Rufina Reyes Yanez v. American General Life Insurance Company

ACCEPTED 04-15-00548-CV FOURTH COURT OF APPEALS SAN ANTONIO, TEXAS 11/18/2015 5:33:07 PM KEITH HOTTLE CLERK

CAUSE NO. 04-1S-00S48-CV

IN THE COURT OF APPEALS FILED IN 4th COURT OF APPEALS FOURTH COURT OF APPEALS DISTRICTSAN ANTONIO, TEXAS SAN ANTONIO, TEXAS 11/18/2015 5:33:07 PM KEITH E. HOTTLE Clerk

RUFINA REYES YANEZ,

Appellant

v. AMERICAN GENERAL LIFE INSURANCE COMPANY,

Appellee FROM THE 341 ST mDICIAL DISTRICT COURT, WEBB COUNTY, TEXAS

TRIAL COURT NO. 2014CVF000504-D3

HONORABLE REBECCA RAMIREZ PALOMO, mDGE PRESIDING

SUPPLEMENT TO APPELLANT'S MOTION TO REINSTATE THE APPEAL

TO THE HONORABLE COURT OF APPEALS:

Appellant, RUFINA REYES YANEZ, submits this supplement to Appellant's motion to reinstate the appeal of the Court's consideration.

1. Appellant has always made it resounding clear that she wants to set aside the summary judgment rendered against her on July 21,2015. Appellant filed her notice of appeal on September 3, 2015, which was within 15 days of the date

Page II the notice of appeal was due. See Rules 4.1 10.5(b), 25, 1,26.3, she filed a motion for extension of time to file her notice of appeal and on September 23, 2015, she filed a motion for extension of time to file her notice of appeal and on September 23,2015, she filed her motion to abate the appeal.

3. Attached as Exhibit A is a true copy of the Docket sheet which was left out of the Clerk's Record that was filed on September 18, 2015. The District Clerk failed to include in the Clerk's Records Appellant's motion for mandatory judicial notice filed on July 10, 2015, which included incontrovertible evidence that Appellee had been notified on November 1, 2001, that Appellant's husband had died, contrary to Appellee's repeated assertions that Appellee had not learned ofthe insured's death until November of2003. See Exhibit B.

4. Appellant's valuable right to appeal should not be lost because of a hyper technical interpretation of the Texas Rules of Appellate Procedure. See Verburg! v. Dormer, 959, S.W. 2d 615, 616-17(Tex.1997).

submitted,

.~

ARMANDO TREVINO Attorney At Law State Bar No. 20211100 1519 Washington St, Suite # 1. Laredo, Texas 78040 Telephone No. (956) 726-1638 Email: armandotrevinolaw@hotmail.com Attorney For Appellant

Page 12

<;(JA- Subscribed and sworn to before me on the ~ day of November, 2015, by .- \j.\!).(11111,il ,f'n 11 Armand0 Tref:~.~~~t~~ Appe ant. ~'" ". "*0'<, . ~ ~""t-..R'{ Pu···.~ ~ '"'J;, 0 .......-p "s ~\~ .;)~ t . . . ""1'1'" OF \".,..... ! ~ ···.;€'XP1RB~.·· ~ N t Public State of Texas , ~.../ 01 ~2'2~20\1 ","" 1"1/ ~ Il/tlil",,'e'.....RTIFICATE OF SERVICE I certify that on November /Z ,2015, I served a copy of the Motion To Reinstate Appeal was sent via hand-delivery or e-service to JASON A. RICHARDSON, EDISON, McDOWELL & HETHERINGTON LLP, 3200 Southwest Freeway, Suite 2100, Houston, Texas 77027, jason.richardson@emhllp.com, Webb County District Clerk's office Esther Degollado, and Ana Alcantar.

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,..-,-ENDAR As of 11/18/2015 2:36:58 PM

I Case # 2014CVF000504 D3

Rufina Reyes Yanez vs. American General life Insurance Company

Type: Contract

Date Filed: 3/18/2014 12:00:00 AM

Court: 341st District Court

Complaint: Contract

IParty Information II Attorney Information , , Name Affiliation II Name Affiliation I

~ C~~~~~~ General Lif~ I~ns~rance De;e~~:~~~ 1;:::n::i:::;:O:--:~::~~~::;:~~::;e~~f:-~::J Rufina Reyes Yanez plai ntiff -------------------------~-------------~-~---------------~--

- - -- - - - --- - - - --- -.------- ---------- ---------~-

ICourt Dates Date Description Status I ---------~-

17/13/20159:00:00 AM Motions Open 5/18/2015 8:00:00 AM Jury Trial Canceled 5/4/2015 9:00:00 AM Pre-Trial Open 3/5/20159:00:00 AM Motion For Continuance Open \3/5/2015 9:00:00 AM Motion For Summary Judgment Open 10/2/2014 9:00:00 AM Status Open 9/15/20149:00:00 AM Status Postponed Motions Open

~ /30/2014 1:30:00 PM 6/30/2014 1:30:00 PM Special Exceptions Open 6/2/2014 1:30:00 PM Calendar Call Open . -----~---.------ ,-----~----,-- -----------------

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IActivity Date Type Description 11/17/2015 'IMG* LETTER FROM RAMOS TREVINO DATED 11/13/15 (RE: 4:59:21 PM Filing Papers REQUEST TO PREPARE THE CLERL'S RECORD ON APPEAL). EjG

SPOKE WITH jUILIE FROM ATTY. ARMANDO TREVINO'S OFFICE TODAY REGARDING E-MAIL SENT TO MS. DEGOLLADO ON 11/16/2015 CLERKS RECORD. ADVISED HER THAT A CLERKS RECORD WAS Notes 8:16:19 AM SENT TO THE FOURTH COURT OF APPEALS ON 9/18/15 AND IF A NEW CLERKS RECORD IS REQUESTED. SHE WOULD ADVISE MR. TREVINO AND WOULD GET BACK TO ME. (SL) 11/3/2015 judgement *IMG* JUDGMENT (FOURTH COURT OF APPEALS) SL 8:49:57 AM

10/28/2015 Filing Papers *IMG* MEMORANDUM OPINION (FOURTH COURT OF APPEALS). 8:22:23 AM SL 110/6/2015 Order *IMG* ORDER (FOURTH COURT OF APPEALS) 10/5/15. (SL) 8:54:42 AM 'IMG* LETTER FROM FOURTH COURT OF APPEALS DATED 10/1/2015 Filing Papers 9/28/15. 9SL) {RE: APPELLEE'S RESPONSE TO APPELLANT'S 3:58:15 PM NOTICE OF COURT TO ABATE FILED *IMG* LETTER FROM FOURTH COURT OF APPEALS DATED 9/23/2015 Filing Papers 9/22/15. (SL) {RE: ANA ALCANTAR'S NOTIFICATION OF LATE 9:44:11 AM REPORTER'S RECORD} 9/23/2015 *IMG* LETTER FROM FROUTH COURT OF APPEALS DATED 9:42:35 AM Filing Papers 9/21/15. (SL){RE: APPELLANT'S NOTICE OF COURT TO ABATE}

9/22/2015 *IMG* LETTER FROM FOURTH COURT OF APPEALS DATED Filing Papers 1:29:58 PM 9/18/15. (SL) {RE: ELECTRONIC CLERK'S RECORD RECEIVED} 9/22/2015 *IMG* LETTER FROM FOURTH COURT OF APPEALS DATED 1:28:14 PM Filing Papers 9/21/15. (SL) {RE: LETTER TO COURT REPORTER}

9/21/2015 *IMG* LETTER FROM FOURTH COURT OF APPEAL DATED Filing Papers 11:42:08 AM 9/16/15. (SL) {RE: APPELLE'S MOTION TO DISMISS} Clerk's 9/18/2015 *IMG* CLERKS RECORD. (SL) Record 10:57:18 AM (Appeal) 9/18/2015 'IMG* CONFIRMATION FROM FOURTH COURT OF APPEAL (SL) 10:55:17 AM Filing Papers {RE: CLERKS RECORD}

9/15/2015 Docket Sheet *IMG* CIVIL CASE DOCKET SHEET. (SL) 2:49:27 PM 9/11/2015 *IMG* LETTER FROM FOURTH COURT OF APPEALS DATED 9:02:53 AM Filing Papers 9/10/15. (SL) {RE: FEES FOR FILING APPEAL}

"IMG* LETTER FROM FOURTH COURT OF APPEALS DATED 9/11/2015 Filing Papers 9/3/15. (SL) {RE: MOTION FOR EXTENSION OF TIME TO FILE 9:01:22 AM NOTICE OF APPEAL}

9/4/2015 Telephone SPOKE WITH JULIE FROM ATTY. TREVINO'S OFFICE REGARDING 10:21:01 AM Call FILING THE DESIGNATION OF CLERK RECORDS. (SL) 9/4/2015 Filing Papers *IMG* CONFIRMATION FROM FOURTH COURT OF APPEALS. 19:01:36 AM (SL)

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IActivity , Date Type Deseri ption 9/312015 NOTICE OF *IMG* NOTICE OF APPEAL (SL) COpy FORWARD TO COURT 4:48:44 PM APPEAL REPORTER ANA ALCANTAR 'IMG" ORDER DENYING PLAINTIFF'S MOTION TO SET ASIDE THE MAY 13, 2015 ORDER GRANTING DEFENDANT'S 7/2112015 TRADITIONAL MOTION FOR SUMMARY JUDGMENT SIGNED 10:02:43 AM Order 7/20/2015. (SL) FAXED TO ATTY. ARMANDO TREVINO AND f\TTY. JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (SL)

7/20/2015 Filing Papers *IMG* FILING OF A RELEVANT EXHIBIT (E-FILED BY ATTORNEY 3:38:27 PM ARMANDO TREVINO). EjG

7/l3/2015 Filing Papers *IMG* ADVISORY TO THE COURT. (SL) 5:30:29 PM CASE CALLED. HONORABLE JUDGE BECKIE PALOMO PRESIDING. COURT REPORTER ANA ALCANTAR. ATTY. ARMANDO TREVINO 7/13/2015 AND ATTY. JASON RICHARDSON PRESENT. HEARING ON Notes 10:51:20 AM MOTION TO SET ASIDE JUDGMENT. ARGUMENTS HEARD FROM BOTH SIDES. COURT HAS TAKE MOTION UNDER ADVISEMENT. (SL) {COURT KEPT COURTS' FILE} *IMG* DEFENDANT'S RESPONSE TO PLAINTIFF'S MOTION FOR 7/10/2015 Response LEAVE TO FILE RELEVANT DOCUMENTS AND FOR JUDICIAL 13:31:48 PM NOTICE. (ATTACHED WITH ORDER). SL

7/10/2015 *IMG" MOTION FOR LEAVE TO FILE RELEVANT DOCUMENTS Filing Papers 112:36:07 PM AND FOR JUDICIAL NOTICE (ATTACHED WITH AN ORDER). 8G *IMG* DEFENDANT'S RESPONSE TO PLAINTIFF'S MOTION TO SIT ASIDE THE MAY 13, 2015 ORDER GRANTING 717/2015 Response DEFENDANT'S TRADITIONAL MOTION FOR SUMMARY 10:56:46 AM JUDGMENT (ATTACHED WITH AN ORDER, SENT TO COURT I COORDINATOR). EjG I *IMG* NOTICE OF HEARING (MOTION TO SIT ASIDE 6/25/2015 Notices of jUDGMEND SIT FOR 7/13/15 @ 9:00AM. FAXED AND MAILED 8:45:25 AM Hearing TO ATTY. ARMANDO TREVINO AND JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (SL)

6/24/2015 Court Case Court date/time: 7/13/2015 9:00 Hearing Type: 37 Motions 112:58:24 PM Assignment Assignment of court date/time. Status entered as Open

16/12/2015 ~IMG*SECOND SUPPLEMENT TO PLAINTIFF'S MOTION FOR Filing Papers 4:21:33 PM NEW TRIAL (E-FILED BY ATTORNEY ARMANDO TREVINO). EjG

6/12/2015 "IMG* PLAINTIFF'S SUPPLEMENT TO MOTION TO SET ASIDE Filing Papers 3:33:10 PM THE MAY 13, 2015 SUMMARY JUDGMENT. (EjG)

I *IMG* SUPPLEMENTAL PLAINTIFF'S MOTION TO SIT ASIDE THE MAY 13, 2015, ORDER GRANTING DEFENDANT'S 16/12/2015 Motion For TRADITIONAL MOTION FOR SUMMARY JUDGMENT AND IN THE 2:47:11 PM New Trial ALTERNATIVE MOTION FOR NEW TRIAL (ATTACHED WITH ORDER). EjG

6/5/2015 Motion For *IMG* PLAINTIFF'S MOTION TO SIT ASIDE THE MAY 13, 2015, 4:32:44 PM New Trial ORDER GRANTING DEFENDANT'S TRADITIONAL MOTION FOR SUMMARY JUDGMENT. (ATTACHED WITH ORDER). SL NOTICE

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IActivity i Date Type Description ··6rFif::ARiNG~~::R:i:'C'DANDSf::Nt-T6·colTRt·COORDINAT6R:··" . (SL)_

Disposition entered as 408. Disposition code 408: 5/13/2015 Disposition Sumjudgmnt For AMERICAN GENERAL LIFE INSURANCE 3:55:20 PM COMPANY Case Status changed from ACTV to DISP. Case Status ACTV: 5/13/2015 Case Status Active Case Status DISP: Disposed For AMERICAN GENERAL 3:55:20 PM LIFE INSURANCE COMPANY *IMG* NOTICE REGARDING ORDER GRANTING DEFENDANTS 5113/2015 Filing Papers TRADITIONAL MOTION FOR SUMMARY JUDGMENT (E-FILED BY 12:52:20 PM ATTORNEY JASON A. RICHARDSON). EJG *IMG* ORDER GRANTING DEFENDANT'S TRADITIONAL MOTION FOR SUMMARY JUDGMENT SIGNED 5/13/2015. (SL) 5/13/2015 SUMMARY FAXED TO ATTY. JASON RICHARDSON AND MAILED TO ATTY. 12:29:51 PM JUDGMENT ARMANDO TREVINO FROM 406TH CIVIL COURT COORDINATOR CRUZ MALDONADO. (SL)

5/4/2015 Court Case Court ~ate/time: 5/18/2015 8:00 Hearing Type: 4 Jury Trial 4:28:10 PM Assignment Status 'changed from Open to Cance

5/4/2015 *IMG* bRDER GRANTING DEFENDANT'S MOTION TO STAY Order 3:12:27 PM SIGNED 5/4/15. (SL) CASE CALLED. JUDGE BECKIE PALOMO PRESIDING. COURT REPORTER ANA ALCANTAR. ATTY. ARMANDO TREVINO AND ATTY. JASON RICHARDSON PRESENT. PARTIES NOT PRESENT. 5/4/2015 PRE-TRIAL HEARING, ATTYS. ANNOUNCED THAT AN AGREED Notes 13:03:26 PM MOTION TO STAY WAS FILED, COURT GRANTED MOTION, CASE SET FOR JURY SELECTION MAY 18, 2015 PENDING RULING ON SUMMARY JUDGMENT HEARING WITH JUDGE HALE ON MARCH 3, 2015.(SL)

5/1/2015 *IMG* PLAINTIFF'S AGREEMENT WITH DEFENDANT'S MOTION Filing Papers 2:24:43 PM TO STAY (E-FILED BY ATTORNEY ARMANDO TREVINO). EJG

5/1/2015 "IMG* PLAINTIFF'S VERIFIED MOTION FOR CONTINUANCE Filing Papers 2:13:34 PM (ATTACHED WITH AN ORDER). EjG

4/28/2015 *IMG* DEFENDANT AMERICAN GENERAL LIFE INSURANCE Filing Papers 4:25:58 PM COMPANY'S MOTION TO STAY. (SL) *IMG* FINAL PRE-TRIAL REPORT (FILED SENT COURT COURT 4/28/2015 FOR REVIEW) SL ** RETURN BACK FROM COURT UNSIGNED Filing Papers 4:16:05 PM 5/14/15 ***

4/28/2015 *IMG* DEFENDANT AMERICAN GENERAL LIFE INSURANCE Filing Papers 4:12:41 PM COMPANY'S MOTION IN LIMINE. (SL)

4/20/2015 *IMG* AMERICAN GENERAL'S TRIAL EXHIBIT LIST. MG Filing Papers 4:36:43 PM *IMG* ORDER DENYING PLTF'S VERIFIED MOTION FOR CONTINUANCE SIGNED BY JUDGE HALE 3/6/15. (SL) FAXED I ~/ig:~~o~~ Order AND MAILED TO ATTY. ARMANDO TREVINO AND ATTY. JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (SL)

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IActivity Date Type Description -'3]5}2015 Notes·CASE-d.ITEO: ]uDcEoSCAR] HALCSfTIINGTI;.n=ORTLiDcE"--- 1:49:06 PM BECKIE PALOMO PRESIDING. COURT REPORTER ANA ALCANTAR. ATTY. ARMANDO TREVINO PRESENT WITH RUFINA REYES YANEZ. ATTY. BOBBY DEVELAC PRESENT FOR AMERICAN GENERAL LIFE INSURANCE. 1.) HEARING ON PLFTS' MOTION FOR CONTINUANCE, COURT DENIED MOTION ORDER SIGNED IN OPEN COURT. 2.) HEARING ON MOTION FOR PARTIAL SUMMARY JUDGMENT, COURT DEFERRED RULE ON MOTION TO REVISE MOTION AND RULE AT A LATER DATE. (SL)

! 3/4/2015 *IMG* AMERICAN GENERAL'S REPLY IN SUPPORT OF ITS 3:06:11 PM Filing Papers MOTION FOR SUMMARY JUDGMENT. (ORDER ATTACHED) SL

3/3/2015 Filing Papers *IMG* FIRST SUPPLEMENT TO MOTION TO COMPEL ANSWERS 11:03:05 AM TO PLAINTIFF'S REQUEST FOR ADMISSIONS. (SL) *IMG* NOTICE OF HEARING (PLTF MOTION FOR CONTINUANCE 2/27/2015 (SET FOR 5/5/15 @ 9:00AM. FAXED AND MAILED TO ATTY. Filing Papers 2:33:37 PM ARMANDO TREVINO, AND JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (Sl) I Court date/time: 3/05/2015 9:00 Hearing Type: 67 2/27/2015 Court Case Mnt/Contin Assignment of court date/time. Status entered as 1:34:37 PM Assignment Open *IMG* AMERICAN GENERAL LIFE INSURANCE COMPANY'S 2/27/2015 RESPONSE TO PLAINTIFF'S VERIFIED MOTION FOR Response 9:52:16 AM CONTINUANCE (ATTACHED WITH AN ORDER DENYING ORDER FOR MOTION FOR CONTINUANCE). EjG

2/27/2015 Response *IMG* RESPONSE TO MOTION TO COMPEL ARBITRATION. (EjG) 9:50:58 AM

2/25/2015 *IMG* PLAINITTF'S RESPONSE TO DEFENDANT'S TRADITIONAL Response 3:01:22 PM MOTION FOR SUMMARY JUDGMENT. (8G) *IMG* PLAINTIFF'S VERIFIED MOTION FOR CONTINUANCE REGARDING DEFENDANT'S TRADITIONAL MOTION FOR 2/24/2015 Filing Papers SUMMARY jUDGMENT.(SL) ORDER ... REC'D AND SENT TO 4:36:24 PM COURT COORDINATOR. (SL) ** ORDER RETURN BACK FROM COURT UNSIGNED 3/10/15.

