2. How to Avoid Litigation & Policy Valuation
Richard L. Harris, CLU®, AEP®, TEP,
Managing Member, Richard L. Harris, LLC

3. Getting Sued Is No Fun It will take an emotional toll
It may affect your business
It may affect your life
You will not be happy with the result

4. How to Get Sued Be greedy Large case Client from hell
Do the wrong thing
Rely on someone else who is an "expert"

5. Lawsuit Issues Premium finance Replacement Equity index universal life
Part of an estate plan

6. Premium Finance Candidates
Wants or needs the insurance
Is very very financially sophisticated
Has an exit strategy (usually short-term financing)
Client's advisors are part of the process

7. Premium Finance Problems
Someone worth $5,000,000 or more is automatically a candidate
Just because you can doesn't mean you should
Does not have need for the amount of insurance or for permanent insurance
Comparisons inappropriate or not done at all
Client lacks financial sophistication
Client's advisors not in the loop
Exit strategy involves renewing the loan and having it paid off either from policy values for at death of insured

8. Premium Finance Problems
Don't know yourself
Haven't established the need
Don't get detailed illustrations both of other insurance options and what can go wrong
Rely on premium finance "expert"
Some people see lawsuits as a cost of doing business

9. Equity Index Universal Life
Few understand it
It is NOT a way to get equity upside while avoiding downside
Carrier illustrations have been misleading and/or wrong – make assumptions that won't happen
Carrier options re cap rate, participation rate, floor rate, expenses and cost of insurance
John Hancock Rate Translator or SFSP Software

10. Replacements
Make sure all comparisons are apples to apples and accurate
Make sure you have shown ALL the relative comparisons
Make sure you understand the client's goals
Have client's advisors involved

11. The Carriers
It's not a question of whether the carrier will do something they tell you they won't do
It's more a question of how much premium is involved for the carriers to become more "understanding"
Because the carriers have "approved vendors" they recommend doesn't mean that the carriers have really vetted the people and/or the program
If a carrier wants an insured to sign a "hold harmless" agreement – BEWARE

12. How to Protect Yourself
Do the right thing
If you don't know find an independent expert who does
If you can't get a satisfactory explanation that you understand don't do it
Beware the client from hell – walk away
If it sounds to good to be true…

13. Thank You Richard L. Harris, CLU®, AEP®, TEP,
Managing Member, Richard L. Harris, LLC