Fill and Sign the Trade Practices Form

IN THE UNITED STATES DISTRICT COURT FOR THE ____________ DISTRICT OF ___________ ___________________ DIVISION NAME OF PLAINTIFF )       ) ) V. ) NO.       ) ) NAME OF DEFENDANT )       ) ) COMPLAINT JURY TRIAL DEMANDED COMES NOW plaintiff, _________________, by and through his attorney, and for his cause of action against Defendants, _________________ (hereinafter "_____") and _________________, states as follows: 1. Plaintiff is an adult resident citizen of _________________ County, ______________ residing at ______________. 2. Defendant, _________________, is a foreign corporation authorized to do business in the State of ____________. Its registered agent for service of process is the Commissioner of Insurance for the State of _______________. 3. Defendant, ______________, is a _____________ corporation authorized to do business in the State of ____________. Its registered agent for service of process is ____________, ______________, ____________, __ ______. 4. On or about __________ __, ____, Plaintiff applied for a life insurance policy in the amount of $________ from defendant ____________. At all pertinent times thereafter, ____________ as covered under life insurance policy number _____________ through _____________ and issued by Defendant, ______________, copy of the policy is attached as Exhibit A. 5. When plaintiff applied for the life insurance policy, he stated and made clear that he wanted a life insurance policy that would be paid - up at time of his retirement at age 65 and that otherwise he would not purchase the policy. The illustration shown to Plaintiff at that time represented that it would perform as illustrated and would not require any additional premiums after age 65. Defendants confirmed to Plaintiff that the policy would perform as illustrated - - i.e., the premiums would vanish at age 65. On _________ __, ____, Defendant, _________________, advised Plaintiff that premiums after age 65 would be required. 6. Defendant, _________________, fraudulently concealed from Plaintiff fundamental facts and information concerning the vanishing premium illustration by which sale to the Plaintiff was induced. ______________ and its agent, _____________, fraudulently misrepresented the performance of its policy under existing market conditions. Additionally, Defendant, ______________, and its sales representative, ______________, fraudulently concealed from Plaintiff the following material facts: (a) That the performance of the "premium" concept as illustrated by _____________ depended upon dividends which were ___________ __, ____ illustrated at abnormally high rates and that even incremental reductions in the dividend rates to continue paying premiums for many years beyond the schedule illustrated in the ___________ policy illustration; (b) That the interest rate factor in the _________________ dividend scale was not supported by current earnings, and that the company had "propped up" its dividends in order to continue to illustrate at extraordinarily high rates; (c) That _____________ knew its dividend scale was unsuitable in the existing market, but at the urging of its marketing representatives, continued to sell its participating products based on illustrations computed at and dependant upon dividend scales based on unrealistic interest rate factors. ______________ engaged in this deceptive practice for the purpose of enabling the company to present competitive illustrations which would be marketable in the highly competitive insurance market then existing; (d) That premiums on the _________________ policy would not "vanish;" (e) That the _________________ policy of insurance would not, in fact, pay for itself as represented and illustrated by _________________ if the current dividends payable on the policies declined; (f) That the "sales illustration" employed by _________________ to represent its policies as being paid by the "vanishing premium" concept employed intricate actuarial operations and devices such as "paid - up additions", surrender of accumulated dividends, payments from policy values, and other actuarial devices which made the illustration highly volatile and sensitive to even slight reduction in dividend interest rates; (g) That the _________________ sale _________________ the viability of the vanishing premium concept _________________ were premised on intricate actuarial undisclosed assumptions lacking any reasonable basis in fact. Without disclosure of the foregoing material facts and information, the sales presentations and illustration prepared, approved and disseminated by _________________ and used by its agent, _________________, was inherently false, misleading and deceptive. 7. Additionally, Defendant, _______________, intentionally failed to properly train its agents and sales force in the sale of policies employing the "vanishing premium" concept. _____________ encouraged its agents to represent the company as conservative in its approach to dividend projections and to use as a sale tool the company history of meeting dividend projections. ______________ intentionally failed to properly train and supervise its agents and sales representatives concerning the nature of its interest sensitive computer - generated vanishing premium sales illustration. 8. After inducing Plaintiff to purchase the policy in question through "vanishing premium," Defendant ____________ engaged in a deliberate course of conduct, which concealed from Plaintiff the nature and extent of the deceptive sales tactic used to sell him the policy. The actions of this Defendant were designed to and did, in fact, conceal from Plaintiff the deceptive acts and actuarial practices upon which the sale to the Plaintiff had been made. Plaintiff did not discover, would not through the exercise of reasonable diligence have discovered that _______’s deceptive sales tactics and intricate scheme of fraud and concealment had misled him. 9. The actions of Defendant, ____________, constitute fraud, fraudulent misrepresentation, fraudulent inducement, and fraudulent concealment, rendering Defendant ___________ liable to Plaintiff for actual and punitive damages. The misrepresentations, omissions and concealment of material facts were intentional and deliberate and were part of a willful scheme or course of conduct through which ______________ sought to and did induce Plaintiff to purchase the policy in question on the basis of and in reliance upon fraudulent misrepresentations and omissions. 10. At all times pertinent hereto, Plaintiff performed all his obligations under and satisfied all conditions of the insurance policy in question. 11. Defendant, _______________, to the extent, if any, that it failed to procure the coverage promised on the terms promised, breached its individual contractual obligation to Plaintiff to procure coverage as promised, such breach proximately resulting in damages, in an amount to be determined at trial, equal to the additional premiums necessary to pay for the policy after Plaintiff reaches 65 years of age. 12. Defendant, _________________, to the extent, if any, that it misrepresented the cost of coverage to be provided and/or failed to inform Plaintiff that Defendant, _________________, would not honor the illustration in question, negligently or intentionally misrepresented material facts upon which justifiably relied to his detriment and proximately in an amount to be determined at trial, equal to the additional premiums necessary to pay for the policy after 65 years of age. 13. As a further proximate result of the aforementioned wrongful conduct of Defendants, Plaintiff has suffered anxiety, worry, mental and emotional distress, and other incidental damage, all to his general damage in the sum of $________.______. 14. Defendant ____________ has willfully and intentionally wronged Plaintiff, or has treated him with such gross and reckless negligence as is equivalent to such a wrong, entitling Plaintiff to punitive damages in the sum of $______.____. WHEREFORE, Plaintiff demands judgment against Defendant _________________ for breach of contract to procure insurance and for negligent and/or intentional misrepresentation in an amount to be determined at trial and for judgment against Defendant _________________ in the total sums previously alleged and for all costs of this action. Respectfully submitted, ________________________________