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.
• 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.
• 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?  (p40-41)

2015 - 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