2/13/2015 *IMG* PLAINTIFF'S MOTION FOR A PARTIAL SUMMARY Filing Papers 3:13:51 PM JUDGMENT (NO FIAT OR ORDER ATTACHED). EjG Court date/time: 3/05/2015 9:00 Hearing Type: 142 1/26/2015 Court Case Motsumjudt Assignment of court date/time. Status entered as 2:03:45 PM Assignment Open

1/22/2015 Notices of *IMG* NOTICE OF HEARING. (SL) 2:39:09 PM Hearing Motion for 1/22/2015 *IMG* AMERICAN GENERAL LIFE INSURANCE COMPANY'S Summary • 2:32:31 PM TRADITIONAL MOTION FOR SUMMARY JUDGMENT. (SL) judgment 10/3/2014 *img* NOTICE REGARDING PRE-TRIAL GUIDELINE ORDER Filing Papers 4:20:48 PM (E-FILED BY ATTORNEY JASON A. RICHARDSON). EjG

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IActivity Description ·-CASECA[[E5:TtJ5cTsEcKfEpALoMO-PRESf5fNC-:CQuR:'f--· REPORTER ANA ALCANTAR. ATTORNEY ARMANDO TREVINO PRESENT. ATTORNEY JASON A. RICHARDSON PRESENT. HEARING ON STATUS. COURT ORDERED ATTORNEYS TO SUBMITT A PRE-TRIAL GUIDELINE ORDER TO COURT COORDINATOR FOR FURTHER PROCESS. (EjG) *IMG* NOTICE OF HEARING (STATUS/ADDITIONAL DISCOVERY) 9/19/2014 Notices of SET FOR 10/2/14 @ 9:00AM_ FAXED AND MAILED TO ATTY. 9:53:28 AM Hearing ARMANDO TREVINO AND ATTY. JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (SL)

9/15/2014 Court Case Court date/time: 10/02/20149:00 Hearing Type: 48 Status 4:26:48 PM Assignment Assignment of court date/time. Status entered as Open

9/15/2014 Court Case Court date/time: 9/15/2014 9:00 Hearing Type: 48 Status 4:26:09 PM Assignment Status changed from Open to Post/ CASE CALLED. JUDGE BECKIE PALOMO PRESIDING_ COURT 9/15/2014 Notes REPORTER ANA ALCANTAR. NO ONE PRESENT. STATUS 4:23:16 PM HEARING RESET TO 10/2/14 @ 9:00AM. (SL) *IMG* NOTICE OF HEARING (STATUS-ADDITIONAL 7/2/2014 Notices of DISCOVERY) SET ON 9/15/14 @ 9:00AM FAXED AND MAILED 10:40:10 AM Hearing TO ATTORNEY ARMANDO TREVINO AND ATTORNEY JASON A. RICHARDSON FROM CIVIL COURT COORDINATOR. (EjG)

7/2/2014 Court Case Court date/time: 9/15/2014 9:00 Hearing Type: 48 Status 10:11:44 AM Assignment Assignment of court date/time. Status entered as Open

CASE CALLED. JUDGE BECKIE PALOMO PRESIDING_ COURT REPORTER ANA ALCANTAR. ATTY_ ARMANDO TREVINO PRESENT FOR RUFINA REYES YANEZ. ATTY_ JASON 6/30/2014 RICHARDSON PRESENT FOR AMERICAN GENERAL LIFE Notes 2:23:37 PM INSURANCE. L) HEARING ON PLFT. SPECIAL EXECEPTIONS, 2_) DFTS_ MOTION TO DISMISS PURSUANT TO RULE 91A, ATTYS. REQUESTED A RESET PENDING ADDl. DISCOVERY_ CASE RESET TO 9/15/14 @ 9:00AM. (SL) *IMG* AMERICAN GENERAL LIFE INSURANCE COMPANY'S 6/24/2014 RESPONSE TO PLAINTIFF'S SPECIAL EXCEPTION (ATTACHED Response 3:48:57 PM WITH EXHIBIT 1). EjG

16/20/2014 *IMG* AMERICAN GENERAL LIFE INSURANCE COMPANY'S Filing Papers 3:02:24 PM NOTICE OF WITHDRAWAL OF MOTION. (EjG) *IMG* NOTICE OF HEARING (PLTF. SPECIAL EXCEPTIONS) SET 6/20/2014 Notices of FOR 6/30/14 @ 1:30PM_ FAXED AND MAILED TO ATTY_ JASON 9:50:58 AM Hearing RICHARDSON, AND MAILED ONLY TO ARMANDO TREVINO FROM . CIVIL , COURT COORDINATOR. (SL) Court date/time: 6/30/2014 13:30 Hearing Type: 65 6/19/2014 Court Case Spcl/excpt Assignment of court date/time. Status entered as 3:23:48 PM Assignment Open

6/18/2014 4:49:31 PM Filing Papers *IMG* REPLY TO AMERICAN GENERAL LIFE INSURANCE COMPANY'S MOTION TO DISMISS PURSUANT TO RULE 91a_ (sl) I 6/18/2014 Filing Papers *IMG* SPECIAL EXCEPTIONS TO DEFENDANT'S ORIGINAL 14:45:33 PM ANSWER_ (SL) (FILED BY ATTY. ARMANDO TREVINO) **

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IActivity Date Type Description ..oATIACHEBWITfn;rOl'rCEOF-HEARINC"ANIY6RrfER::.REC'O AND SENT TO COURT COORDINATOR. (SL) *IMG* NOTICE OF HEARING (DEFENDANT AMERICAN GENERAL LIFE INSURANCE COMPANY'S MOTION TO DISMISS PURSUANT 6/12/2014 Notices of TO RULE 91A) SET ON 6/30/14 @ 1:30PM FAXED AND MAILED 13:21:44 PM Hearing TO ATTORNEY JASON A. RICHARDSON AND MAILED ONLY TO ATTORNEY ARMANDO TREVINO FROM CIVIL COURT COORDINATOR. (J;JG)

6/12/2014 Court Case Court date/time: 6/30/2014 l3:30 Hearing Type: 37 Motions 9:41:30 AM Assignment Assignment of court date/time. Status entered as Open 6/10/2014 Filing Papers 'IMG* NOTICE OF SERVICE OF REQUESTS FOR DISCOVERY. (SL) 11:27:l3 AM *IMG* PRE-TRIAL GUIDELINE ORDER UURY) SIGNED 6/2/2014. Pre-Trial 6/4/2014 (DL) (P/T 5/4/15 @ 9:00AM &J/S 5/18/15 @ 8:00AM) FAXED Guideline 4:44:26 PM AND MAILED TO ATTY. ARMANDO TREVINO, AND ATTY. Order JASON RICHARDSON FROM CIVIL COURT COORDINATOR. (SL) 6/3/2014 Court Case Court date/time: 5/18/2015 8:00 Hearing Type: 4 Jury Trial 9:56:48 AM Assignment Assignment of court date/time. Status entered as Open 6/3/2014 Court Case Court date/time: 5/04/2015 9:00 Hearing Type: 2 Pre-Trial 9:56:34 AM Assignment Assignment of court date/time. Status entered as Open *IMG* LETTER FROM EDISON, MCDOWELL, AND 5/29/2014 Filing Papers HETHERINGTON LLP TO CIVIL COURT COORDINATOR MAYA 10:58:32 AM MARTINEZ DATED 5/23/14. (EJG) 5/28/2014 *IMG* PRE-TRIAL GUIDELINE ORDER REC'D AND PLACED IN Filing Papers 1:53:23 PM COURT'S FILE FOR HEARING. (EJG) *IMG* AMERICAN GENERAL LIFE INSURANCE COMPANY'S 5/23/2014 Motion to MOTION TO DISMISS PURSUANT TO RULE 91a. (ATTACHED 3:25:10 PM Dismiss WITH NOTICE OF HEARING AND ORDER) ... REC'D AND SENT TO COURT COORDINATOR. (SL) *IMG* AMERCIAN GENERAL LIFE INSURANCE COMPANY'S 4/28/2014 Answer ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES. (SL) (FILED 10:26:33 AM BY ATTY. JASON RICHARDSON) SL

4/15/2014 *IMG* CITATION RETURN EXECUTED AS TO AMERICAN Returns 7:57:03 AM GENERAL LIFE INSURANCE COMPANY. (DOS 4/10/14) SL

3/24/2014 *IMG* REQUEST OF COPY FROM EDISON, MCDOWELL & Filing Papers 4:47:15 PM HETHERINGTON LLP. (SL) *IMG* (2) CITATIONS ISSUED TO AMERICAN GENERAL LIFE 3/19/2014 INSURANCE COMPANY AND PLACED IN PRIVATE SERVER BOX. Issuance 4:25:10 PM (LD 3/19/2014 CALENDAR CALL FAXED TO ATTORNEY ARMANDO TREVINO. Notes 4:23:56 PM (LT)

3/19/2014 Court Case Court date/time: 6/02/2014 l3:30 Hearing Type: 17 Clndr 4:23:54 PM Assignment Call Assignment of court date/time. Status entered as Open

3/18/2014 Case Status Case Status entered as ACTV. Case Status ACTV: Active For 15:03:42 PM AMERICAN GENERAL LIFE INSURANCE COMPANY

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2014CVF000504 D3 : RufinaReyes Yanez vs. American Gener... Page 8 of8

IActivity I

For more information, please contact the Webb County District Clerks (956-523-4268) or County Clerks (956-523-4266) office.

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EXHIBITB

Filed 7/10/201512:36:07 PM Esther Degollado District Clerk Webb District Esther Jo Garza CAUSE NO. 2014CVF000504-D3 2014CVF000504 D3

RUFINA REYES YANEZ, § IN THE DISTRICT COURT Plaintiff

VS. § 341" JUDICIAL DISTRICT

AMERICAN GENERAL LIFE INSURANCE COMPANY, Defendant § WEBB COUNTY, TEXAS

MOTION FOR LEAVE TO FILE RELEVANT DOCUMENTS AND FOR JUDICIAL NOTICE

TO THE HONORABLE JUDGE OF SAID COURT:

1. Comes Now Plaintiff RUFINA REYES YANEZ, and moves the Court for leave to file and to take judicial notice of the following relevant documents:

a. Exhibit 1, Plaintiffs' Original Petition on Cause # 2002CVF000182-Dl; Rufina Reyes de Yanez, Individually and as Representative of the Estate of Julio Arturo Yanez, Julio Arturo Yanez-Reyes, Maria Isabel Yanez-Reyes, and Ricardo Yanez-Reyes, PlaintiffS v. Old Line Lifo Insurance Company ofNorth America, An American General Company, Harry Beltran and Susano Castillo, Jr., d/b/a B &C Financial Planning, Defrndants; In the 49th Judicial District Court, Webb County, Texas.

b. Exhibit 2, proof of service on Old Line Life Insurance Company of North America, An American General Company, et al;

c. Exhibit 3, copy of Defendant Old Line Life Insurance Company of North .America's Original Answer; and

d. Exhibit 4, copy of Docket Sheet of Webb County Judicial System.

Page II

2. These documents are relevant because they prove that American General Life Insurance Company as far back as 2002 that Julio A. Yanez had died and the Court is required to take judicial notice of the documents.

3. Prayer. Premises considered plaintiff asks the court for leave to file Exhibits 1, 2, 3, 4, for the court to take judicial notice of the exhibits and to grant plaintiffs motion for a new trial.

o TREVINO State Bar No. 20211100 1519 Washington St., Suite One Laredo, Texas 78040 Tel: (956) 726-1638 Email: annandotrevinola\vrl))gmail.com Attorney for Plaintiff RUFINA REYES YANEZ

CERTIFICATE OF SERVICE

I hereby certify that on the 10m day of July, 2015, a true and correct copy of the above and foregoing was served by electronic mail to jason.richardson@emhllp.com, JASON A.

RICHARDSON, EDISON, McDOWELL & HETHERINGTON LLP, 3200 Southwest Freeway, ~ / Suite 2100, Houston, Texas 77027. / /.. -r- ,

--~~;z<i~~..-?:-_ . ARMANDO TREVINO

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EXHIBIT 1

I ! f

.. _.i ORIGINAL CAUSE NO. d()f)JJ~ FctJ@B~.Mn~~;\;IS RUFINA REYES DE YANEZ, § IN T~~J;~'~.· \Q~M{j4 j

INDIVIDUALLY AND AS REPRESENTATIVE § ,~ .. n' :C" / OF THE ESTATE OF JULIO ARTURO § r ,'-L~ -'i ,," YANEZ, JULIO ARTURO YANEZ~REYES, § Ir: ,. U lf u'.:t\1 '(. t~""/"'i · MARIA ISABEL YANEZ-REYES, AND § 0'./' ~._3\iT'I RICARDO YANEZ-REYES " §'" § I

Plaintiffs, § V. § § JUDICIAL DISTRICT COURT § OLD LINE LIFE INSURANCE COMPANY § OF NORTH AMERICA, AN AMERICAN § GENERAL COMPANY, HARRY BELTRAN § AND SUSANO CASTILLO, JR. D/BIA § B&C FINANCIAL PLANNING . § § Defendants. § WEBB COUNTY, TEXAS

PLAINTIFFS' ORIGINAL PETITION

TO THE HONORABLE COURT:

NOW COME RUFINA REYES DE YANEZ, INDIVIDUALLY AND AS

REPRESENTATIVE OF THE ESTATE OF JULIO ARTURO YANEZ, JULIO ARTURO

- - YANEZ-REYES, MARIA ISABEL YANEZ-REYES and RICARDO YANEZ-REVES, -' plaintiffs. and file this their Original Petition complaining of OLD LINE LIFE

INSURANCE COMPANY OF NORTH AMERICA, AN AMERICAN GENERAL

COMPANY ("Old Line"), HARRY BELTRAN ("Beltran") and SUSANO CASTILLO,

JR. D/B/A B&C FINANCIAL PLANNING ("B&C"), defendants, and for cause of action

show as follows:

A. Discovery Control Plan

1. Plaintiffs intend to conduct discovery under Level 2 of Texas Rule of Civil

Procedure 190.

B. PARTIES AND VENUE

2. Rufina Reyes de Yanez, Julio Arturo Yanez-Reyes, Maria Isabel Yanez-Reyes and Ricardo Yanez-Reyes are the beneficiaries of a life insurance pJIiCY issued

by Defendant Old Line. They reside in Laredo, Webb County, Texas. I Julio Arturo

Yanez, deceased, was the owner of the life insurance policy.

3. Defendant Old Line is a life insurance company incorporated in the State of Wisconsin, and licensed to do insurance business in the State of Texal. Old line may be served with process by certified mail receipt return requested by serving its registered attorney for service, Mr. Dennis Monroe, at 12750 Merit Drive Suite 1424,

Dallas, Texas 75251, pursuant to Ins. Code art. 1.36, § 4(a}. I 4. Defendant B&C is a resident of Laredo, Webb County, Texas, ~nd may be served with process at his principal place of business at 5918 MCPhersJn, Suite 6,

Laredo, Texas 78041, by private process service.

5. Defendant Beltran is a resident of Laredo, Webb County, Texas, and may be served with process at his place of business at 5918 McPherson, suit16, Laredo, Texas 78041, by private process service.

6. Venue is proper in Webb County, Texas pursuant to Tex. 8iv. Prac. & Rem. Code §§ 15.002, 15.032, 15.035. Venue is also proper pursuant Ito Tex. Civ. Prac. & Rem. Code § 15.005.

C.FACTS

7. On or about JanuarY 25, 2000, Julio Arturo Yanez applied with Security

Connecticut Insurance Company for a term life policy of insurance throuJh his agent, I Beltran, at the time an independent agent. Term life Policy No. 2398027M for

$500,000 was issued on March 27,2000.

8. • • Subsequently, Julio Arturo Yanez advised Beltran that he wanted to

increase his policy limits to $1,000,000.00. Beltran, who at the time was working for B&C, recommended to Julio Arturo Yanez that he apply fora term life policy with Old Line. On or about June 2, 2000, Julio Arturo Yanez did so. The original apJlication was

, for coverage in the amount of $500,000, and was executed by him on June 12000. . 9. On or about June 15, 2000, Julio Arturo Yane.: was submitted to a medical

exam by an agent of Old Line,· Mr, Dunn. On that same day, he answerJd questions relating to his medical condition, After testing was performed, Old Line agrJed to insure Julio Arturo Yanez for $500,000.

10. Pursuant to recommendations made by his agent, however, Julio Arturo Yanez decided to consolidate the Security Connecticut policy with the Old line policy.

