Ferguson vs Crown Life and William Casteel - V13of23 - 222p

  • 1995 0901 
  • PAUL JOSEPH STRONG
    • Cross-Examination (Contd.) by Mr. Tekell ---------- 2520
    • Cross-Examination by Mr. Deshazo------------------ 2553
    • Redirect Examination by Mr. Hardesty-------------- 2561
    • Recross-Examination by Mr. Deshazo----------------- 2570
  • TODD KNEEBONE
    • Direct Examination by Mr. Becker------------------  2571
    • Direct Examination (Contd.) by Mr. Becker---------  2625
    • Cross-Examination by Mr. Tekell ------------------- 2636
    • Cross-Examination by Mr. Deshazo------------------ 2662
    • Cross-Examination (Contd.) by Mr. Tekell ---------- 2670
    • Cross-Examination (Contd.) by Mr. Deshazo----------  2671
  • MICHAEL E. MATEJA
    • Direct Examination by Mr. Becker-------------------  2673
  • MICHAEL E. MATEJA (called as a witness in behalf of the Defendant Crown Life)
    • Direct Examination by Mr. Becker-------------------  2673
  • Work History - Aetna - Chalke - 
  • 7686 - Q What generally has your work in the last three years at Chalke involved?
    • A I have characterized my practice at Chalke as troubled companies. I have dealt extensively with insolvent life insurance companies and specifically the process by which those companies are dealt with by the guaranty associations of the various states. My major client is the National Organization of Life and Health Guaranty Associations.
  • 2690 - Society of Actuaries - Chief Actuaries Forum. I then subsequently was co-chair of that same group for the following two years. It was really a collection of my peers. Generally 30, 40 people would be in attendance. And it is an opportunity to talk shop, if you will. I can tell you that in the time frames that I did that, which .would have been '88, '89 and '90, I believe, all of the subjects that are at issue in this proceeding were among the topics that would have been discussed.
  • 2690-2691 - Q You have, I take it, taken a look at Mr. Ferguson's policy?
    • A Yes, I have.
    • Q Okay. I think it's called a Conserver-Plus. Briefly, how does that policy work? What's it for, and what's the design of it?
  • 2694 - Q Was this policy typical of others issued by the companies at the time?
    • A Yes. In my opinion, it is.
  • 2694 - QAnd you know -- well, can you -- from the policy, can you determine the elements of the policy that are guaranteed to the policyholder as distinguished from those elements that are not?
    • A Yes, you can. The -- the guaranteed elements of the policy are a -- a death benefit of five million dollars payable upon the second to die of the insureds. An annual premium of $22,880 is guaranteed.
  • 2695 - Q Well, are there elements -- what elements of this policy, as they might affect a policyholder such as Mr. Ferguson, are not guaranteed?
  • 2707 - Reputation of company - reducing dividend rates
  • 2719 - A Life insurance companies are like any other organization, that they -- they have to sell to survive, if you will.