Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page1of19 Page ID #:15283 EXHIBIT 4: [PROPOSED] EXHIBITS TO SUPPLEMENTAL DECLARATION OF JOEL FLEMING Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page2of19 Page ID #:15284 EXHIBIT A Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page3of19 Page ID #:15285 1 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 2 SOUTHERN DIVISION 3 a ened a aia |} OYCE WALKER, KIM BRUCE 5 HOWLETT, and MURIEL SPOONER on behalf of themselves and 6 all others similarly situated, 7 Plaintiffs, 8 VS No. CV 10-9198-J|VS (RNBx) 9 LIFE | NSURANCE COMPANY OF THE SOUTHWEST, a Texas 10 corporation, and DOES 1-50, 11 Defendants. 15 DEPOSITION OF JOYCE WALKER 16 San Francisco, California 17 Friday, January 27, 2012 18 Volume | 21 Reported by: GINA GLANTZ 22 CSR No. 9795, RPR, RMR 23 J} OB No. 131931 25 PAGES 1 - 244 Page l Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page4of19 Page ID #:15286 we up to? THE REPORTER: 19. (Walker Exhibit 19 was marked. ) MR. SHAPIRO: Maybe the court reporter can just mark the one that Charlie -- if you wouldn't mind. MR. FREIBERG: That's 20. THE REPORTER: | don't have a 20 yet. BY MR. SHAPIRO Q The court reporter has handed you a document which has been marked as Walker Exhibit 19, and it bears a Bates number |W000678. Do you recognize your signature at the bottom of that? A Yes, | do. Q And the date next to that? A 1/11/08. Q On January llth, 2008, did you sign your name acknowledging your receipt of your life insurance policy, a life insurance buyer's guide, an |UL buyer's guide and a proposal which matches the policy you received? A | did sign this on that date. Q Did you get each of those documents that are referenced in the one sentence above which you signed? A | received the policy, the buyer's guide, but not an illustration. Q Okay. Just so we're clear, you received the Page 205 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page5of19 Page ID #:15287 1 policy, the life insurance buyer's guide, and also the I UL 2 buyer's guide? 3 A | don't know what the |UL buyer's guide is, so | 4 don't know what that is. 5 Q Okay. Well, fair to say, on January 11th, 2008 6 you certified with your signature that you received those 7 first three things, correct, the policy, the life 8 insurance buyer's guide and the | UL buyer's guide? 9 A It says "if applicable" and | don't know if it was 10 applicable. 11 Q Okay. So you read "if applicable" applying to the 12 |UL buyer's guide? 13 A Correct. 14 Q Okay. Let's take the first one, the policy. Did 15 you get a copy of your life insurance policy? 16 A i ai dy 17 Q Did you read it? 18 A | did not. | assumed that the illustration from 19 October 3rd would be a fair and accurate description -- 20 depiction of the policy. 21 Q Okay. So just so we're clear, on this date, ney) January 11, 2008, you handed over a check for $112,000? 23 A That is correct. 24 Q And you handed over a check for $112,000 for a 25 life insurance policy; correct? Page 206 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page6of19 Page ID #:15288 1 MR. FREIBERG: Objection. Argumentative. 2 THE WITNESS: | handed over a check for a 3 retirement vehicle that | believed would perform as in the 4 illustration. 5 BY MR. SHAPIRO 6 Q Okay. And -- 7 A | mean -- 8 Q You were handed -- 9 A |'m sorry. 10 Q No, keep going. 11 A At this juncture, where |'m sending -- handing 12 over a check and the policy 1s coming from Mr. Botkin and 13 Mr. Stemler, my buying decision had already been made. 14 Q Okay. So in the same meeting, you handed this 15 gentleman a check for $112,000, right, and you got, in 16 return, a bunch of documents, one of which was something 17 called a life insurance policy that you purchased; right? 18 A Yes. 19 Q Did you have an opportunity to read that life 20 insurance policy if you wanted to? 21 A Not at that time, | did not. 22 Q Did you take it home with you that night? 23 A | left a few minutes after this very short meeting 24 to go to Los Angeles to work for the better part of the 25 next few weeks, and | did not take it with me. Page 207 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 7of19 Page ID #:15289 Q Okay. So your schedule was busy, so you decided not to read the life insurance policy? A | decided not to read it because | assumed that the October 3rd illustration, which had been used extensively in the explanation of the policy, was a fair and accurate depiction of the policy. Q Have you ever read the life insurance policy? A | read parts of it while preparing for the -- writing the letter to Brenda, and have read parts of it in preparing for the deposition. Q Did anyone prevent you fromreading that life insurance policy, ma'am A No. Q Was that your decision? A lt was my decision, based on the time that -- the illustration was a depiction, a fair and accurate and complete depiction, of the policy. Q As you sit here today, do you think it was a good idea not to read the life insurance policy? A | can't Say. Q Today, if you were to