Old Line was advised of this request, and in turn it requested that Julio Arturo Yane.: , submit to further testing, mainly an additional blood pressure checks and EKG.

11. On July 25,2000, Julio Arturo Yatiez was admitted to Doctorb Hospital in I laredo, Texas with a diagnosis of "pulmonary edema." He remained in the hospital until

July 29, 2000, He was discharged with diagnosis of obstructive IU~g defect in pulmonary function and hypertension (high blood pressure).

12. On or about August 17, 2000, Julio Arturo Yatiez completed blood I pressure rechecks performed by Old line's agents, Mr, and Mrs, Dunn, At no time did

Mr. or Mrs, Dunn ask Julio Arturo Yanez if his condition had changed si1ce June 15,

2000, which is the day in which they first checked him, I 13. Based on the results of these lests, Mr, Yatiez's application for the

$1,000,000.00 life policy was approved on September 5, 2000. This policy replaced the

• • • • Security Connecticut policy and consolidated the previously approved Old Line policy

for $500,000. Given, however, that Julio Arturo Yanez was a high risk because he

smoked and because he had problems with blood pressure, the policy pre~iums were classified a Class VI premiums. Class VI premiums are based on the insur~d qualifying

for standard mortality risk. These Class VI premiums were higher than thb combined

premiums of the Security Connecticut policy and of the $500,000 policy t~at Old Line had previously agreed to issue.

14. On or about September 28, 2000, Beltran was asked by Old Line to

forward only the front page of the application of insurance with changes Jertaining to

the amount of the policy (or $1,000,000.00), and with a notation that it wa~ to replace the Security Connecticut policy. Beltran made the corresponding ChangeJ to the first

page to reflect the increase in Ii~its and information on the policy to be rlplaced. In addition, Beltran re-dated the application as if he had witnessed Julio A~uro Yanez I execute the same on 9128/00. Beltran then forwarded to Old Line only the first page of

the application.

15. On October 13, 2000, Policy No. MM0112648 was issued bYj Old Line to

Julio Arturo Yanez ("The Policy"). Attached as Exhibit "A" is a true and co~rect copy of

this policy, which policy is incorporated herein for all purposes thereof.

16. Relying on the issuance of Policy No. MM0112648, Julio Arturo Yanez

allowed the Security Connecticut policy to lapse.

17. Julio Arturo Yanez died on May 29, 2001, as a result of cardiac arrest.

18. . A claim for policy proceeds made by the b enefi" l . IClafies was d eme. d Old

Line conducted an investigation and determined there was no coverage on the grounds

• • • that when Julio Arturo Yanez was re-checked on August 17, 2000 by Mr. orl Mrs. Dunn,

he answered "no" to the question of whether he had ever "been treated for, or had any known indication of elevated blood pressure.' As an additional reason for. denial, Old Line relied on the language contained in the application stating that "a contract of insurance shall take effect only if a pOlicy is issued on the application and the first premium is paid in full during the lifetime of the proposed insured and while there is not change in the insurability and health of all such persons from that stated in this application ...

D. BENEFICIARIES' SUIT FOR POLICY BENEFITS AGAINST OLD LINE

19. The plaintiffs are the beneficiaries under the terms of The pdlicy, and as I such are entitled to receive the benefits payable by Old Line as a result of the death of I Julio Arturo Yanez.

20. At the time of the death of Julio Arturo Yanez, The Policy attached as I Exhibit "A" was in full force and effect. All conditions precedent to Old Line's liability I under The Policy have occurred or have been performed. Nonetheless, Gld Line has

refused and still refuses to pay plaintiffs the benefits due under The Policy.

21. The Policy became payable by its terms on May 29, 2001. Plaintiffs are

entitled to recover $1,000,000.00.00, the benefits payable under The Policy, together I with interest on this sum as provided by law.

22. Plaintiffs are also entitled to recover statutory penalties of 18, percent per year of the amount payable under the policy, because Old line has not Pjid plaintiffs'

claim even though more than 60 days has elapsed since Old Line received all required

• • • and requested items, statements, and fOnTIS from plaintiffs. Plaintiffs rely on Tex. Ins.

Code Art. 21.55 for recovery under this paragraph.

E. PLAINTIFFS' CONTRACTUAL CLAIMS AGAINST OLD LINE

23. All conditions ! precedent to Old Line's liability under The Policy have

occurred or have been periormed. Nonetheless, Old Line has refused and still refuses to pay plaintiffs the benefits due under The Policy.

24. Old Line has not periormed its contractual obligations. Specifically, it has failed to pay the benefits under The Policy as it agreed to do so. AccordinJIY, Old Line has breached its obligations under the contract of insurance.

25. Plaintiffs now sue Old Line for breach of contract and affirmatively plead that they seek monetary relief aggregating $1,000,000.00.00, exclubing costs, prejudgment interest, and attorney fees.

F. PLAINTIFFS' SUIT FOR DETRIMENTAL RELIANCE, FRAUDULENT INDUCEMENT, AND ESTOPPEL AGAINST OLD LINE

26. In the altemative, plaintiffs will show that in reliance on the defendant's promised performance under The Policy described above, Julio Arturo Yanez allowed the Security Connecticut policy to lapse. The opportunity for coverage undkr that policy was destroyed by the defendant's representation that Julio Arturo Yanez l s insurable despite the insurability risks. Old Line's delay in informing Plaintiffs of thJ intention to rescind resulted in detrimental reliance to Julio Arturo Yanez, and sUblequentlY to plaintiffs, making rescission of The Policy inequitable. Old Line's latb rescIssion

produced an injury and/or unjust consequences to Plaintiffs, to wit: the 10sJ of coverage I under the Security Connecticut policy, for which Plaintiffs now sue in the alternative.

I

, 27. • • Plaintiffs will show that on or about the lime Julio Arturo Yanez requested I that the Security Connecticut policy and the approved $500,000 policy Old line agreed

to issue, Old line knew or should have known that Julio Arturo Yanez sJffered from

high blood pressure as evidenced by its agreement to issue a risk policy for tobacco

rates and blood pressure. Accordingly, it would be unjust to enforce any provisions

contained in The Policy that would allow Old Line to rescind its Obligatio~s under the same. Julio Arturo Yanez, and subsequently the Plaintiffs, reasonably and foreseeably

relied on the promise of Old line to provide insurance to their detriment, and injustice

could only be avoided by enforcing The Policy.

28. In the alternative, Plaintiffs will show that Old Line fraudulently "induced" I Julio Arturo Yanez to consolidate his policies into one life insurance policy without giving

him sufficient information that would enable him to make an informed colsent to the

terms of The Poilcy. I Old Line materially represented that Julio Arturo Yanez could

consolidate his policies, at a higher premium, without foregoing cove~ge. Such material representation of fact was false, was either known to be false w~en made or

was asserted without knowledge of the truth, and· was intended to be alted on, and

Julio Arturo Yanez relied on the same, and the representation caused injury to Plaintiffs.

29. In the alternative, Plaintiffs sue Old Line for detrimental reliance, . I fraudulent inducement, and estoppel and affirmatively plead that they seek monetary

relief for their damages in an amount of at least $1,000,000.00, eXciLding costs,

prejudgment interests, and attorney fees.

• • • G. BENEFICIARIES' SUIT FOR VIOLATIONS OF THE TEXAS DECEPTIVE TRADE PRACTICES ACT AGAINST OLD LINE I 30. At the time of the tr~nsactjon described above, defendants represented,

among other things, that The Policy would provide benefits in the event that Julio Arturo

Yanez died, that Julio Arturo Yanez was insurable even though he was a high risk, and I that Julio Arturo Yanez could let the Security Connecticut policy Ilapse. The

representations by the defendants were false, misleading, and deceptive. Tie foregoing representations violate Section 17.46(b) of the Deceptive Trade Practices--Consumer Protection Act in that they constitute representations that The Policy had chlracteristics, or benefits that it did not have. Julio Arturo Yanez relied on these represlntations to plaintiffs' detriment.

31. The denial of coverage and the manner in which Old Line (directly and/or I through its agent) handled the situation described above constitutes a violation of the

Deceptive Trade Practices - CQnsumer Protection Act ("DTPA") and the Texas Insurance Code. Specifically, Old Line engaged in an unconscionable action or course of action. In addition, Old Line engaged in the following unfair methods of competition, unfair and deceptive acts or practices, and/or unfair settlement practices:

(1 ) Making ... or causing to be made ... any ... statement misrepresenting the terms of any policy issued or to be issued the .benefits orl advantages promised thereby ... or makIng any mIsrepresentation to any policy holder insured in any company for the purpose of inducing or tending to. induce

Tex. Ins. Code, Section 4(1); . I. such policyholder to lapse, forfeit, or surrender his insurance; Art. 21.21

(2) Making, publishing. disseminating, circulatIng or placing before the public causing, directly or indirectly, to be made, published, d,isseminated, circulated placed before the public... in any... way... [a] statement containing any assertion, representation, or statement with r~spect to the business of insurance or with respect to any person in the dmduct of his

• • • I insurance business, which is untrue, deceptive, or misleading; Art. 21.21 Tex. Ins. Code, Section 4(2);

(3) With respect to a claim by an insured or beneficiary: (i) misrepresenting to a claimant a material fact or policy provision relating to toverage at issue; and (ii) failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim with respect to which the insurer's I liability has become reasonably clear; ... [and{ (iv) failing to provide promptly to a policyholder a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for the insurer's denial of a

I claim or for the offer of a compromise settlement of a c1airrl; Art. 21.21 Tex. Ins. Code, Section 4(10);

(4) Misrepresenting an insurance policy by: (a) making an untrue statement of material fact; (b) failing to state a material fact that is neceSSary to make other statements made not misleading, considering the CirCumstances under which the statements were made; (c) making a stateriJent in such manner as to mislead a reasonably prudent person to a falsJ conclusion of a material fact; ... or (e) failing to disclose any matter requir~d by law to be disclosed, including failure to make disclose in accoh:iance with another provision of this code. Art. 21.21 Tex. Ins. Code, Sectibn 4(11);

(5) · Causmg confusron · . or mlsun I d erslan. d·Ing as to t he source, sponsors h·IP, approval, or certification of goods or services; Tex. Bus. & Cbmm. Code, Section 17.46(2); I (6) Representing that...services have approval, characteristiCS, ... uses,

I benefits, or quantities which they do not have; Tex. Bus. & Cbmm. Code, Section 17.46(5);

(7) Representing that any agreement confers or involves rights, remedies, or obligations which it does not have or involve; Tex. Bus. & Cbmm. Code, Section 17.46(12);

(8) Misrepresenting the authority of a salesman, representative or agent to

Code, Sectio~ 17.46(14);. . I. negotiate the final terms of a consumer transaction; Tex. Bus. & Comm.

(9) Misrepresentmg that The Policy would prOVide coverage and allOWing Julio Arturo Yanez to let the Security Connecticut Policy lapse;

(10) Failing to attempt in good faith to effectuate a prompt, fair, abd equitable

I settlement of the plaintiffs' claim once the defendant's liability became reasonably clear;

(11) • • Refusing to pay the claim without first conducting a reasonable investigation of the matter.

(12) Delaying payment under The Policy issued on the basis that Julio Arturo

I Yanez answered "no" to a question that was not interposed td him on the day claimed by defendant (August 17, 2001).

(13) Failure to properly and thoroughly investigate the claim for benefits.

The failure to disclose information concerning services which was klown at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered

had the information been disclosed; Tex. Bus. & Comm. Code, Section 17.46(23). I 32. In the sale of The Policy, Old Line defendant enga6ed in an

unconscionable action or course of action by issuing The Policy when it knei that it was . I a high risk policy, by allowing Julio Arturo Yanez to let the Security ConneCticut Policy

lapse, and by denying benefits under The Policy when it knew that Julio ~rturo Yanez I was a high risk. By such conduct, Old Line took advantage of the lack Of, knowledge,

ability, experience or capacity of JuliO Arturo Yanez, to plaintiffs' detriment, to a grossly unfair degree.

33. Old Line's conduct as described above was a producing cause of

plaintiffS' economic damages. As a result, plaintiffs sustained damages i~ an amount equal to The Policy benefits of $1,000,000.00, excluding costs, prejUdgJent interest,

and attorney fees.

34. The conduct of Old· Line as described in this petition wai committed knowingly. Defendant was actually aware, at the time of the conduct, of the falsity, deception, and unfairness of the conduct about which plaintiffs complain. As a direct result of defendant's knowing misconduct, plaintiffs suffered mental anguish. In

particular, plaintiffs • • suffered intense feelings of humiliation and belittlement, an

abnormal sense of inferiority and accompanying panic attacks, and loss I sleep and o~

appetite, all of which commenced on the date that plaintiffs learned of the defendant's knowing misconduct and all of which have continued through this date. Accordingly, defendant is liable to plaintiffs for mental anguish damages suffered by Jlaintiffs and additional damages of up to three times the amount of economic damages is permitted by the Deceptive Trade Practices--Consumer Protection Act

35. The conduct of the defendant as described herein was committed

intentionally. That is, l defendant had actual awareness of the falsity, deception, or

unfairness of the act or practice, coupled with the speCific intent that Julio lrturo Yanez

act in detrimental reliance on the falsity or deception or in detrimental ignJance of the I unfairness. As a result of defendant's intentional misconduct, plaintiffs suffered mental l anguish. Accordingly, plaintiffs are enlitled to damages for mental angUiSh suffered by

plaintiffs and additional damages of up to three limes plaintiffs' economic dkmages and damages for mental anguish as provided by the Deceptive Trade practiceJ--consumer Protection Act.

36. Plaintiffs gave written notice to Old Line advising of plaintiffs' specific

complaints and the amount of economic damages and damages for me~tal anguish, and expenses, including attorney's fees, reasonably incurred by plaintiffs in asserting

the claim against defendant. A tr\je and correct copy of the written notice is attached I as Exh ibit B and incorporated, by reference the same as if fully copied and set forth at

length.

• • • H. BENEFICIARIES' SUIT FOR VIOLATIONS OF THE TEXAS INSURANCE CODE AGAINST OLD LINE I 37. After having received notice of the plaintiffs' losses covered b Y The Policy, I all as set out in the preceding paragraphs of this petition, Old Line engagei:l in several

unfair settlement practices, as enumerated and declared unfair or deceptile in Article

21.21, § 4(10) of the Texas Insurance Code [and Section 17A6(b) of the Texas I Business and Commerce Codel, including but not limited to the following:

(1 ) Making ... or causing to be made ... any ... statement misrepresenting the term~ of any policy issued or to b~ issued the benefits or ladvantages promised thereby ...or making any misrepresentation to any policy holder insured in any company for the purpose of inducing or tendi~g to induce

I such policyholder to lapse, forfeit, or surrender his insurancJ; Art. 21.21 Tex. Ins. Code, Section 4(1);

(2) Making, publishing, disseminating, Circulating or plaCing before the publiC causing, directly or indirectly, to be made, published, di~seminated, circulated placed before the public... in any... way... [aj statement containing any assertion, representation, or statement with respect to the business of insurance or with respect to any person in the cdnduct of his

I insurance business, which is untrue, deceptive, or misleading; Art. 21.21 Tex. Ins. Code, Section 4(2);

(3) With respect to a claim by an insured or beneficiary: (i) misrepresenting to a claimant a material fact or policy provision relating to cover~ge at issue; and (ii) failing to attempt in good faith to effectuate a prom'pt, fair, and equitable settlement of a claim with respect to which the insurer's liability has become reasonably c1ear; ... [and[ (iv) failing to provide p~omptlY to a policyholder a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for the insurer's denial of a claim or for the

I offer of a compromise settlement of a claim; Art. 21.21 Tex'. Ins. Code, Section 4(10);

(4) Misrepresenting an insurance policy by: (a) making an untrue statement of material fact; (b) failing to state a material fact that is neces~ary to make other statements made not misleading, considering the circumstances under which the statements were made; (c) making a statement in such manner as to mislead a reasonably prudent person to a fals~ conclusion of a material fact; ... or (e) failing to disclose any matter requirkd by law to be disclosed,including failure to make disclose in acc~rdance with another provision of this code. Art. 21.21 Tex. Ins. Code, Section 4(11);

• • • (5) Causing confusion or misunderstanding as to the source, ~ponsorship, approval, or certification of goods or services; Tex. Bus. & Comm. Code, Section 17.46(2); I (6) Representing that ... services have approval, characteristics, ... uses,

I benefits, or quantities which they do not have; Tex. Bus. & Chmm. Code, Section 17.46(5);

(7) Representing that any agreement confers or involves rights, remedies, or obligations which it does not have or involve; Tex. Bus. & Chmm. Code, Section 17.46(12);

(8) Misrepresenting the authority of a salesman, representative or agent to

I negotiate the final terms of a consumer transaction; Tex. Bus. & Comm. Code, Section 17.46(14);

(9) Misrepresenting that The Policy would provide coverage and allowing Julio Arturo Yanez to let the Security Connecticut Policy lapse;1

(10) Failing to attempt in good faith to effectUate a prompt, fair, and equitable settlement of the plaintiffs' claim once the defendant's liability became reasonably clear;

(11 ) Refusing to pay the claim without first conducting a reasonable investigation of the matter;

(12) Failure to properly and thoroughly investigate the claim for beneftts;

(13) Delaying payment under The Policy issued on the basis thatl Julio Arturo

I Yanez answered "no· to a question that was not interposed to him on the day claimed by defendant (August 17, 2001).

38. The plaintiffs will show that these acts and omissions on Old Lines' part

were done knowingly, that is with an actual awareness of the falsity, u~fairness, or deception of the conduct described. Consequently, the plaintiffs request thlt the trier of I fact award the plaintiffs additional damages of up to three times the sum of actual

damages SUffered.

