneyThis was not done, and I as an agent have no control over this, it is a decision of the insurance company
When an insurance company decides to reject an application, protocol is to send the money back to the original carrier in order to reinstate the original planThat has been the way has worked for my entire careerAthene was informed to send the funds back to Jackson National, they did not do thisWhy they did not, I am not sureprotocol for tax sheltered money is to it send back the original carrier and that's what I also instructed them to do
My office reached out to *** several times to help resolve the problemI personally spoke to ***, her rejected my help and told me that everything with Jackson National Life had been re-instated , he was happy, and thanked me for the call
Sincerely,
*** ***

Initial Business Response /* (1000, 9, 2016/06/09) */
Dear [redacted]:
I first met [redacted] in the fall of 1999, she was 38 years old, she had two children and working as an educator. We met because she had a need to make sure her children would be taken care of if anything were to happen to...

her. She was also interested in saving for retirement. Because she is an educator in the State of California, has a pension with the State of California, and because she understood the benefits of using life insurance to maximize her pension, she wanted to proceed with purchasing the life insurance policy. Using life insurance to maximize the benefits can potentially save a lot of money over a lifetime. [redacted] thoroughly understood how life insurance can be used to maximize pension benefits and to insure against risk. She decided to sign up for a life insurance policy as well as a 403(b)plan. I met with [redacted] many times over the past 17 years, through two divorces and three marriages. Over the years her need for insurance increased resulting in multiple investment policies. She wanted to be self-insured and not use the state pension settlement options as well as provide income for herself and a death benefit for her family. Because she has been married many times she still felt that she should leave a benefit to her children, not just her spouse.
I first met with [redacted] in November of 2015. He was unhappy with his current investment with Jackson National Life. In January, 2016, my assistant [redacted] with [redacted] on the phone, called Jackson National Life to gather information regarding his policy because Jackson National will only speak with the client on the phone. Jackson National Life stated he had invested $59,240.28 with Jackson National and the account value was now only $47,045.28. This is due to market risk and high expenses as it is a variable annuity. Where the guarantee $55,000.00 [redacted] is referring to comes from, is that his policy has a Guaranteed Lifetime income rider on it. If he elects to only take income over his life time Jackson National would base that on the guarantee income base at that time. It is not the true value, it's a figure that is used to factor his income. If he did not elect to take income, his account value is accumulation, plus interest, minus fees.
When we spoke he addressed his concern about protecting his principal and not losing any more money in the market. The transfer was not accepted by Athene due to suitability. [redacted] did acknowledge on April 20th, 2016 that he had received a letter from Athene that the transfer was denied due to not meeting suitability. Being that the contract is between the insurance company and the customer, it is Athene's responsibility to inform the customer as to why it is rejected. When Athene rejected the policy I looked into another company, Equitrust, that would also provide him the same kind of safety on principal and growth. Equitrust also rejected due to not meeting suitability. Equitrust sent a letter to [redacted] on February 25th, 2016, stating that his Jackson National Life Polity had not been inforce for at least 3 years, which was the reason it was denied by both Athene and Equitrust. [redacted] was sent letters by both companies stating the reason.
Athene actuarial and suitability departments make the decision to approve an application, this is done before money is requested from a transferring carrier, this was not done in this case, I am not sure why. Normal procedure is for a receiving company (Athene) will accept the money. This was not done, and I as an agent have no control over this, it is a decision of the insurance company.
When an insurance company decides to reject an application, protocol is to send the money back to the original carrier in order to reinstate the original plan. That has been the way has worked for my entire career. Athene was informed to send the funds back to Jackson National, they did not do this. Why they did not, I am not sure. Normal protocol for tax sheltered money is to it send back the original carrier and that's what I also instructed them to do.
My office reached out to [redacted] several times to help resolve the problem. I personally spoke to [redacted], her rejected my help and told me that everything with Jackson National Life had been re-instated , he was happy, and thanked me for the call.
Sincerely,
[redacted]