buy a product that's called the life insurance policy, and hand over a check for $112,000, would you read it? MR. FREIBERG: Objection. Incomplete and improper hypothetical Page 208 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page8of19 Page ID #:15290 THE WITNESS: | don't know what | would do. BY MR. SHAPIRO Q Okay. Did you read the life insurance buyer's guide? A | did not. Q Was that your decision? A Yes. Q Fair to say if you don't know if you actually received an |UL buyer's guide, you don't know if you actually read an | UL buyer's guide? A Correct, | don't know what IUL stands for. If you know, that could clarify for me if | -- If it's a document that | received. Q You signed a certification acknowledging receipt of a number of items, if applicable, and you don't know what one of those items mean? MR. FREIBERG: Objection. Argumentative, asked and answered. THE WITNESS: That's correct. It looks as if this Statement says "if applicable." BY MR. SHAPIRO Q Okay. You just don't know -- Which could mean -- Oo Lt YOU got it OF HOt? > Which could mean that that was not applicable or Page 209 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page9of19 Page ID #:15291 that one or the other was applicable. | can't -- | don't know at this point which one the "if applicable" refers Co. Q Did you receive a proposal “which matches the policy | received"? A [ did. not. Q Okay. So that part of your acknowledging receipt is just simply false? A | signed an illustration, but did not receive a copy of that illustration. Q I'm just looking at this exhibit, which is Walker Exhibit No. 19, and there's something called an owner's Signature. It's your signature, and you're signing one sentence in which you're acknowledging receipt of some documents. The last document you're acknowledging receipt of is something called a proposal, which matches the policy you received; right? A Um- hmm, yes. Q Okay. Is this a true acknowledgment that you Signed? MR. FREIBERG: Objection. Asked and answered, argumentative. THE WITNESS: What | believe occurred is that had an illustration placed in front of me, was signed, but was not left with me, and possibly, | was told, that Page 210 Sarnoff, A VERITEXT COMPANY 877-955-3855 Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 10o0f19 Page ID #:15292 EXHIBIT B Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page11of19 PageID #:15293 KIM BRUCE HOWLETT - Volume || May 10, 2012 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SOUTHERN DI VISION <0 002 J) OYCE WALKER, KIM BRUCE HOWLETT, and MURIEL SPOONER on behalf of themselves and all others similarly situated, Plaintiffs, es Case No. CV¥=10-9196-] V5 LIFE | NSURANCE COMPANY OF THE SOUTHWEST, a Texas corporation, and DOES 1-50 Defendants. DEPOSITION OF KIM BRUCE HOWLETT Thursday, May 10, 2012 VOLUME || (Pages 194 - 289) 2°10 PM, 101 California Street 2300 Fil oor San Francisco, California Corey W. Anderson, CSR 4096 l J, Toll Free: 800.211.DEPO Facsimile: 415.591.3335 Suite 1100 44 Montgomery Street ES | IRE San Francisco, CA 94104 www.esquiresolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 12o0f19 Page ID #:15294 KIM BRUCE HOWLETT - Volume || May 10, 2012 you buy a policy? MR. FREIBERG: Objection. Argumentative THE WITNESS: | bought a policy based on the July 27th illustration. BY MR. SHAPIRO: Q. Did you ever read the policy you purchased? A. | have not read the policy. Ever in your life? | have read a portion. When? Q A. Q A . As part of information that was compiled by my legal team. Before or after you sued? After. So it's your testimony that you bought an insurance policy, but never read it until after you filed a class action lawsuit based on the policy? A. | purchased a policy based on the July 27th illustration. Q. Did you -- MR. FREIBERG: Wait. THE WITNESS: | did not -- and |! did not read it subsequently, subsequent to purchase. BY MR. SHAPIRO: l J, Toll Free: 800.211.DEPO Facsimile: 415.591.3335 Suite 1100 44 Montgomery Street ES | IRE San Francisco, CA 94104 www.esquiresolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 13o0f19 Page ID #:15295 KIM BRUCE HOWLETT - Volume || May 10, 2012 Q. Did you have a chance to read your insurance policy? es Was it your decision not to? Yes And you take responsibility for that decision as well, sir. Ri ght? MR. FREIBERG: Objection, vague and ambi guous THE WITNESS: Yes. BY MR. SHAPIRO: 0 And notwithstanding your counsel's objection, you understand what it means to take responsibility for something Ri ght? MR. FREIBERG: Objection, vague and ambi guous THE WITNESS: | think it depends on the context as to what you mean by responsibility. BY MR. SHAPIRO: Q. Are you responsible for the honesty of the court papers that are put in front of the federal court with your name on it? MR. FREIBERG: Objection, vague, l J, Toll Free: 800.211.DEPO Facsimile: 415.591.3335 = Suite 1100 44 Montgomery Street ES | IRE San Francisco, CA 94104 www.esquiresolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 14o0f19 PageID #:15296 EXHIBIT C Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 15o0f19 PageID #:15297 MURIEL L. SPOONER June 29, 2012 WALKER vs. LIFE INS. CO. OF THE S.W. Confidential Page 1 UNITED STATES DISCTRICT COURT CENTRAL DISTRICT OF CALIFORNIA } OYCE WALKER, KIM BRUCE HOWLETT, and MURIEL SPOONER, on behal f of themselves and all others Similarly situated, Plaintiffs, Vv. CASE NO.: 10-9198) VS( RNBx) LIFE | NSURANCE COMPANY OF THE SOUTHWEST, a Texas corporation, Defendant. CONFI DENTI AL VI DEOTAPED DEPOSITION OF MURIEL L. SPOONER June 29, 2012 9:10 a.m. Kasowitz, Benson, Torres & Friedman LLP 101 California Street, Suite 2300 San Francisco, California 94111 Reported by Mary Goff - CSR California Certificate No. 13427 Ze ESQUIRE 800.211.DEPO (3376) EsquireSolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 16o0f19 Page ID #:15298 MURIEL L. SPOONER June 29, 2012 WALKER vs. LIFE INS. CO. OF THE S.W. Confidential Page 156 to read your insurance policy carefully? MR. FREIBERG: Objection; vague and ambiguous A They -- had -- had they had this on the list of important things to consider. So yeah, you know, it would be something you would consider doing Q (BY MR. SHAPIRO) Did you read your policy carefully, as stated by the National Association of Insurance Commissioners? A No. Q Did you read your policy at all? A Not after just receiving it, no. Q Have you ever in your life read your insurance policy? A | have read through it now. Q When was the first time you read your insurance policy? A Again, reading through it when we went through it with our -- with Jack Dugan Q So what, more than a year after you purchased it? A Approximately, yes Q Any reason why you couldn't have read the insurance policy when it was provided to you and you acknowledged receiving 1t in October of 2007? A No. There would be no reason, Ze ESQUIRE 800.211.DEPO (3376) EsquireSolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page17of19 Page ID #:15299 MURIEL L. SPOONER June 29, 2012 WALKER vs. LIFE INS. CO. OF THE S.W. Confidential Page 232 A Yes, Q And that was the same evening meeting in which you and your husband reviewed for the first time the July 27 illustration, correct? A Yes, that Is correct. Q Sequentially in that meeting, which did you do first, dictate your application or review the illustration? A | don't recall the order Q Okay. Do you remember -- strike that. Were you also in Mr. Cooper's office on October 11, 2007, when he reviewed with you the as issued illustration -- MR. FREIBERG: Objection. Q (BY MR. SHAPIRO) -- Spooner Exhibit 12? MR. FREIBERG: Objection; misstates the testimony of the witness A As | recall, we met in his office to receive this Q (BY MR. SHAPIRO) Were you in a conference room or in his office? To my best recollection, it was his office. Husband was there, right? (es, that’s correct, Anyone else in the room ZB ESQUIRE 800.211.DEPO (3376) EsquireSolutions.com Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 18o0f19 Page ID #:15300 EXHIBIT D Case 2:10-cv-09198-JVS -RNB Document 346-4 Filed 10/02/12 Page 19o0f19 Page ID #:15301 Gi - 2 ee ' Policy Cost and Benefit Summary Prepared for JOYCE ANN SCHMIDTBAUER LS015667000-UDA 3HN > Age 48 Presented by JEFFREY STEMLER Verified Standard NT Female $2,464,759 LSW Provider with benefits previously described. State - CA \ Guaranteed Guaranteed Guaranteed Current BasisB Current BasisB Current Basis B Policy Annual End Year Net End Year Net Annual End YearNet End Year Net Year CashFlow Cash Value Death Benefit Cash Flow* Cash Value* Death Benefit* 5 $(112637) $446,792 $2,464,759 =—s« 3 (112,637) $ 533,218 «8 «2,464,759 19 0 423,404 2,464,759 . 9 734,572 2,464,759 20 (48,198) 530,267 2,464,759 (48,198) 2,086,807 2,464,759 23 (48,198) 627,048 2,464,759 (48,198) 2,817,349 . 3,239,952 Averaged Averaged Averaged Net Policy Annual Net Equity Death Benefit Year CashFlow* End Year* End Year* 5 $112,637) $ 488,472 $ 2,464,759 10 0 567,822 2,464,759 » 20 (48,198) 1,230,285 2,464,759 23 (48,198) 1,543,496 2,464,759 ® BUSINESS ny NWP R082 * Benefits and values are not guaranteed, The assumptions on which they are based are subject to chang by i insurer. Actual results may be more or less favorable. y T have received a copy of this illustration and understand that any non-guaranteed elements ilinstrated are tint change and could be cither higher or lower. The agent has told me they are not guaranteed. | UNDERSTAND THAT HISTORICAL PERFORMANCE OF THE S&P 500° INDEX SHOULD NOT BE CONSIDERED A REPRESENTATION OF THE PAST OR FUTURE PERFORMANCE FOR ANY OF THE INDEXED © STRATEGIES IN THE POLICY. Date / Ji 123 Applicant By. , JOYCE ANN SCHMIDTBAUER I certify that this idustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements are inconsistent with the illustration. Date/ fe Agent € “cd : LIFE INSURANCE COMPANY OF THE SOUTHWEST, DALLAS, TX 75247-4921 . i December 27, 2007 This illustration is not complete without all pages. Pago 23 of 23 TC37133{ 1007} Copyright 13 Confidential GINA GLANTZ - NO. 9795 LSW 00002303