• • • I. PLAINTIFFS' SUIT FOR VIOLATION OF THE DUTY OF GOOD FAITH AND FAIR DEALING AGAINST OLD LINE

39. From and after the time the plaintiffs' claim was presented to Gld Line, the I defendant's liability to pay the claim in accordance with the terms of The Policy attached

as Exhibit A was reasonably clear. Despite there being no basis whatsoeve! on which a , I reasonable insurance company would have relied to deny payment of the plaintiffs'

claim, the defendant refused to accept the claim and pay the plaintiffs al the policy

required.

40. At that time, the defendant knew or should have known by the exercise of , I reasonable diligence that its liability was reasonably clear. In this regard, the plaintiffs

will show that the defendant fai;ed to conduct a reasonable, proper investiJation of the

claim and refused to rely on the true facts, resorting instead to prodJcing faulty,

incomplete, and biased reasons as subterfuges to avoid paying a validclai~. 41. Consequently, the defendant breached its duty to deal fairly ~nd in good I faith with the plaintiffs, who as beneficiaries under The Policy are entitled to the I proceeds of the same. The defendant's breach was a proximate cause of the losses,

expenses, and damages suffered by the plaintiff as more specifically deSCriJed below.

42. After the plaintiffs' claim was presented to the defendant, thle defendant

I notified the plaintiffs that the policy was void and of no effect, the same as if it had nev~r been issued, because Julio Arturo Yanez allegedly had misrepresented CeraIn facts In

applying for the coverage. However, the defendant knew or should have known that It

had no basis in law or in fact upon which a reasonable insurer would hte relied to

14 -------'1-_______ ,.

rescind • • the policy or assert a misrepresentation defense to its obligations.

Consequently, the defendanfs attempt to rescind the coverage and avoid payment of

the plaintiffs' claim was a breach of its duty to deal fairly and in good faith with the 1 plaintiffs and a proximate cause of the losses, expenses, and damages suffered by the

plaintiffs as more specifically described below.

43. The breach of duty by the defendant was aggravated by the kind of malice j or fraud and reckless disregard for which the law allows the imposition of exemplary

damages. The defendant's conduct comprising the breach of duty was specifically

intended to cause substantial injury to the plaintiffs and such conduct comprising the 1 breach involved an extreme degree of risk of potential harm to the plaintiffs or others.

Despite the defendant's being actually and subjectively aware of the risk itolved, the

defendant proceeded with conscious indifference to the rights, safety, and Jelfare of the

plaintiffs and others.

44. The defendant's conduct comprising the breach of duty included the

making of a material representation that was false and either known by the 1efendant to

be false or made as a positive assertion with reckless disregard for th! truth. The

defendant intended that the representation would be relied upon by Julio A~uro Yanez, and later the plaintiffs and, in fact, these individuals did rely on the represtntation and

suffered harm as a result. Plaintiffs, therefore, seek exemplary damages in an amount

to be assessed by the trier of fac!.

15 ._-.---

• J. PLAINTIFFS' SUIT FOR NEGLIGENCE AGAINST OLD LINE • 45. Old Line engaged in various acts and/or omissions which constitute I negligence and that were the direct and proximate cause of the injuries aAd damages

sustained by plaintiffs. These acts and/or omissions of negligence include:

1. Failing to fully inform Julio Arturo Yanez of the particulars of the "insurability" prOVision under The Policy and the effects that a denial of coverage would have if the Security Connecticut policy lapsed;

2. Encouraging Julio Arturo Yanez to consolidate the Security ,Connecticut (for $500,000) and the Old line promised coverage (for $500,000) when Julio Arturo Yanez was already "insurable" under those policil~s under the representation that he would be insurable under a consolidat~d policy as long as he had passed the medical exam;

3. Failing to require that a complete application be filled when JuliO Arturo Yanez decided to consolidate the Security Connecticut (for $500,000) and the Old line promised coverage (for $500,000) into one POlic~. Instead, it directed Beltran to change some of the information on the first page;

4. Failing to deny coverage the. first time that Julio Arturo YaiiJz, failed the physical exam,and· insisting on subsequent exams so that they could consolidate with their policy a life insurance policy that issued by another carrier.

46. Plaintiffs sue for injuries proXimately caused by Old line's negligence. These damages include, but are not limited to, The Policy proceeds or the amount of

the Security Connecticut Policy ($500,000) plus the promised coverage under the I original application with Old Line ($500,000), mental pain and suffering, and I . til .. prejudgment and post-judgment interest. These damages exceed t e minimum

jurisdictional limits of this Court and are of at least $1,000,000.00, exclusive of interest.

• • • Connecticut policy if he did not qualify for $1 million coverage under The Policy. Beltran

failed to do so, and instead he encouraged Julio Arturo Yanez to consolibate the $1 million coverage in one policy.

48. As Julio Arturo Yanez' insurance agent, Beltran likewise had the duty to make sure that Julio Arturo Yanez understood that by requesting an increase in coverage from $500,000 to $1 million to Old Line, that the application submitted on June

2, 2000 had to be completely re-done. Beltran failed to do so, and inste~d used the same application, changing only some of the data contained in the first pagJ.

49. Beltran knew that Julio Arturo Yanez had blood pressure piblems and smoked cigarettes, yet he insisted on consolidating a policy already in efflct (Security Connecticut policy) and a policy that had been approved (the $500,000 bOlicy to be

issued by Old Line) into a separate and distinct policy, assuring that ~e would be insurable despite the associated risks. Beltran, in an attempt to sell a pOlicJ with higher l premiums, negligently breach a duty owed to Julio Arturo Yanez and SUCh breach has

resulted in damages to plaintiffS.

50. Beltran's acts and/or omissions as described above constitute negligence, l and are a direct and proximate cause of Plaintiffs' damages for which Plaintiffs now sue.

These damages include, but are not limited to, The PoliCY proceeds, meJtal pain and

suffering, and prejudgment and post-jUdgment interest. i These damageS exceed the

minimum jurisdictional limits of this Court and are of at least $1,000,000.00, exclusive of interest.

51. At the time of Beltran's negligent acts and/or omissions, he wr employed by and/or was an agent of B&C, and was acting within the scope of his althority. The

• • • conduct of Beltran described above constitutes the very acts and omissi,ons of B&C I under the doctrine of respondeat superior, vice-principal, or vicarious liabil(ty for which

Plaintiffs now sue.

L. JOINT AND SEVERAL LIABILITY

52. Defendants are jOintly and severally liable for the damages that Plaintiffs have incurred as a result of the wrongful denial of The Policy benefits.

M. ATTORNEY'S FEES AGAINST OLD LINE

53. Because of the conduct of the defendant, plaintiffs have been compelled to engage the services of an attorney to prosecute this action against the defendants. Plaintiffs are entitled to recover a reasonable sum for the necessary services of plaintiffs' attorneys in the preparation of trial of this action, including any ap'peals to the

Court of Appeals or the Texas Supreme Court. Recovery of attorney's fet is sought I under the Texas Deceptive Trade Practices Act, Chapter 38 of the Tex. eiv. Prac. &

Rem. Code, and common law.

WHEREFORE, plaintiff requests that the defendants be cited to appear and answer, and that on final trial plaintiff have the following:

1. Joint and Several Judgment against Defendants for the sum of at least S1,000,000.00.00, which amount represents the benefits payable under the insurance policy made the basis of this suit.

I . 2. Judgment against Old line for damages allowed under the Texas Deceptive

Trade Practices Act and the Texas Insurance Code, which damages aJe within the jurisdictional limits of this Court.

-- • 3. The sum of 18 percent per annum on the amount of policy benefits, as a

statutory penalty on account of the defendant's I violation of Insurance <Code Article

21.55.

4. Exemplary and Treble Damages against Old Line in an amount within the jurisdictional limits of this Court.

5. Reasonable and necessary attorney's fees against Old Line.

6. Prejudgment interest as provided by Jaw.

7. Post-judgment interest as provided by law.

8. Costs of suit.

9. Such other and further relief to which plaintiff may be justly entitieo.

Respectfully submitted,

ALVAREZ & NOTZON, L.L.P. 415 Shiloh Drive Laredo, Texas 78045 (956) 717-8880 (956) 717-8877 (fax)

(. ~ c()Q"'---.. PATRICIA O. ALVAREZ Federal Bar No. 14473 Slate Bar No. 01128550 ELISAMAR SOTO Federal Bar No. 27949 State Bar No. 24028002

• THE OLD LINE LIFE Insurance Company of America

. . I 707 North Eleventh Street. PO Box 401 • Milwaukee WI 53201-0401 • 888 653 5483

, . . ~O~t THE OLD LINE LIFE INSURANCE COMPANY OF AMERICA. A STOCK COMPANY (REFERRED T IN THIS I POLICY AS WEJUS/OUR) WILL PAY THE BENEFITS OF THIS POLICY SUBJECT TO ITS PROVISIONS. THIS PAGE AND THE PAGES THAT FOLLOW ARE PART OF THIS POLICY. I . SIGNED AT OUR HOME OfFICE AT 707 NORTH ELEVENTH STREET, P.O. BOX 401, MILWAUKEE, WISCONSIN 53201 0401.

Secretary President & CEO

RIGHT TO RETURN POLICY

THE OWNER MAY RETURN THIS POLICY TO US AT THE ABOVE ADDRESS OR TO THE "GENT FROM WHOM IT WAS PURCHASED WITHIN 30 DAYS AFTER RECEIPT THIS POLICY WILL THEN BE CANCELLED AS OF ITS DATE OF ISSUE ANO ANY PREMIUM PAID "'~LL 8E RERJNDED.

807133 NW TOlO»'' ' ' ',. I I

EXHIBIT

A

. ' • TABLE OF CONTENTS • PAGE TITLE OF PROVISION

7 ASSIGNMENT 7 BENU IClARY 7 CHANGE OF OWNER OR BENEFICIARY 7 CLAIMS OF CREDITORS 7 CONTRACT 7 CORRESPONDENCE 5 DEFINITIONS 6 EXCHANGE OPTIONS 5 GRACE PERIOD 3 I NCONTESTABILI TY 7 MISSTATEMENT OF AGE OR SEX 5 NONPARTICIPATING 7 OWNER 3 PAYMENT OF PROCEEDS 7 POLICY SETTLEMENT 2 POLICY SP~CIFICATIONS 5 PREMIUM PAYMENT 5 REINSTATEMENT 5 RENEWAL OPTION 5 RIGHT TO CHANGE PREMIUM COVER RIGHT TO RETURN POLICY 2 SCHEDULE OF BENEFITS AND PREMIUMS 3 SUICIDE LAST TABLE OF PREMIUMS

SEE SUPPLEMENTAL SENEF IT PAGES FOR RIDERS. IF ANY

RENEWABLE LEVEL TERM LIFE POLICY _•.INDETERIIINATE PREMIUM INSURANCE PAYABLE IN EVENT OF DEATH PRIOR TO EXPIRY DATE I P.REIIIUMS PAYABLE DURING TERM NO OITOENOS

SO-RCT 790 MMO 112648 RAGE

. -------t--

... • NOTICE PAGE

• , IMPORTANT INFORMATION ABOUT COVERAGE UNDER. THE TEXA.~ LifE, ACCIQENT, HEALTH AND HOSPITAL SERVICE INSURANCE GUARANTY ASS0CIATI0I'·f .:

Note: The terms "policy" and "policyholder" as used in this Notice shall be read tb mean "certificate" and "Certificateholder" respectively, as applicable to persons insured under a group insurance plan.

Texas law establishes a system, administered by the Texas Ufe, Acc;dent~lth Jnd Hospital Service Insurance Guaranty Association (the "Association"), to protect POIiCY~~ld,~r • ~ their life or. health insurance company fails to or cannot meet its co~tractual ob~igations. C?nly'fue ?1i~~~S of insura~ce companle~ which· are members of th~ AssOCiation. are. ell~I~le for thiS prate .1 ~r. even If a company IS a member of the AssoclallOn, protection IS hmlted and policyholder. must ~t certain guidelines to quality. (The law is found in the Texas Insurance Code, Article 21.28-D.) J/ .. . . I BECAUSE OF STATUTORY LIMITATIONS ON POLICYHOLDER PROTECTION, IT IS POSSIBLE. THAT THE ASSOCIATION MAY NOT COVERVOURPOLICY OR MAY NOT COVER V6i.JR'POL!CV' IN FULL. .

ELIGIBILITY FOR PROTECTION BY THE ASSOCIATION

When an insurance company which is a member of the Association is designateq as impaired by the Texas Commissioner of Insurance, the Association provides coverage to policyholders who are: • reSidents of Texas at the time thaI their insurance company is impaired . • residents of other states, ONLY if the following conditions are met: 1) The policyholder has a policy with a company based in Texas; 2) The company has never held a license in the policyholder's state of reSidence;· 3) The policyholder'S state of residence has a Similar guaranty association; and I ·4) The policyholder is not eligible for coverage by the guaranty association of the policyholder's state of residence.

LIMITS OF PROTECTION BY THE ASSOCIATION

Accident,·Accident and Health. or Health Insurance: a • up to total of $200,000 for one or more poliCies for each individual covered. Ufe Insurance:

Individual Annuities: . . . I • net cash surrender value up to a tolal of $100,000 under one or more poliCies on anyone life; or • death I;>enefils up to a total $300,000 under one or more pOlicies on anyone life.

Group Annuities: . . I . • net cash surrender amount up to a lotal 01 $100,000 under one Or more policies owned by one contractholder.

• • net cash surrender amount up 10 $100.000 in allocated benefi!s under one or more policies owned by one contraclholder; or I • net cash surrender amount up to $5,000.000 in unallocated benefits under one contractholder regardless of the number of contracts.

THE INSURANCE ·COMPANY AND ITS AGENTS ARE PROHIBITED BY LAW FROM USI~G THE EXISTENCE OF THE ASSOCIATION FOR THE PURPOSE OF SALES, SOUCITATION, OR INb(icEMENT TO PURCHASE ANY FORM OF INSURANCE,. . I .. When you are selecting an insurance company, you should not rely on covera~ by the ASSOCiation. . Texas Ufe, Accident, Health and Hospital I Texas Department of Insurance Service Insurance Guaranty Association 310 Congress, .Suite 500 P.O.. Box 149104 I Aus\ln, Texas 78714-9104 Austin, Texas 78701 800-252-3439 800-982-6362

Page 1A Np·1A TX

• • •

(THIS PAGE IS INTENTIONALLY LEFT BLANK.) NP-1B TX page 18

IMPORTANT NOTICE :" ; :-) ..

To obtain information Or make a .compiaint: .' ,;. > You may call1he Company's toll-free telepho~'e" number for information o(to make a complaint at

1-800-487-5433

You may contact the Texas Department of Insurance to obtain information on companies, coverage, rights or complaints at

1-800-252-3439

You may ,vrite the Texas Department of Insurance Puede exeribir al DE,oa:rtamEmto P.O. Box 149104 Austin, TX 78714·9104 FAX #(512) 475·1771

PREMIUM OR CLAIM DISPUTES: DISPUTAS SOBRE "KIM"::iIU Should you have a dispute concerning your. premium or about a claim, you should contact the agent or the Si tiene una disputa conclerrliel1te a su prima a a un Company first. It the dispute is not resolved, you may reclamo, debe agente 0 18 Cam- contact the Texas Department of Insurance. pania primero. Si no se Ie dispute, puede entonces comunicarse can. el (TDI). ATIACH THIS NOTICE TO YOUR POllCY/ CERTIFICATE; UNA ESTE AVISO A SU P01l2'.A1(~EFlTlFIC:A[)O;

This notice is for information only and does not Este aviso es solo para pr~:p~~~:~~di~e;njnformaCion y become a part or condition of lhe attached document no se convierte en parte 0 del documento adjuntc.

." .-

:." . Page 1C

• • NOTICE PAGE (Continued)

. .' NOTICE REGARDING REINSTATEMENT OF A L;Ai~~;~lj!fttti~~~~~ TO THE MENTAL INCAPACITY OF N: "':~kEEP THIS NOTICE WITH YOUR INSURANCE PAPERS IT WiAY~':~"'!~i~;i THE F U T U R E ' ELIGiBILITY If your policy lapses, it may be eligible for reinstatement if all of ihe following co;nditio'1s 1, The policy has been in force continuously for at least five years immediately lapse; , , 2, All premiums have been paid in a timely manner during this period; 3.-The lapse results from an unint~ntional default in premium payments caused by , of the insured; and 4. We receive a request for reinstatement and proof ot the insured's mental inca from the date of the lapse. , PROOF AND REQUEST To establish proof of the insured's mental incapacity, we must be provided with a diagnosis by a physician licensed in Texas and qualified to' make the diagnosis. We will accept the proof and request for reinstatement from: ' I 1, you; .2. the insured, if you are not the insured; 3. the legal guardian ot the insured; (::-;----0 ~:~;\ 4, other legal representative of the Insured; or IIf[y \\ ,,'s {('.,. /: i,/:::::!J ,\.y- 5, the legal representative of the estate at the insured. "'- if I( MENTAL INCAPACITY I Mental incapacity means lacking the ability, based on reasonable medical judgment, to ,understand and fJ appreciate the nature and consequences of a decision regarding failure to pay a premium when due and. the Jib(lity to reach an informed decision in the matter. REINsTATEMENT ., -_. tOo,... • _~' . •

" We ;wi1l:reinstate an eligible policy within a period ot one year after the date of lapse. We will require paYr!l.eht,of.~II ',ir,iJpaid prem\ums, plus 6% interest, from the date at japse to the .date of reinstatement. 1. YOuj;PP.Ii.~Y.4"iU,t),,~,tr.~at~ as if it has been iot,orce continlJOUSIY:,s,ince the lapse:1 ,2. T:he 'p'qli.cy~provl{>lons ~III apply as If there' had been no lapse; and.- ' 3. You civill :be;r~qLiired,.tOOmal5e,'any and all future premium 'payments -required by the policy provisions toke'~p th~e J)qlipY;}Jl4()rc~,".· " ' ,,', . ", -"'.- .;,', .'.... . I ' .

