How the Policy Works - Walker vs. LSW
- The fact that we charge people fees that we have disclosed and that fees reduce the value of your policy, and if your policy keeps reducing in value, it will lapse, is not a fraud.
- That's common sense.
- That's how life insurance works. (p171)
-- Closing Argument by Mr. Martens, Defendant Attorney - LSW, Life Insurance Company of the Southwest
2014 0425 – DOC 813 – Trial Transcript – Day 12 – Walker v LSW – 224p
- (p157) - Bucket - [Bonk: Trowbridge-?] / How the Policy Works - <WishList - Exhibit 632>
- Q Mr. Cooper when he was providing this generic discussion of these insurance options, he actually talked to you about insurance mortality and expense charges; correct?
- A I don't recall him talking about that.
- Q Okay. Well, let's pull up Exhibit 632 which I believe is already in evidence. If we go to page 362 on the bottom. We've looked at this, what we call, the bucket diagram for lack of a better term.
- Do you remember that?
- A Yes, I do.
- Q Did you look at this bucket diagram back in 2007?
- A I looked at it briefly.
- Q Did Mr. Cooper discuss this bucket diagram with you to help you understand how the policy worked?
- A No. He was focusing on how the money would come out of the residence and go into this bucket, and out of this bucket would come money to fund the policy. <Howlett>
2014 0416 – DOC 809 – Trial Transcript – Walker v LSW – 236p
- (p40-41) - Q: Could you describe for the jury what you were trying to convey when you drew this drawing, Exhibit 774, on the back of her illustration. - <WishList - Exhibit 774>
- A: Jeffrey Stemler, Agent: This is -- when we are sitting down talking about insurance, we try to explain to the prospects exactly how the insurance works.
- So this is part of our talk that we give to explain how it works.
- So this would be a build slide.
- This didn't just start there.
- I drew a line on the bottom and I said: When you buy insurance, there is a minimum amount that you must pay for insurance to pay for the costs and put the policy in force.
- And I drew the line and I wrote minimum, and I would ask who do you think sets that price.
- Some people will say: I don't know.
- Others: Well, the insurance company.
- I go, yes, you're correct.
- And I said: They have actuaries, and the actuaries, their job is to figure out how much they need to collect for any given amount based on the age of the person so that they can cover the risk and also still make a profit.
- And I drew the line and I wrote minimum, and I would ask who do you think sets that price.
- I said: But there's another line that we need to be concerned about, and then I draw the line up on top and I put the max there.
- And I say this is the maximum you can pay for a contract.
- I said: Do you know who sets that limit?
- People will often say: Well, the insurance company; right?
- And I say: No. It's actually the government.
- And I say this is the maximum you can pay for a contract.
- In the example we'll often say: Well, let's just assume that this is $500,000 that we are dealing with here and the minimum premium is a thousand dollars and the maximum premium is $5,000.
- Why would anyone put $5,000 into a contract if you could buy the same amount of coverage for only 1,000?
- So this is part of our talk that we give to explain how it works.
2015 - LC - Walker vs Life Insurance Company of the Southwest - TRIAL DAY 11 - Case 2:10-cv-09198-JVS-JDE Document 820 Filed 12/01/15 Page 40 of 279 Page ID # 33532 --- [BonkNote]