Opinion ID: 1896463
Heading Depth: 1
Heading Rank: 6

Heading: interest sensitive plan

Text: FOR GREEN, BONNIE C Age 47 Female Nonsmoker Face Amount: $500000 Annual ISP Premium: $8115.00 GUARANTEED PROJECTED VANISH8.500% END OF AGE AT ANNUAL SURRENDER DEATH ANNUAL SURRENDER DEATH YEAR EOY PREMIUM VALUE BENEFIT PREMIUM VALUE BENEFIT ======= ====== ======= ========= ======= ======= ========= =======  1 48 8115.00 0 500000 8115.00 0 500000  2 49 8115.00 0 500000 8115.00 0 500000  3 50 8115.00 2920 500000 8115.00 2920 500000  4 51 8115.00 8750 500000 8115.00 8750 500000  5 52 8115.00 14795 500000 8115.00 14795 500000  6 53 8115.00 21045 500000 8115.00 21587 500000  7 54 8115.00 27495 500000 8115.00 32754 500000  8 55 8115.00 34160 500000 8115.00 46762 500000  9 56 8115.00 44790 500000 8115.00 63944 500000 10 57 8115.00 53997 500000 0.00 72707 500000 11 58 8115.00 64185 500000 0.00 82294 500000 12 59 8115.00 75413 500000 0.00 92784 500000 13 60 8115.00 87726 500000 0.00 104267 500000 14 61 8115.00 101163 500000 0.00 116845 500000 15 62 8115.00 115736 500000 0.00 130468 500000 16 63 8115.00 125178 500000 0.00 138316 500000 17 64 8115.00 134755 500000 0.00 146588 500000 18 65 8115.00 144432 500000 0.00 155340 500000 19 66 8115.00 154202 500000 0.00 164632 500000 20 67 8115.00 164071 500000 0.00 174388 500000 Age 65 8115.00 144432 500000 0.00 155340 500000 Age 75 8115.00 247024 500000 0.00 278150 500000 What other documents, if any, the Greens saw at that meeting before they decided to purchase the policy is disputed. Viewing the evidence in a light most favorable to the Greens, as our standard of review requires, we will assume that the Greens did not see the following language, which appears at the bottom of the Statement of Policy Values, before they received the policy: THE CURRENT VALUES ARE BASED ON OUR DECLARED INTEREST AND COST OF INSURANCE RATES. THESE MAY CHANGE WITH FUTURE CONDITIONS. THE CURRENT VALUES ARE BASED ON AN ANNUAL MODE OF PAYMENT. A MORE FREQUENT MODE OF PAYMENT WILL RESULT IN LOWER VALUES DUE TO INTEREST COMPOUNDING. CURRENT CASH VALUE IN EXCESS OF THE GUARANTEED VALUE MAY BE USED TO PAY PREMIUMS. ON THE GIVEN PROJECTED BASIS, PREMIUMS WOULD NOT BE REQUIRED AFTER THE 9TH YEAR. ADDITIONAL PREMIUM MAY BE REQUIRED TO KEEP THE POLICY IN FORCE IF: 1) PREMIUMS ARE NOT PAID WHEN DUE, OR 2) INTEREST PAID IS LESS THAN PROJECTED, OR 3) COST OF INSURANCE RATES ARE INCREASED. (Capitalization original.) In addition, May was present at the meeting. [2] The Greens testified at trial that May had been up-front with them in everything he had handled for them, that they had no problem with anything May did in selling the policy, and that the jury should not find May responsible for some alleged fraud or lying. May testified that he explained the specific policy to the Greens, that he explained to them that if interest rates went up it would take less time for the policy to pay for itself and that if the rates went down, it would take a longer time for the policy to pay for itself. May's presentation to the Greens took 30 minutes. He explained the Statement of Policy Values previously set out in this opinion, showing what was guaranteed and what would happen if the interest rate remained at 8.5% (that rate was guaranteed for one year only). May showed the Greens that if the 8.5% rate remained the same the Greens could discontinue the premium payments after the ninth year. May testified that he thought the Greens understood the way the policy worked. May further testified that he and Hughes answered every question the Greens asked. May testified that he did not represent to the Greens that the policy would sustain itself in seven years or in nine years. The Greens did not take the stand to challenge May's testimony. After the representations the Greens said that Hughes made to them, the Greens received documents showing that the policy they purchased was an Interest Sensitive Policy; that under the column headed Guaranteed on the Statement of Policy Values the annual premium for the policy was $8,115 until Bonnie reached age 75; that under Projected Vanish  8.500%, the annual premium was $8,115 through the ninth year of the policy. In addition, May had explained to the Greens that if interest rates went down it would take longer than nine years for the policy to pay for itself. Likewise, May, who was up-front with the Greens and with whom they had no problem about anything in selling the policy, was present and answered all questions asked of him by the Greens. The Greens paid the premiums on the policy for nine years. They were then told that they would have to pay additional premiums. The Greens then sued Alfa.