REDUcED BENEF.iTS ' We will pay the death ben,.fit. (in.cle;: ,a'n eligi~[e p6licy'if the insur~.d dies within one year from the date of lapse, provided that the reqlJiI'::''Tlenis for s'\lbmittlrig ,proof of iTI~ntal inc~pacity and !request for reinstate- ment are met. We may reduce. the death 'benefit by any unpaid premiums due, plus 6% Interest from the date of lapse to the date oi death. " EXCEPTIONS

I We are not required to reinstate the policy or pay the death benefit if the insured becomes mentally incapacitated atter the grace period contained in the policy expires. DEFINITIONS

You and Your· The owner of the policy. .. ,..1 ' . Lapse· The due date of the last premiurn that remains unpaid after the expIration of the grace period defined in the policy" I . page 1E Np·1E TX

• POll.CY SPE elF I CAT! ONS • • .;," - .- . . , "- " .

INSURED JULIO A YANEZ /'\1\0112648 POLICY NUMBER . . ,. j,-'.-

'R. FACE AMOUNT $1,000,000 C~£IV£l) 10/13/2000 DATE OF ISSUE PREMI WI CLASS TOBACCO JUlyl' 56 AGE AT ISSUE STANDARD ~/ A" 2001 ""1!A1S SCHEDULE OF. BENEFITS AND PREMIU~S

SENEF ITS LI FE INSURANCE BENEFIT AMOUNTS ANNUAL PREMIUMS SI,OOO,OOO 513,530.00 (!;~ ,', - .n ~~YABLE '-"-' V YEARS

I~E;~RS'; INITIAL EXPIRY DATE ff1i~ 10/13/2015

SUBSEQUENT EXPIRY DATES WI LL OCCUR AT 'THE END OF EACH ONE YEAR RENEW«LE TERM PERIOD,' THE FINAL EXPIRY DATE IS 10/13;2039. TOTAL FIRST YEAR ANNUAL PREMIUM

- 513,530.00

PREMI UMS OTHER 'THAN ANNUAL (ARE A PERCENTAGE 0; THLANll.UAUB.EMI ;;t;\, -, l PREMIUMS ARE PAYABLE AT 01 MONTH INTERVALS .FROM 10/13/2000. INTERVAL PREMIUM IS $1. J83.88. THE FIRST _

" RENEWAL PREIII UMS ARE SHOWN ON THE LAST PAGE. ON THE TENTH POLIOY ANN I VERSARY AND ANY LATER POL I CY ~NlU VERSARY WE HAVE A LIMITED RIGHT TO CHANGE THE PREMIUM. SEE THE RIGHT TO CHANGE PREMIUM PROVISION.

THIS POLlcy'MAY BE EXCHANGEO FOR A NEW POLICY. SEE THE EXCHANGE Op,TIONS PROVISION. OPTION I IS AVAILABLE UNTIL THE THIRTEENTH POLICY ANNIVERSARY, PROVIDED THE INSURED IS ,AGE 65 ,OR LESS ON THE,DATE OF EXCHANGE. THE DATE Of EXCHANGE UNDER OPTfoN, 2 IS THE FI.FTEENTH POLICY ANNIVERSARY. PROVlDEO THE I NSUREO I SAGE .65 OR LESS .

.... -.,-,,(\

.!

.' PAYMENT OF·PROCEEDS • • THE FACE AMOUNT WILL BE PAID TO THE BENEFICIARY IMEOIATELY UpifN'::'RE~~;:pf -- ..,'. OF DUE PROOF OF· THE DEATH OF THE INSURED IF DEATH OCCURS PRIOR TO' THE' EX? I RY DATE. IF DEATH OCCURS I II THE GRACE PER I 00 OF ANUN?A 1'0PREi1i UM " , ' AN AMOUNT EQUAL TO THE PREMI UM FOR ONE MONTH WI LL BE DEDUCTED, FROM THE' .,:. "'.'

::~:~::S "'·l":..~;,'l?:;f~f~:>::~t~ ·f, ,:'.;,).\~):':~~::.)!~:'.k ;XCLUS ION

IN THE EVENT OF THE SUICIDE OF THE INSURED. WHILESANE OR INSANE •. WITHIII 2, YEARS FROM THE DATE OF ISSUE, OUR LIABILITY WILL BE LIMITED ",-'.~_".;i:·,:;({p;""';',:';.l;;:~ TO THE PREMIUMS PAID. . "'J.,.;j';t.':-f-;'~'i;"'"

INCONTESTABILITY

WE WILL NOT CONTEST THIS POLICY AFTER IT HAS BEEN IN FORCE DURING THE LIFETIME OF THE INSURED FOR TWO YEARS FROM.THE' DATE :oFiS5UE. WE WILL NOT CONTEST ANY RE I NSTATEMENT AFTER THE RE I NSTATEMENT HAS BE EN IN FO'RCE ..... '- DURING THE LIFETIME OF THE INSURED FOR TWO YEARS. • ' IF WE .. DO '" ~. CONTEST •• - • • fA 1 REINSTATEMENT. WE WILL CONTEST ONLY STATEMENTS MADE l.N THE· REINSTATEMENT APPLICATION. .. . .,....,.-'-: ~ - ~.-:

.:.. .

. ~;" .,.-

;,

BO-ReT 7Q-, 1'11'10112648 3 .- .' . • •

. . )!~./ 'I !j

..

(THIS PAGE IS INTENTIONAllY LEFT BLANK.)

SO-RCT 7q-4 1-\1'\0112648 PAGE 4

DEFINITIONS

• • -:-ge means age last birthday at the beginning of a policy year. • PoliCY months, years and anniversaries. The first policy year begins on the date of issue. PoUcy months. years and annrversaries will be measured from that date.

PREMIUM PAYMENT

The first premium is dUB on or before delivery of this policy. Later premiums are due and payable al the intervals and for the period shown on page 2, while the insured ;s alive. Wltn our consent, premiums may be paid at other interVals_

Premrums after the first are payable a1 our home office or to an authorized agent in exchange for a receIpt signed by ons of our officers.

Any premium, afier the first. not paid on or before its due date will be in default. Such due date will be the date of default.

GRACE PERIOD . I A 31 day grace penod. without interest charge, is allowed for the payment of each premium after the first. This policy will stay in force during this period. If the premium. is not paid by the end of this period, insurance wilJ cease.

REINSTATEMENT

This policy may be reInstated within five years of the date of default subject to receipt of evidence oi insurability satisfactory to ~. I Reinstatement will also be subject to (1) payment of the premium for the grace perio_d with interest at !the rate of 6% per ,year compounded annually p.lus the premium due for the current policy month, jf this policy has a renewable Iterm period of one year. or (2} payment of all overdue premiums with interest at the rate of 6% per year compounded_.annual!y, if this policy has a renewable term period other than one year. ' /;"-~...:.. I NONPARTICIPATING (~. (·-1 ~l i:: ~\ /il'~"" This pelicy does not pay dividends. "-4_'~ / /....~"./ ) \:::-;> RENEWAL OPTION ,j

I This policy may be renewed wfthout evidence of inslJiability on each expiry date for a further term period, Renewal premiums are shown on the last p a g e . ' _ The first premium for a new term will be due at the end of the previous term. This pofiey will renew if this premium is paid within 1he grace period. Premiums for the new term will be due and payable at the intervals shown on page 2.

No term period will extend beyond the final expiry date shown on page 2.

RIGHT TO CHANGE PREMIUM

We reserve the right to change the premium for this policy on the policy anniversary speCified on page 2 and on any later pOncy anniversary, subject to the following terms:

1. The premium will not exceed the appncable max·lmum premium shown on the last page.

2. Any change in premium will be made on a uniform basis for all ins~reds wi~h the .same benef(~ anq proviSion~ who .have t~e same age at issue, date of issue. sex end premium class. No change In premium will occur due to any change 10 the Insured 5 heaJth or oc.cupation.

3. Any change to premium will take effect only after 30 days' prior notice'to the owner of this policy.

4. Any change in premium will be determined prospectively. We will not distribute past gains or recoup prior losses, if any. by changing the premium. ,

This provision does not apply to any rider attached to this policy.

Page 5 SO·RCT 79·05

EXCHANGE OPTIONS I Optfonl • •

• • This policy may be exchanged for a new level premium life or endowment policy with a level face amoJnt. If no IS In pr~mjum defauft and the insured does not qualify for disability benefits under this policy. written application may option is available. as speclfied on page 2. be I made at any time this

The new policy wiil be issued as of the date of exchange based on the insured's age on that date ~md the premium rate then in

- I The new poUCy must comply with our then current rules for amount, age and premium class. The face amount may not exceed . . the amount of insurance under this policy On the date of exchange. The pr.emium class will be the same as this policy.

The suicide and contestable periods of the new policy will be reduced by the elapsed portion of theee peribcts under this policy.

The new policy will be issued with a disabllity rider and/or accidental death rider it these riders are in fJce under. this policy at the date of eXChange and are available at the insured's age on such date. Any rider not in force may be included in the new policy only with our consent.

Option 2 ," '"I This option is available only on the date of exchange specified on page 2. We agree to exchange this.:p-oiicy for a new renewable level term policy on the life of the insured. Evidence of insurabifity satisfactory to us will. be requirstl /of the insured. SUCh evidence win be paid for by us and will be based on our then current underwriting rules, ....:::.=:~ (~ .J /;:':'"

This exchange wiH be subject to the following terms: \." -" i"_ . -_..' ,;.-/ ..... :""..1 ~ h Jp'": 1. A properly completed application must be submitted to us within 60 days prior to the date of exchange, along with payment of the first premium for the new policy. _ - _ ,_ .•

2. This policy must be in full force and all premiums due prior to the date of exchange must be paid. Insurance under this potiey will cease when thts policy is exchanged.

3. The age at issue for the new policy will be the age of the insured ?n the date of exchange.

4. The new policy will be on the same plan of insurance as this policy. Altematively, the owner may elect any other plan w'rth a shorter renewable term period then being issued on this policy form. The date of issue of the new policy will be the date of exchange. The face amount of tne new policy may not exceed the face amount of this policy and must meet or exceed the minimum then in effect tor the plan elected. . [

5. Any benefits or riders in force under this policy on the date of exchange wi!! be included in the new wHey and will be subject to our then current rules and rates.

6. The new policy will not have a suicide provision.

7. The contestable period of the new policy win start on the date of exchange. with respect to the evidence of insurability used to qualify the insured for the new policy. However. ~e may contest only the difference between the face ainoun~ of the new policy and the face amount that the premium for the new policy. excfuding the. premium for any riders. WOUldl have purchased on the date of exchange had this policy remained in force. . . 8. The premium rates for the new policy wiIJ be our then current rates applicabJe to a new purchase of the plan elected.

SO-RCT 79-6 page 6

--------------------~

OWNER

• • • The ~wner is as shown in the application unless changed. The owner has all rights under this policy while the insured is alive. These rights are subject to the consent of any living irrevocable beneficiary. .

BENEFICIARY

The beneficiary is as shown in the application unless changed. f1 no beneficiary survives the insured. the Owner or estate the of the owner will be the beneficiary. However. if a trust is the owner &nd no beneficiary survives the insured. the estate of the insured wiIJ be the be'neficiary.

CHANGE OF OWNER OR BENEFICIARY

While the insured ~s alive. the owner may change the beneficiary or ownership by written notice to us. When we record the change. it will take effect as of the date the owner signed the notice, subject to any payment we .~kelor other action we ta~e before recording. /'.-- ... ~. (( ""/1-' CORRESPONDENCE "'-" ""'-- ("J -,; !-. , .'j ... /~, .. • /;'-._1;:1. Any request. notice or proof shall be ftled with our home office, -.. .:.-. .- ./ F' -' ) L. . .:;· ·oJ t./" . . . ASSIGNMENT

No assignment of this policy will bind us until filed with us in writing. It will not apply to any payment made before the assignment was filed. 'We wi!! not be responsible for its validity"

All rights of the owner and any beneficiary are subject to the rights of any assignee on rec.ord with us_ POLICY SETTLEMENT

If this poHcy has not been endorsed to show the payment options available under a settlement contract. Ipolicy proceeds may be paid under a settlement contract in accordance with our current company rules.

In any settlement we may requke the return of this policy,

THE CONTRACT

I This poney. including any riders ano' endorsements, the original application and any supplemental applications are the entire contract.

I. All staiements in an application are representations and not warranties. No statement will be used to void this policy or to deny a claim unless it appears in an application which is attached to and made part of this policy.

Th'ls policy may not be changed. nor any of our rights or reqUirements be waived, except in writing by one of our authorized oHicers.

MISSTATEMENT OF AGE OR SEX

If the insur8<;fs age or sex has been misstated. any amount payable by us will be what the premiums paid would have bought at- the correct age and sex.

CLAIMS OF CREDITORS

assigned or withdrawn without our consent before becoming payable. . I All payments under this policy are exempt from the claims of creditors to the extent permitted by law. Payments may not be

BO-RCT 79-7 Page 7

'. ENDORSEMENT

• • • ]l;le !;>ayment Options of the policy to which this endorsement is attached will be as follows:

PAYMENT OPTIONS

The term ftannuitanVmsured" as used in the follo\'Ving paragraph means the person named in the Policy Specifications as annuitant or insured, as the case may be.

Proceeds of less than S5,OOO will be paid in one lump sum. Proceeds of S5,OOO or more may be paid under an option. When proceeds are placed under an option the payee will receive a settlement contract. The date of the contract will be the daie the proceeds become payable. The Owner may choose the option only while the annuitanVinsured is living. After the death of the annuitantiinsured, the beneficiary may choose the option if proceeds are payable in one sum. Payment options for death proceeds must be chosen within six months after the annuitant'slinsured's death. Payment options for other proceeds must be chosen within two months of the date they are payable. All .eiections must be filed with uS in writing. Payments njay be requested at 1. 3, 6 Of' 12 month· intervals. Each payment must be at least $50. Each payee must be a living person receiving payments in his Own M~ . 1 The interest rate far options 1, 2 and 3 wil! be declared by us each year. ThiS rate will never be less than 3% per year. For options 1 and 3 any interest in excess of 3% will be used to inCl'ease payment amounts; for op1ion 2 any excess interest will be used to lengthen the payment period. , . ! For options 4, 5, 6 and 7 the payments wi!! be based on rates declared by us 1rom time to time. These rates wilt be 3 112% less than the published rate"s in eff&ct for immediate annuities on the date 01 the settlement contract. Payments under these rates will n-ever be les~ than the amount according to .the tables of minimum monthly income in this endorsement. The rates in the tables are derived from a projection of the 1983 Table "a", and an annual iota-res: rate of 3.00%, I ma~ be withdrawn up to four times a yea~. o. I Option 1. Interest. We win hold the proceeds on deposit Interest will be paid while the payee is living_ Sums of $500- or more

Option 2. Specified Income. We will pay a stated income amount until the proceeds, with jfi'i:e-re~t on the unpaid balance, are used up. The income each year may not be less than 10% of the proceeds. :;' . /-:'--',-':-:

Option 3. Income for SpeCified Period. We will pay an income for a stated period. up to 30 y-~rs( ,)/:?~)!'-. --"1/'.:::>' ;' resi~e payee's Option 4. Life Income with Guaranteed Period. We win pay an income for a guaranteed period and for' the fife. The guaranteed period may be 10. 15 or 20 years. I It Option 5. Life I.~come without Guaranteed Period. We will pay an income for the payee's lifetime. Payments will end at the death of the payee. However if the payee dies within one year of the date Of the settlement contract. payments will be continued I

~o a conting~nt payee until 10 ye~rs from the date of the settlement contract. I - Option 6. Ufe Income with Installment Refund. We will pay an income for a guaranteed penod and for the rest of the payee's me. The guaranteed period is the period required for the sum of incom.e payments to equal the proceeds' applied.

Optlon 7. JOi~t Life Income with 213 to Survivor. We will pay an income while both payees are liVi~9. When one payee'· dies we will pay 213 of the income for the rest of the survivor's life. However. if one payee dies ~ithin one ,year from the date of the

I settlement. contract. income will 'be -paid to the sUlVivor thereafter as if the survivor had chosen option 5 on the date of the ~~~-.. Additional Option to Buy Single Premium Immediate Life Annuity at Reduced Rate. If proceeds of at least S5.000 are applied under option 4, 5, 6 or 7, additional money may be used to buy a single premium immediate life annuity. The cost of this annuity wiil be 3 1/2% less than the then published rate. The monthly income from this annuity togethef with the monthly incor:ne from option 4, 5, 6 or 7 may not exceed 3 times the monthly income which could be bought solely by applying the policy. proceeds. Written request must be made within 31 days from the date proceeds are payable.

(Continued on page 2) P03·NO 79-10 Page' PAYMENT OPTIONS (Continued) •

• Pay",,,nt Provisions. The first payment under options 2. 3, 4, 5, 6 or 7 will be due as of the date of the settlement contract. The 'fi'rst payment under option 1 will be due. at the end of the first interest pertod. If any payments remain under an option at the death of the payee. or at the death of the surviving payee in regard to option 7, the amount stated below will be paid in one sum to the payee's executors or administrators. unless otherwise directed in the election of the option:

Option i. MY amount leH on deposit with accrued interest. Option 2. The unpaid balance of proceeds y<ith accrued interest.

period. . I Option 3. The commuted value, based on in1erest at 3% per year, of any future income payments for the stated guaranteed

Options 4. 5. 5 or 7. The commuted value of any future income payments for the stated guaranteed period. based on interest as

fO!l~WS: ' . . . . . . . J 1. if payments are made accordtng to the tables of mlmmum monthly Income In thiS endorsement, 3% per year; or

2. if payments are based on the published rates in effect Tor immediate annuities, the interest rate IShown in the settlement contract. 1 Evldence of Age and Survival. We may require due proof of age and continued survival of a payee under options 4. 5. 6 or 7

Special Agreements. Policy proceeds may be paid in any other manner agreed to by us.

THE OLD LINE LIFE Insurance Compan), . of America

Page 2

MINIMUM MONTHLY INCOME FOR OPTIONS FOR EACH

.. OPTION 3 INCOME FOR ,:". OPTION./I LIFE INCOME Willi SPECIF'EO PERIOD ~UA:RAN1'EED PERIOD AGE AT FIRST PAYMENT

,,, S84..47 5 and under 52.72 S2.72 $2.72 42.88 28.99 • 7 2::;'3 2.74 2.73 2.74 2.73 2.74 2.74 22.06 8 2.75 .2.75 2.75 2.7.5 5 17.91 9 2.76 2,76 2.76 •, 15.14 13.16 10 11 2.77 2.78 -2..77 "2.78 2.n 2.78 2.76 'lJ7 2;18 , 8 '1.& 10.53 12 13 2.79 2.80 2.79 :?"SO .2.79 2.80 2.79 2.80 10 9.61 2.81 2.81 2.81 2.81 8.86 "15 " ,. .2.82 2.82 2 ..82 2.82 12 8.2-4 16 2.63 2;83 2.83 2.83 .3 7.71 17 2.85 2.85 2.8' 2,85 726 " 15 16 6.a7 6.53 19 20 2.B6 2.87 2.89 2.86 2.87 2.S9 "'2.86 -2:87 2,86 2.87 '.2:89 2.89 17 6.23 21 a.filo 2.90 2.90' , _ 2.90 1B 5.96 22 2.92 2.92 :.2.92 - .. '... :.2.92 19 5.73 23 2.9S 2.93 '2.93 · 2.93 20 5.51 2. 2.95 2.GS ~.95 '-;' .2.95 21 5.32 25 2.9( 2.97 -2.96 ~... .-2.97 22 5.15 26 2.98 2.9$ 2.98 '·.,2,98 23 4.99 27 3.00 3.00 -3.00 '3.00 " 25 4.84 4.71 28 2. 3.02 3.04 3.02 3.04 ·3.02 3.04 · ~,02 ; 3.:04 t ,

25 4.59 30 3.06 3.06 .3.06 · 3.06 .' 27 4.48 "33 3.09 3.08. ·.~.O8 · '3:09

. "t~;~,~ 28 4.37 32 3.11 .3.11 . 3.11 ·"\i,;: 29 4.27 3.13 3.13 .'3.-13 '. 30 4. '8 34 3.16 3.16 .3.'15 35 3.18 3.18 3.1S : 36 3.21 3.21 3;21 37 3.24 3.2.1l S.U 3,24 38 3.2' :3.27 ·3.27 3.27 3. 3.30 3.30 3.30 3,30 40 3.34 3.33 3.33 3.34

" 42 43 3.37 3.41 3.4.4 3.37 3.40 ::3.44 3.36 3.40 3.4~t 3.37 3.41 3.45 3.35 .. S;39.-,:~_ SAC: . d4 J.49 3.48 3.47 3A9 ~3.:046

. 45 3.53 3.52 3.51 3.53 ·"S.50 46 aS7 3.51 3.55 3.58 3.54. 47 3.62 3.61 3.60 3.62 3.58. 3.67 3-66 3.64 3_67 3.,?3~. 49 3.72 :l.7l 3.69 3,73 .3tiS' 50 3.78 3.7. 3.74 3.78 3.73 51 3.83 3.82 3.79 3.84 3.78' '., " 52 3.90 3.88 3.S5 '3.90 3,83 53 3.96 3.94 3.90 S.97 3.89 < ''-:'. 54 4.03 4.00 3.96 4,04 , --:. ;.~ 3.95 55 4.10 4,07 4.02 4,12 4,02 56 4.17 4.14 4.09 4.19 4.08 57 4.25 4.22 4.15 '::.28 4.15 58 4.34 4.29 4.22 4.36 '.23 59 J.42 4,37 4.29 4A6 4.30 60 4.52 4.46 4.36 4.56 4.39 4.62 4.55 4.44 4.47 "' 62 63 4.72 •. &< 01'-64 4.74 4.51 4,59 4.56 4.78 4.90 4.56 4.6S ••65 4.95 5.08 4.84 4.95 4.66 4.74 5.03 5.17 •.76 4.87 56 5.21 5.06 4.81 5,31 4.9$ 67 5.305 5.17 4.89 5.47 5.10 68 5.50 5.28 4.96 5.55 5.23 6. 5.66 5 ..40 5.03 5.83 5.36 10 5.82 5.52 5.09 6.03 5.51 71 0.00 5.64 5.15 6.25 5.66 72 6.18 5.75 5.21 6.49 5.82 73 5.37 587 5,26 6.74 5.99 74 5.56 5.98 5.30 7.02 6.17 15 6.76 8.09 5.34 7.33 6.37 16 6.97 6.19 5.38 7.eS 6.57 77 7.17 -6,29 5.41 8.0j 6.78 78 ;.3:9 6.38 5_~3 8.40 7.02 7S 1.59 6.46 5_46 8.82 7.26 80 7.79 sS3 5_47 9.28 7.52 81 and over 7.9S 6.59 S•.d9 9.78 7_79

Page 3 P03-F 79-3

TAWF MINIMUM MONTHLY INCOME FOR M*,AYEES UNO AYMENT OPTIONS FOR EACH $1,000 0 CEEDS

, . OPTION 3 INCOME FOA UFE OPTiON 4 I~COME WITH OPTION 5 1.1FE;: iNCOME OFTION 6 LIFE INCOME sp-eCIASO peRIOD GUARANTEED PERIOD WlTHOlIT WTT" AGE AT FIRST GUARANTEED iNSTALLMENT PAYMENT PERIOD REFUND , $84.47 5 and under $2.78 S2.78 $2.78 S 2.78 52.79 . 2 42.86 6 ?79 2.19 2.79 2.79 2.79 3 28_99 7 2.80 2.80 2.80 2.SO 2.80 •5 :22.06 17.S1 8 9 2.81 2.s2 2.81 2.82 2.81 2.82 2_81 2.S2 2.81 2.82 6 15.14 '0 2.84 2.84 2.83 2.84 2.83 7 13.16 11 a.85 2.85 2.85 2.25 2.84 • 9 ,UIS 10.53 '2 ,. 13 2.86 2.87 2.86 2.87 2.86 .2:.87 2.86 2.88 2,gS 2.87 '0 9.61 2.89 2.89 2.'" 2.89 2.88 8.86 2.90 2,90 " 12 8.24 '5 '6 2.92 2.92 2.90 2.91 t J;"'" ?-:92"') 2.90 2.91

"" "'8 7.71 2.93 2.93 2.93

~ 2.93 7,26 2.95 2.95 2.95 '5 6.87 '9 2.97 2.96 2.96 16 6.53 20 2.98 2.98 2.98 2.98 6.23 " 18 19 5.96 5.73 21 22 23 3.00 3.02 J.04 3.00 3.02 3.04 3.00 3.02 3.GS 3.00 3.02 3.04 20 5.51 24 3.06 3.06 3.06 3.06 3.05 2, 22 5.32 5.15 ,. 25 S.08 3.10 3.08 3.10 3.08 3.10 3.08 3.10 3.07 3.09 23 4.99 27 3.13 3.12 3_12 3.13 3.11 2. 4.84 28 3.15 3.15 3.14 3.15 3.'4 25 4.71 29 3.18 3.17 3.t7 3.18 3.1I:i 25 .<1.59 30 J.20 3.20 3.19 3.20 3.1~ 21 4.48 31 3.23 3.23 3.22 3.23 .3.21 28 4.37 32 :;.26 3.25 3.25 3.:"; 3.24 ,., . 25 30 4.27 4.18 33 3' 3.29 3.32 3.29 3.32 3.28 3.31 3.29 3.32 3.2.7 3.3<> 35 3.35 :U5 3.84 3.36 3.33 36 3.39 3.38 3.37 3.39 3.36 37 3.43 3,42 3.41 3.43 3.39 38 3.46 3.~6 3.44 3.47 3.4'3 39 3.50 3.50 3.48 3.51 3.47 '0 3.55 3.5~ 3.52 3.55 3.5IJ 3.S9 3.5a 3.56 "'2 3.8<1 3.62 3.67 3.60 3.50 3.64 3.54 3.56 43 ~.58 3.65 3.69 3.63 3.74 3.12 "'5 3.79 3.77 3.69 3-.74 3.75 3.s0 3.67 3.72 4. 3.84 3.52 3.79 3.SS 3~n 3.88 3.8 4 " '8 '5 3.90 3.91 4.03 3.94 4.00 3.89 3.95 3.92 3.99 4.05 3.82 H8 3.93 50 4.10 4.06 .:::.00 "'.12 3.99 5' . 4.17 4_13 4.06 4.20 4.06 52 4.24 4_20 4.12 4.28 53 4.32 4.27 4.19 4.36 5' 4.41 4.35 4.25 4.45 55 4.49 4,42 4.32 4.55 56 4.59 4.51 4.38 4.64 57 '.68 4.59 4,45 4.75 58 4.79 4.68 o/LS2 d.as 5. 4.89 4.i7 4.59 4.98 .0 5.0' 4.87 .4.6S 6' 5.13 4_97 4.73 .2 5.25 5.0-7 4.80 63 5.39 5.17 4.86 6' , !j.53 5.27 4.93 65 5.67 5.38 4.99 5.34 66 5.83 5.49 5.05 5.47 67 5_98 S.60. 5.11 5.61 68 6.15 5.70 5.17 5.76 69 6.32 5.81 5.21 5.91 70 6.50 5.91 5.26 6.0B 71 6.68 6:01 5.30 6.25 72 6.86 6.11 5.34 7.S9- 6.43 73 7.05 6.20 5.S7 7.91 ~ 6.62 74 7.24 S.2~ 5.40 . 8:24 5.82 75 7,42 6.37 5.42 8.61 7.04 7. 7.61 6.44 5.44 9.01 7.26 77 7,79 6.51 5,46 9.43 7.49 78 7.97 6.57 5.48 9.89 1.7~ 75 S.ld 6.62 5.49 10.38 7.99 ,0 8.JO 6.67 5.50 10.91 8.27 8.45 6.7' 5.51 11.47 8.55

P03-M 79-4 Page 4

JF'PROC~E~~~ .. ; ··-;·~-"<.7"f}'-;.1~!,

TABLE'OF MIN'IMUM MONey INCOME UNDER PAYMENT OPTIONS F . C H 8':000 :':/~~~~·~l OPTION 7 - JOINT LIFE INCOME WITH TWO-THIRDS TO SURviVoR i ~." -. .. . . .., '

Female 40 . 45 I ' 50 55 60 65 70 75 80 Male 40 53.35 53.45 53.55 53.67 53.80 $3.94 54.10 84.28 S4.47 41 3.37 3.47 3.58 3.70 3.83 3.97 4.14 4.32 4.51 42 3.39 3.49 3.60 3.72 3.86 4.01 4.18 4.37 4.56 43 3.41 3.51 3.62 3.75 3.89 4.05 4.22 4.41 4.61 44 3.42 3.53 3.65 3.78 3.92 4.08 4.26 4.46 4.67 45 3.44 3.55 3.67 3.81 3.96 .4.12 4.31 4.51 4.72 46 3.46 3.57 3.70 3.84 3.99 4.16 4.35 4.56 4.78 47 3.48 3.59 3.72 3.87 4.03 4.20 4.40 4.61 4.84 48 3.50 3.62 3.75 3.90 4.07 4.25 4.45 I 4.67 4.90 49 3.52 3.64 3.78 3.93 4.10 4.29 4.50 4.73 4.97 p 50 51 :i.54 3.56 3.66 3.69 3.80 3.B3 3.96 4.00 4.14 4.18 ... 4,34/ ::;4"55',-\ 4.38 \,~ ......, .4~61, { . ~;.85 4.79 5.04 5.11 . "'~1 '4:92 52 3.58 3.71 I'J 3.86 4.03 4.22 4.43 ::0 '4.66~ - 5.19 53 3.60 3.73 3.89 4.07 4.26 4.48 '4~72" ii ::::;) 4\99:/' 5.27 54 3.62 3.76 3.92 4.10 4.31 4.53 4.78 ~. Si06 5.35 55 3.65 3.78 3.95 4.14 4.35 4.59 4.85 u5.13 5.43 56 3.67 3.81 3.98 4.17 4.39 4.64 4.91 5.21 5.52 57 3.69 '3.84 4.01 4.21 4.44 4.69 4.98 5.29 5.62 58 3.72 3.66 4.04 4.24 4.48 4.75 5.05 5.37 5.72 59 3.74 3.88 4.07 4.28 4.53 4.81 5.12 5.46 5.82 60 3.76 3.92 4.10 4.32 4.58 4.87 5.19 5.55 5.93 61 3.79 3.95 4.13 4.36 4.62 4.93 5.27 5.64 6.04 62 3.82 3.97 4.17 4.40 4.67 4.99 5.34 5.74 6.16 63 3.84 4.00 4.20 4.44 4.72 5.05 5.42 5.84 62B 64 3.B7 4.03 4.24 4.48 4.77 5.1 I 5.51 5.94 6.41 65 3.90 4.06 4.27 4.52 4.82 5.1e 5.59 6.05 6.54 66 3.92 4.10 4.31 4.57 4.88 5.25 5.68 6.16 6.68 67 3.95 4.13 4.34 4.61 4.93 5.31 5.76 6.28 6_83 68 3.96 4.16 4.38 4.65 4.98 5.38 5.85 6.39 6.98 69 4.01 4.19 4.42 4.70 5.04 5.45 5.94 6.51 7.13 70 4.04 4.23 4.45 4.74 5.09 5.52 6.03 6.63 7.29 71 4.07 4.26 4.49 4.78 5.14 5.59 6.12 i 6.76 7.45 72 4.10 4.29 4.53 4.83 520 5.66 6.22 6.BS 7.62 73 4.13 4.33 4.57 4.87 5.25 5.73 6.31 7.01 7.80. 74 4.16 4.36 4.61 4.92 5.31 .5.80 6.40 7.'4 7.97

75 4.18 4.39 4.65 4.96 5.36 5.87 6.50 7.27 8.15 76 4.22 4.43 4.68 5.01 5.42 5.94 6.59 7.40 8.33 77 4.25 4.46 4.72 5.05 5.47 6.00 6.68 7.53 8.52 78 4.28 4.49 4.76 5.10 5.52 6.07 6.77 7.66 B.71 79 4.31 4.53 4.80 5.14 5.58 6.14 6.87 7.79 8.89

80 4.34 '4.56 4.83 5.18 5.63 6.21 6.96 7.92 9.08 .

MINIMUM INCOME AMOUNTS FOR AGES NOT SHOWN AND MINIMUM INCOME AMOUNTS PAYABLE OTHER THAN MONTHLY WILL BE FURNISHED ON REQUEST. . I

page 5 P03·J 79·5

. ENDORSEMENT

,... p'olicy The • tei which this endorsement is attached is amended as follows: The definition of age is replaced by the following: • Age means the insured's age nearest birthday at the beginning of a policy year,

THE OLD LINE LJFElnsurance Company of America I . - J . -,

r~,. Chailrhan of the Board .-"

E-ANB 970,1

• • • I TABLE OF PREMIUMS AT THE CURRENT AND MAXIMUM RATES FOR THE FACE AMOUNT AND PREMIUM CLASS OF THIS POLICY.

WE MAY CHANGE THE CURRENT PREMIUM IN ACCORDANCE WITH THE RIGHT TO CHANGE PREMIUM PROVISION.

CURRENT MAX I tlUM ANNUAL ANNUAL LIFE LIFE POL I CY INSURANCE INSURANCE YEAR PREtllUM PREMIUM 1- 10 13.530.00 13.530.00 11 13.530.00 105.480.00 12 13.530.00 112.0]0.00 13 13.530.00 118.650.00 . 14 13.530.00 125.960.00 15 13.530.00 134.910.00 16 112.090.00 146.210.00 17 121.610.00 158.910.00 18 132.030.00 174.510.00 19 142.690.00 191;.070.00 20 153.630.00 218.340.00 21 164.110.00 248.060.00 22 174.390.00 284.210.00 23 184.830.00 328.290.00 24 196,090.00 381.780.00 25 208.970.00 446.660:00 26 222.600.00 524.600.00 27 236.690.00 610,190.00 28 252.870.00 70)'870.00 29 272.270.00 786.330.00 30 296.140.00 841.890.00 31 324.340.00, 869.640.00 32 354.860.00 884.570.00 33 389'; 750. 00 896.580.00 34 427.880.00 996,320.00 35 431.650.00 914.310.00 36 434.770.00 920.910.00 37 437.380.00 926.450.00 38 439.650.00 931, 250 .00 39 441.680.00 935.550.00

RENEWABLE LEVEL TERM LIFE POLICY -- INDETERMINATE PREMIUM INSURANCE PAYABLE IN EVENT OF DEATH PRIOR TO EXPIRY DATE I PREMIUMS PAYABLE DURING TERM I NO DIVIDENDS

SO-RCT 79-8 I LAS:T PAGE

LPT-2000 15 YEAR LPTl5 THE OLD LINE LIFE INSURANCE COMPANY OF AMERICA BELTRAN, HARRY W 707 NORTH ELEVENTH STREET STE 6 POLICY NO MM0112648 MILWAUKEE,WISCONSIN 53201 5918 MCPHERSON RD INSURED JULIO A YANEZ AGE 56 " ANNUAL PREMIUM GUARANTEED POLICY ANNUAL PREMI UM (MAX' MUM RATES 1 DEATH PAYMENT YEAR .(TU RRENT-A AlE 5.1--1·5 HA LLNOI_E XCEED_R ~:r.E.5_S1iOWN BELOW) BEGIN. OF YR . ./.::,:.. :~ ~ 13530.00 1000000 1 13530.00 1000000 2 '';',':':'"'' 13530.00 13530.00 3 ......... ', 13530.00 13530.00 1000000 4 13530.00 13530.00 1000000 1000000

• 5 '.. 13530.00 13530.00 ,'. 6 . Ii I ..' 13530.00 IJ530.00 1000000 7 .,- )" I 1J530.00 lJ530.00 1000000 8 \.::'::.:;;~ " 13530,00 13530.00 1000000 9 lJ530.00 13530.00 1000000 10 13530.00 13530.00 1000000 11 13530.00 105480.00 1000000 12 13530.00 112070.00 1000000 13 lJ530.00 116650.00 1000000 14 13530.00 125960.00 1000000 15 13530.00 134910.00 1000000 16 112090.00' 146210.00 1000000 17 121610.00 158910.00 1000000 16 132030.00 /74510.00 1000000 19 142690.00 194070.00 1000000 20 153630.00 218340.00 1000000 AT AGE 82 13530.00 135JO.00 1000000 AT AGE 65 lJ5JO.00 13530.00 1000000

• • COST INDEXES CURRENT RATES MAXIMUM RATES LifE INSUR. NET PAYMENT COST INDEX 10TH YR.- lJ.5J 13.53 20TH YR.- J 3. 23 6 J. 22 LIFE INSlJR. SURRENDER COST INDEX 10TH YR.- 13.53 13.53 20TH YR.- 33.23 .00 THE CURRENT PREMIUMS ILLUSTRATED ASSUME ANNUAL RENEWABLE PREMIUMS AfTER THE LEVEL TERM PERIOD. THE COLUMNS OF THIS REPRESENTATION DO NOT REfLECT THE fACT THAT, BECAUSE OF INTEREST, A DOLLAR IN THE fUTURE HAS . LE~S VALUE THAN A DOLLAR TODAY. -AN EXPLANAT ION Of THE INTENDED USE Of THE l I FE INSURANCE COST INDEXES I S PROVIDED IN THE LifE INSURANCE BUYERS GUIDE. . IMPORTANT NOTICE - DURING THE THIRTY DAY PERIOD FROM THE DATE OF DELIVERY OF THIS POLICY, IT MAY BE SURRENDERED TO TIlE COMPANY fOR CANCELLATION AND A fULL REFUND Of ANY MONEY PAID. fT20 1011312000 ",

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ALVAREZ & NOTZON, L.L.P. Al'TOa.....,ffiyS AT L\W

PATRICIAO. ALVAREZ* 413 SHILOH DRIVE ?IARIO BORDINI MARCEL i.:. NOTZON, III LAREDO,~'S~S ERIN MCNIECE STRIMPLE*" ALBERT M. GUTIERREZ, III (956) 71i-SS8() 111 SOLEDAD, SUITE 1775 EUSAMAR SOTO (9;6) 71?8S17 (FA.'<) SA.'1 A;",ONIO, ~ , 78205 JESUS GUILLEN E-AfaiJ: poa@nl!CScorp.ner (210) 225·2..">99 and 225·2266 (FAX)

*AJ$Ol,=$edinRM:id~ E-~1aiI: mcn@nNSCorp.net http://www.-afl."Z.I.ez-notzon.com **BoudCuri5~-P~o~aJlnjuryTn:uLaw

November 1, 2001

VIA FACSIMILE TRANSMISSION (214/654-6024) AND CMRRR # 7000 1530 0001 07322168

Ms. Patti Wadsworth Claims Department OLD LINE LIFE INSURANCE COMPANY P.O. Box 5844 Dallas, Texas 75235

Re: Policy No. MM0112648 Insured : ,fulio Yanez Dear Ms. Wadsworth:

This firm represents Rufina Reyes' de Yanez, Julio Arturo Yanez-Reyes, Ricardo Yanez-Reyes and Maria Isabel Yanez-Reyes (collectively referred to here as "Claimants"), with respect to the handling of the life insurance benefits and denial of I benefits under Policy No. MM0112648 ("The Policy") issued by your company to Julio Yanez for $1 million death benefits. The Claimants are the named beneficiaries of The Policy proceeds. . " . I On May 26. 2001, Julio Yanez passed away. At the time of his de'!th, The Policy was in full force. Subsequent to Julio Yanez' death, a request was made for payment of the policy benefits. After your company superficially investigated t~e Claimants' entitlement to The Policy benefits'. it denied the claim through a letter dated October 5, 2001 authored by you. The basis of the denial was twofold: (1) th~t Julio Yanez allegedly advised a medical examiner hired by your company that he had not been I

1 On June 6. 2001, your company sent an investigator to interview my clients. The inierview was I conducted in English, despite the fact that the investigator was advised that their command of the English language was poor. EXHIBIT .

Ms. Patti Wadsworth November 1, 2001 Page 2 • • treated for blood pressure prior to August 17, 2001; and (2) that the his health changed before the first premium was fully paid. /,

As you know, Julio Yanez was bom and raised in Mexico and spoke little English. Julio Yanez purchased The Policy in reliance that the same would providel coverage to his family in the event of his death. At the time that your company negotiated The Policy, Julio Yanez had another policy in effect. In reliance of your company's representations that he would be afforded coverage notwithstanding thai he smoked and that he had a history of high blood pressure, Julio Yanez agreed td purchase a policy from your company, and forego coverage under the other life insura'nce policy in , effect at the t i m e . , /'

The Policy premiums JUlio Yanez paid your company were in an amount greater than the usual premiums given that Julio Yanez disclosed that he was al smoker and that he had high blood pressure. Your company agreed to underwrite the insurance

I knowing of these risks. Your denial is therefore unfounded, and I am aksuming it is based on alleged misrepresentations on the part of Julio Yanez.

It is true that in Texas an insurer may deny a claim or cancel a policy on the basis of the insured's misrepresentation. However, the insurer must fir'st prove five elements: (1) the making of the representation; (2) the Jalsity of the repre~entation; (3) the insurer's reliance on the representation; (4) the insured's intent tb deceive in making the representation; and (5) the materiality of the representatioh. Mayes v. Massachusetts Mut. Life Ins. Co., 608 S.W.2d 612,616 (Tex.1980); Oarbyv. Jefferson Ufe Ins. Co., 998 S.W.2d 622 (Tex. App.-Houston [l't Dist.] 1995, no writ); Republic-Vanguard Life Ins. Co. v. Walters, 728 S.w.2d 415, 418 (TexApp.-Houston [1 st Dist.] 1,987, no writ). . /

As stated above, Julio Yanez spoke little English. His understanding of this language was virtually null. In addition, the application for insurance that rle signed was not filled out by him-in fact, the only writing in the application that lis his is the signature. The Policy was never explained to him, and your company made no effort to send a representative to go over the terms and conditions that you now ciaim preclude coverage. Moreover, as stated above, at the time that the policy applicati6n was made, your company was advised that 'Julio Yanez was a smoker and that he h6d high blood pressure. Accordingly, tlie third element of the Mayes test set forth abov~ (reliance by the insurer) is not met. I , Under Texas law, reliance is established when the insurer does Inot know the representations are false. See Koral Indus., Inc. v. Security- Connecticu\ Life Ins. Co., 788 S.w.2d 136, 146 (Tex.App.-Dallas), writ denied per curiam, 802, S.w.2d 650 (Tex.1990) (finding that actual knowledge of falsity defeats misrepresenta:~ion defense); John Hancock Mut. Life Ins. Co. v. Brennan, 324 S.W.2d 610, 614 (Tex.Civ.App.-San Antonio 1959, writ refd n.r.e.) (finding no reliance when insurer's independent

.... ;- ... Ms. Patti Wadsworth November 1, 2001 Page 3 • • investigation reveals false answers). On the other hand, if the' insurer knows of the misrepresentations and, despite this knowledge, issues the policy, the? the insurer cannot later deny the claim on the basis that misrepresentations were made on the

I application. Darby, 998 S.w.2d at 628. Under these circumstances, the insurer is found not to have reli.ed on the representations of the insured. Id..

Intent to deceive, the fourth element of the Mayes test, may be established as a matter of I?w when the applicant warrants the representations to be trJe of there is collision with the insurance agent. Darby, 998 SW.2d at 628; Estat~ of Diggs v. Enterprise Ufe Ins. Co., 646 S.w.2d 573, 576 (Tex.App.--Houston [1st Di~t.J 1982, writ refd n.r.e.). Texas law requires that the insurer plead and prove that the insured made the misrepresentation "willfully with the intent to deceive or to induce the insurance company to issue the policy." Enserch Corp. v. Shand Morahan & Co., 952 F.2d 1485, 1486 (5th Cir.1 992); see also Bates. v. Jackson Nat'l Ufe Ins. Co., 927 F! Supp. 1015,

I 1019-20 (S.D. Texas 1996); Bundick v. National Life & Accident Ins. Co.! 509 F.Supp. 584,585 (W.D.Tex.1980), aff'd, 636 F.2d 311 (5th Cir.1981).

The fifth element, a material misrepresentation in an insurance application, does not defeat recovery if the misrepresentation was made innocently and in good faith. Bates, 927 F. Supp. At 1019-20; Adams v. John Hancock Mut. Life Ins. Co., 797 F.Supp. 563, 566 (W.D.Tex.1 992), aff'd, 49 F.3d 728 (5th Cir.1995); seel Bundick, 509 F.Supp. at 585-86; see Odom v. Insurance Co. of the State of Pa., 455 S.W.2d 195, 199 (Tex.1970). Intent to deceive!, however, cannot be presumed from th~ existence of material misrepresentations alone. In Washington v. Reliable Life Ins. Co., the Texas Supreme Court rejected the insurance company's reliance on the ru[~ of Odom to establish the defense of misrepresentation as a matter of law. 581 S.W.2d 153, 160 (Tex. 1979). The court found that compliance with Odom "does notl automatically establish the defense of misrepresentations, for there is still outstanding the issue of intentional deception, upon which [the insurance company] had the burden of proof." Id. The court acknowledged that Odom denied recovery without requiring a finding of intent, but distinguished that aspect of the case, noting that Odom concerned violations of warranties rather than representations and that there was strong evidence of ~u~.M I In Flowers v. United . Ins. Co. of Am., the court, likewise, held that , an insured's mere knowledge of his or her health condition is insufficient to prove intent to deceive as a matter of law. 807 SW.2d 783,.786 (Tex. App-Houston [14th dist] 1991, no writ). The court found that the insurer's showing that the insured knew about his heart condition and made false statements conceming his health did not prove the insured's intent to deceive. Id. Similarly, in Estate of Diggs, the First Court of Appea[s held that the fact that the insured misrepresented his health condition was insuffici~nt to establish intent to deceive as a matter of law. 646 SW.2d at 575-76. The court I found that, absent a warranty or collusion, an intent to deceive could not be presumed when the insured, who had a long history of heart ailments, made false statiements in his

.. ~. ... Ms. Patti Wadsworth November 1, 2001 Page 4 • • application. Id. at 576. In a later decision,'the same appellate court statJ that "intent to deceive or induce the issuance of an insurance policy can never be 'proved as a matter of law to establish the defense of misrepresentation. Intentional deception must

I be pled and proved as a matter of fact." Cartusciel/o v. Allied Life Ins. Co.! 661 SW.2d 285,288 (Tex. App.-Houston [1't Dist.]1983, no writ).·

In sum Ms. Wadsworth, your company issued a policy to Julio Yanez knowing of the risks involved. At no time did Mr. Yanez hide those facts to your corrtpany. At no time did Mr. Yanez faIl~d to disclose the same, specially given that the application for insurance was not filled out by him (he did not speak enough English to understand its rr:ea~ing). It is our position that you should have explained the terms ofithe policy to him In a language he understoodand/or In a way that was understandable to him, and that your company took a risk knowing .well that Mr. Yanez had had high blood pressure. ' . I The denial of coverage and the manner in which your company (directly and/or through its agent) handled the situation described above constitutes a viblation of the Deceptive Trade Practices - Consumer Protection Act ("OPTA") ana the Texas Insurance Code. Specifically, your company has engaged in unconscionable action'or course of action. In addition, your company, has engaged in the following unfair methods of competition, unfair and deceptive acts or practices, and/or unf~ir settlement practices. ' . I (1) Making ... or causing to be made ...any... statement misrepresenting the terms of any policy issued or to be issued the benefits o~ advantages promised thereby: .. or making any misrepresentation to anylpolicy holder .insured in any company for the purpose of inducing or tending to induce

I such policyholder to lapse, forfeit, or surrender his insurante; Art. 21.21 Tex. Ins. Code, Section 4(1);

(2) Making, publishing, disseminating, circulating or placing before the public causing, directly or indirectly, to be made, published, ~isseminated, circulated placed before the public... in any... way... [a] statement containing ay assertion, representation, or statement with respect to the business of insurance or with respect to any person in the bonducl of his insurance business, which is untrue, deceptive, or misleadihg; Art. 21.21 Tex. Ins. Code, Section 4(2); I (3) With respect to a claim by an insured or beneficiary: (i) misrepresenting to a claimant a material fact or policy prOVision relating to coverage at a issue; and (ii) failing to attempt in good faith to effectuate prompt, fair, and equitable settlement of a claim with respect to WhicH the insurers liability has become reasonably clear; ... [and[ (iv) failing to provide promptly to a policyholder a reasonable explanation of the basis in the

.. ' Ms. Patti Wadsworth November 1. 2001 Page 5

policy. in relation to the facts or applicable law. for the insurers denial of a claim or for the offer of a compromise settlement of a claiM; Art. 21.21 Tex. Ins. COd.e. Section 4(10); . I (4) Mlsrepresentmg an msurance policy by: (a) making an untrue statement of material fact; (b)failing to state a material fact that is neceJsary to make other statements made not misleading. considering the dircumstances under which the statements were made; (cl making a state'ment in such manner as to mislead a reasonably prudent person to a fal~e conclusion of a material fact; ... or (e) failing to disclose any matter required by law to be disclosed, including failure to make disclose in accbrdance with another provision of this code. Art. 21.21 Tex. Ins. Code. Section 4(11);

(5) I Causing confusion or misunderstanding as to the source. sponsorship. approval. or c-ertification of goods or services; Tex. Bus. & Comm. Code. Section 17A6(~);' . I. (6) Representing that...servlces have approval. charactenstics .... uses, benefits" or quantities which they do not have; Tex. Bus. & Comm. Code, Section 17.46(5); .

(7) Representing that any agreement confers or involves rights, remedies, or obligations which it does not have or involve; Tex. Bus. & Comm. Code. Section 17.46(12); I (8) Misrepresenting the authority of a salesman, representative or agent to negotiate the final terms of a consumer transaction; Tex. Bus. & Comm. Code, Section 17.46(14); I . (g) The failure to disclose information conceming: .. services which was known at the time of the transaction if such failure to disclose su6h information was intended to induce the consumer into a transaction ihto which the consumer would not have entered had the information b~en disclosed; Tex. Bus. & Comm. Code. Section 17.46(23). I As consequence of your acts andlor omissions, the Claimants are entitled to recover economic damages from your company. Moreover, it is Claimahts' belief that you and your company acted knowingly and intentionally, as those tem1s are used in Section 17.50(b)(i) of the DTPA. As a consequence of you knowing ~nd intenflonal acts andlor omissions. the Claimants are entitled to recover from you and your company actual damages for mental anguish. as well as additional damages. Therefore, the Claimant is entitled to recover from you total damages of at least $1,000;000.00, which represents The Policy benefits, plus mental anguish suffer~d as a result ~f the w~ongful denial of benefits and. possibly, treble damages. At thiS Juncture. howeyer. Claimants i I

Ms. Patti Wadsworth November 1,2001 Page 6 • • made for payment of The Policy benefits of $1 million. . I only wish to obtain what they believe is rightfully theirs. Accordingly, demand is hereby

In addition, the Claimants are entitled to recover reasonable ani:! necessary attorney fees and costs incurred in prosecuting the claims against y6u and your company. To date, the Claimants have incurred attorney's fees and costs in the amount of $5,000.00, in investigating and preparing the claims against you and yoLr company. In the event that these claims are not resolved without the necessity bf filing and prosecuting a lawsuit against you, the Claimants will incur substantikl additional attorney's fees and costs through the ultimate disposition of the lawsuit. !Accordingly, demand is hereby made for payment of attorney's fees in the amount of $5,000.00. This demand for attorney's fees is being made under the OTPA and undet Chapter 38 of the Texas Civil Practice & Remedies Code on the grounds that ydui company breached its contract with Julio Yanez. I This demand letter is sent to you and your company for the purpose of notifying you that the Claimants have a claim against you and that they wish, in good faith, attempt to resolve these claims. If this matter is not resolved within Sixty (60) days, alease be informed that the Claimants will pursue any legal right available to them against you and your company. I

I hope that we can resolve this issue amicably and without the necessity of asserting other causes of action, including bad faith and breach of contract·, or incurring unnecessary litigation expenses. Please call me if you have any questions. I remain,

Very truly yours,

~VAREZ & NOTZON, L.L,P.

~~Qi;- Patricia O. Alvarez POA:pat

ex: Yanez Family 904 Delwood Laredo, Texas 78045-2119

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EXHIBIT 2

'r6J1/ I'll • CITATION • 2002CVFOOOl82 D1 I' J

THE STATE OF TEXAS

NOTICE TO THE DEFENDANT: 'YOU HAVE BEEN SUED. YOU MAY\ EMPLOY AN ATTORNEY. IF YOU OR YOUR ATTORNEY DO NOT FILE ,~ ~ITT~ ANSWER WITH THE CLERX WHO ISSUED THIS CITATION BY 10:00 :;A.M.. ON. '0-

THE MONDAY NEXT FOLLOWING THE EXPIRATION OF TWENTY DAYS ,~!l- y ~~.,~.~ WERE SERVED THIS <;ITATION AND PETITION, A DEFAULT . MA;t~, B ::' ._ TAKEN AGAINST YOU . , \, ,%'1=" .~~::: TO: OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA. AN AHERIcJ\ :::i)2 ~~~, 12750 MERIT DRIVE STE 1424 ("OLD LINE") BY SERVING ITS '- - d C,%~' DALLAS, TX 75251 ATl'ORNEY FOR SERVICE. MR. Dm" ".~-;" . '"-?-. Defendant(s), in the hereinafter styled and numbered cause: ~ You are hereby commanded to appear before. the 49TH DISTRICT COURT of Webb county, Texas, to be held at the courthouse of said County in the City of Laredo, Webb county, Texas, by filing a written answer to the petition of plaintiff at or before 10 o'clock A.M. of the Monday next after the expiration of 20 days after the date of service hereof, a copy of which accompanies this citation, in cause no.! 2002CVF000182 D1, styled:

Plaintiff (s), RUFINA REYES DE YANEZ' ET AL

VS. Defendant(s), OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA, AN AMERICAN GENERAL COMPANY, ET AL Said Plaintiff's Petition was' filed in said court, by PATRICIA 0 ALVAREZ 415 SHILOH DRIVE LAREDO, TX and filed on 02/11/2002.

WITNESS MANUEL GUTIERREZ, Clerk of the county and District Courts Webb County, Texas. Issued and given under my hand and seal of said Court at office, this 11 day of February, 2002.

C L E R K o F C 0 U R T

MANUEL GUTIERREZ, DISTRICT CLERK '- ,::. 1110 VICTORIA, P.O. BOX 567 .- LAREDO, TEXAS 78042-0667

• " ,

• OFFICER'S RETURN

Came to hand on the (f)-1A- day of ~~. , ~ at f!@ 0' ch".ck a·M. Executed at UV7XO t1J Pt.:04 "' within the count:\, -of' 'O~ fVItUR... r/.e.b;:A....n.c-. i'!t~ ~iL/:l1.{ at o'clock =.M. on the ,;;;l:;2.!,I...day of ~ , 20~ by delivering to the w~thin named _ " IV ~ , each, in person, a true copy of this citation together with the accompanying copy of the petition, having first attached such copy of such petition to such copy of citation and indorsed on such copy of citation the date of delivery.

The distance actually traveled by me in serving such process was miles, and my fees are as follows: Total fee for serving this citation ! -; ,~. ~2l (1&-

To certify which witness my hand officially (Sherjff ----rf)4W- ;t 6~ 0.---- (Constable ~(~~~=~~~______________ county, Texas By_________________________ Deputy.

THE STATE OF TEXAS } COUNTY OF WEBB } Before me, the undersigned authority, on this day personally appeared , Who after being duly sworn, upon oat~h---s~a~i~d~t~h~a~t~a~n~o~t~i~c~e~,-o~f~which the above is a true copy, was by hL________________ ____________________________________ ~

to ____________________________________on the day of ------------------, SWORN TO AND SUBSCRIBED BEFORE ME on the day of to certify which witness my hand and seal of office.

TITLE

.'"

STATE OF TEXAS • § • COUNTY OF WEBB §

BEFORE ME, Ibeundersigned authority, on this day personally appeared

cmW,!- d! 'd.~ , ~ , who after being duly sworn, upon oath said that

a notice, of which the attached is a true and current copy of:

WASSERVEDAT: 18'75l2 m~ D-c . .,J.{,., I If,P-( ~~/;/¥. ~~,d?7JaiL To:D..MI.1fh ~ __--=.-. on this tJte d D tit ~ of

_1.L.....""'-1l.k-:::..::...._ _ _-', 200 I.

Cy)"J <M;'h~ ~ = MARlA L. BEC PRIVATE PROCESS SERVER LAREDO, TEXAS 78043

SWORN TO AND SUBSCRIBE BEFORE ME on this the ;;< b ~ay of ,200 1. To certifY witness my hand and seal of office.

• • ~~:::~;::~ and 3. is Also complete desired. on the reverse so that we can return the card to you . • Attach this can:1 to the back of the maUpiece. or on lhe if space permits. D. Is deliveJy address !f YES, enter delivery addres$ below; 0 No

lO2S95-99-M-1789 , . ..1

EXHIBIT 3

J • .;

• • CAUSE NO. 2002CVF000182 01

RUFINA REYES DE YANEZ, ET AL. § IN THE DIST § Plaintiffs, § § v. § § OLD LINE LIFE INSURANCE COMPANY § OF NORTH AMERJCA, AN AMERICAN § GENERAL COMPA"ry, HARRY BELTRAN § Al\'D SUSANa CASTILLO, JR. DIB/A § B&C FINANCIAL PLAl\'NING, § § Defendants. § 49TH JUDICIAL DISTRICT

DEFENDAl"!T OLD LINE LIFE INSURANCE COMPAl"\'Y OF NORTH AMERICA'S ORJGINAL Al"\'SWER

Defendant Old Line Life Insurance Company of Nonh America ("Old Line") files its

Original Answer as follows:

General Denial

I. Pursuant to Rule 92 of the Texas Ru:es of Civil Procedure. Old Line assms a general

denial to all claims and causes of action assened by Plaintiffs, and demands strict prolf thereof by

a preponderance of the evidence.

Affirmative Defenses

2. Plaintiffs' claims are barred, in whole or in pan, by Plaintiffs' failure 10 perfonn all

conditions precedent under the tenus of the policy at issue.

3. Plaintiffs' claims are ban'ed, in whole or in pan, because Julio AI1 Yanez' s II I'O

application for life insurance contained fraudulent misrepresentations, as well as intentional failures

to disclose facts regarding his medical histDI)' and treatment by physicians.

" •

, 4. • • Plaintiffs' claims and allegations of "bad faith" are ban'ed, in whole orin part, because

Old Line's liability to Plaintiffs was not reasonably clear. Accordingly, Old Line had la reasonable

basis for denying Plaintiffs' claim. I 5. Plaintiffs' claims are barred, in whole or in part, because the policy sued upon by

Plaintiffs was not in effect on the date of Plaintiffs' loss.

ConClusion

Defendant Old Line Life Insurance Company of America requests that upon trial or other I final hearing ofthis maner, Plaintiffs take nothing, that judgment be entered against Plaintiffs, and

that the Coun grant such other and fm1her relief to which Defendant may be justly Jtitled.

Respectfully submined,

BRACEWELL & PATTERSON, L.LP.

Amy B. Boyea Slale BarNo. 24026910

South Tower Pennzoil Place, L.L.P. 711 Louisiana St., Ste. 2900 Houston, Texas 77002-2781 Telephone: (713) 223-2900 Telecopy: (713) 221-1212

JONES & GoNZALEZ, P.C ,

~Cu~.' Q"6_~lli By: _ _ _ _ _--::/_ ~---'~___ CJT'--6--,-.::::...... 1'.1r. Adan A. Gonzalez Slale Bar No. 08122350

\ \

1 • • 5601 San Dario Avenue, Suite 5 Laredo, Texas 78041-3011 Telephone: (956) 723-5575 Facsimile: (956) 723-2025

ATIOR.,.,\'EYS FOR DEFEl\'DANT, OLl'), LIl\'E UFE fNSURANCE COMPANY OF NORTH AMERlCA

CERTIFICA TE OF SERVICE

I hereby cenify that a true and correct copy of the foregoing document has been fOlwarded on this ~ day of March, 2002 to the following:

Patricia O. Alyarez Iv! r. Gary C. Crapster Elisamar Soro Strasburger & Price, LLP Alvarez & Notzon, L.L.P. 90 I Main Street, Suite 4300 415 Shiloh Drive Dallas, Texas 75202 Laredo, Texas 78045

-3-

EXHIBIT 4

------- - - ---- ------ --- - - - ----~--

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb County Courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG

===========================================================-================== CASE NUMBER 2002CVF000182 D1 PLAINTIFF REYES DE YANEZ,RUFINA" 8.S.# . XXX-XX-XXXX D.O.B. ADDRESS .

DRIVER LICENSE #

PLAINTIFFS ATTORNEY ALVAREZ,PATRICIA,O, PHONE NUMBER: OOO-OOO-OC ADDRESS . 415 SHILOH DRIVE STE. A LAREDO TX 78045

PLAINTIFF ESTATE OF JULIO ARTU", S.S.# . XXX-XX-XXXX D.O.B. ADDRESS .

DRIVER LICENSE #

PLAINTIFF YANEZ-REYES, JULIO, ARTURO , S. S. # . XXX-XX-XXXX D.O.B. ADDRESS .

DRIVER LICENSE # PLAINTIFF YANEZ~REYES,MARIA,ISABEL,

S.S.# . XXX-XX-XXXX D.O.B. ADDRESS .

DRIVER LICENSE #

PLAINTIFF YANEZ-REYEStRICARDO,1 S.S.# . XXX-XX-XXXX D.O.B. ADDRESS .

DRIVER LICENSE # VS.

DEFENDANT NAME OLD LINE LIFE INSURA", S. S. # . XXX-XX-XXXX D.O.B. ADDRESS 12750 MERIT DRIVE STE 1424 DALLAS TX 75251 DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: OOO-OOO-OC ADDRESS . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANT NAME BELTRAN,HARRY" S.S.# . XXX-XX-XXXX D.O.B.

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb County Courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG

~===================================================== ======================== CASE NUMBER 2002CVF000182 Dl ADDRESS 5918 MCPHERSON STE 6 LAREDO TX 78041 DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: ODD-ODD-DC ADDRESS . . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANT NAME CASTILLO,SUSANO"JR S. S. # . XXX-XX-XXXX D.O.B. ADDRESS 5918 MCPHERSON STE 6 LAREDO TX 78041 DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: ODD-ODD-DC ADDRESS . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANT NAME D/B/A B&C FINANCIAL", S. S. # . XXX-XX-XXXX D.O.B. ADDRESS

DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: ODD-ODD-DC ADDRESS . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANT NAME FORTIS INSURANCE COM", S.S.# . OO~-OO-OOOO D.O.B. ADDRESS 901 MAIN STREET DALLAS TX 75202 DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: ODD-ODD-DC ADDRESS . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANTS ATTORNEY MORENO,LARRY" PHONE NUMBER: OOO-OOO-OC

- - - - . - - .. -~ ...

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb county courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG

============================================================================== CASE NUMBER 2002CVF000182 D1 ADDRESS . 1508 S MCCOLL EDINBURG TX 78539 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANT NAME FORTIS INVESTORS INC", S.S.# . XXX-XX-XXXX D.O.B. ADDRESS 500 BIELENBERG DR. WOODBURY MN 55125 DRIVERS LICENSE # CASE STATUS . Disposed STATUS DATE 4/20/2005 CASE DISPOSITION FinalJudgm DISPOSITION DATE 4/20/2005

DEFENDANTS ATTORNEY BOYEA,AMY,B, PHONE NUMBER: ODD-ODD-DC ADDRESS . 711 LOUISIANA ST STE 290 HOUSTON TX 770022781 COURT APPOINTED NO ATTORNEY PRESENT

DEFENDANTS ATTORNEY MORENO, LARRY, , PHONE NUMBER: ODD-ODD-DC ADDRESS . 1508 S MCCOLL EDINBURG TX 78539 COURT APPOINTED NO ATTORNEY PRESENT

ENTRY/FILING DATE 2/11/2002

JUDGE . M. Flores HEARING TYPE ADMIN. TERM. CODE IND. TERM. CODE .

COMPLAINT . *IMG* ACCOUNTS/CONTRACTS/NOTES (SUIT ON INSURANCE P COMPLAINT DATE 2/11/2002 COMPLAINT AMOUNT INTEREST DATE . INTEREST RATE REIMBURSE COSTS NO COUNTER CLAIM ORI# COUNTER CLAIM CASE, TRUSTEESHIP ORI# TRUSTEESHIP CASE GARNISHMENT ORI# GARNISHMENT CASE

ACTIVITY DATE ACTIVITY DESCRIPTION ACTIVITY Tl

2/11/2002 Complaint Complaint *IMG* ACCOUNTS/CONTRACTS/NOTES(SUIT ON INSURANCE POLICY) Jury Fee Jury Fee JURY DEMAND PAID BY ATTY PATRICIA O. ALVAREZ.AG. Citation Citation SIX CITATIONS ISSUED AND READY FOR PICK UP.AG.

2/13/2002 Filing Papers File Paprs RETURN OF CITATION EXECUTED AS TO HARRY BELTRAN DOS FEB. 12, 2002 (PF) Filing Papers File paprs RETURN OF CITATION EXECUTED AS TO SUSANO CASTILLO, JR. DOS FEB. 12, 2002 (PF)

----+-~~--- ---

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb County Courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG

====================================================== =======================~ CASE NUMBER : 2002CVF000182 Dl

2/26/2002 Returns Returns RETURN OF CITATION AS TO: OLD LINE LIFE INSURANCE CO., OF AMERICA AN AMERICAN GENERAL COMPANY, DOS: BY US MAIL RETURN RECIEPT REQUESTED FEB. 20TH 2002. (CM)

3/15/2002 Answer Answer *IMG* DEFENDANT OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA'S ORIGINAL ANSWER. (CM)

3/18/2002 Answer Answer GENERAL DENIAL. (em) GENERAL DENIAL. (HARRY BELTRAN.>}em

3/22/2002 Answer Answer ORIGINAL ANSWER OF DEFENDANT HARRY BELTRAN ADN SUSANO CASTILLO, JR., DBA FINANCIAL PLANNING. (CM)

4/01/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY ( REQUEST FOR DISCLOSURE TO DEFENDANTS.}CM

4/12/2002 Filing Papers File paprs NOTICE OF INTENTION TO TAKE ORAL DEPOSITION OF AMELIA DUNN WITH SUBPOENA DUCES TECUM. (CM) NOTICE OF INTENTION TO TAKE ORAL DEPOSITION OF JAMES DUNN WITH SUBPOENA DUCES TECUM. (CM) NOTICE OF FILING. (CM)

4/23/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY (PF)

5/01/2002 Filing Papers File paprs NOTICE OF INTENTION TO TAKE ORAL DEPOSITION OF STEVE LOU JENSEN WITH SUBPOENA DUCES TECUM. (CM)

5/14/2002 Filing Papers File paprs 1ST AMENDED NOTICE OF INTENTION TO TAKE ORAL DEPOSITION OF STEVE LOU JENSEN WITH SUBPOENA DUCES TECUM. (CM)

5/15/2002 Filing Papers File paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM)

5/17/2002 Filing Papers File paprs CERTIFICATE OF WRITTEN DISCOVERY (PF)

6/03/2002 Filing Papers File paprs PLAINTIFFS' FIRST AMENDED ORIGINAL PETITION (PF) Filing Papers File paprs CERTIFICATE OF WRITTEN DISCOVERY (PF) Filing Papers File paprs

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb County Courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG

============================================================================== CASE NUMBER . : 2002CVF000182 D1 CERTIFICATE OF WRITTEN DISCOVERY (PF)

6/04/2002 Filing Papers File Paprs NOTICE OF FILING. (RULE 11 AGREEMENT)CM

6/06/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM)

6/12/2002 Filing Papers File Paprs PLAINTIFF'S SPECIAL EXCEPTIONS TO OLD LIFE INSURANCE COMPANY'S ORIGINAL ANSWER; PLAINTIFF'S MOTION TO COMPEL HARRY BELTRAN TO RESPOND TO REQUEST FOR DISCLOSURE, WITH FIAT FOR SETTING AND ORDER. (CM)

7/01/2002 Filing Papers File Paprs RULE 11 AGREEMENT (ATTY. AMY B. BOYEA) (PF) Filing Papers File Paprs DEFENDANT OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA'S FIRST AMENDED ANSWER (PF)

7/03/2002 Filing Papers .File paprs PLAINTIFFS' SECOND AMENDED ORIGINAL PETITION (PF)

7/09/2002 Filing Papers File paprs NOTICE OF FILING (PF)

7/10/2002 Filing Papers File Paprs RULE 11 AGREEMENT (ATTY. AMY B. BOYEA) (PF) Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY (PF)

7/17/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM) CERTIFICATE OF WRITTEN DISCOVERY. (CM)

7/19/2002 Filing papers File paprs CERTIFICATE TO THE ORAL DEPOSITION OF JULIO ARTURO YANES-REYES MAY 23, 2002 (PF)

7/22/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY (PF)

7/24/2002 Filing Papers File Paprs CERTIFICATE TO THE ORAL DEPOSITION OF RICARDO YANEZ-REYES MAY 23, 2002. (CM) Citation Citation FOUR (4) CITATIONS ISSUED BY CERTIFIED MAIL (FORTIS INSURANCE CO. AND FORTIS INVESTORS INC.) (PF)

7/25/2002 Filing papers File Paprs NOTICE OF INTENTION TO TAKE ORAL AND VIDEO DEPOSITION OF JOHN O'NEILL GREEN . (CM)

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~~==================================================== ======================== CASE NUMBER : 2002CVF000182 D1

8/01/2002 Returns Returns RETURN RECIEPT REQUESTED AS TO: ?ORTIS INVESTORS, INC, BY SERVING: ERIN FENQEL, DOS: JULY 29TH 2002. (CM) Filing Papers File Paprs CERTIFICATE TO THE ORAL DEPOSITION OF RUFINA REYES DE YANES MAY 22,02 (DG) Filing Papers File Paprs CERTIFICATE TO THE DEPOSITION OF RUFINA REYES DE YANES 5/23/02 (DG)

8/02/2002 Returns Returns RETURN RECIEPT REQUESTED AS TO: FORTIS INSURANCE CO., BY SEVING ANDREW G. JUBINSKSY, SIGNED BY CORY SCHULTZ, DOS: JULY 29TH 2002. (CM)

8/07/2002 Filing Papers File Paprs RETURN OF SUBPOENA, AS TO: JOHN O'NEILL GREEN, DOS: JULY 25TH 2002. (CM)

8/16/2002 Order Order FIAT: PLTS. MOTION FOR DOCKET CONTROL CONFERENCE, SET FOR HEARING ON: SEPT 3RD 2002, AT 8AM., NOTICES OF SETTING FAXED TO ATTORNEYS GARY CRAPSTER, ADRIAN A. GONZALEZ, THOMAS F. A. HETHERINGTON AND AMY B. BOYEA. (CM) Court Case Assignment Case Assgn Court date/time: 9/03/2002 8:00:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as DockCtlCof Hearing Type code 115: DockCtlCof

8/19/2002 Filing Papers File Paprs DEFENDANT FORTIS INVESTORS, INC. 'S ORIGINAL ANSWER; DEFENDANT FORTIS INSURANCE COMPANY'S ORIGINAL ANSWER. (CM)

8/21/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM)

9/05/2002 Filing Papers File Paprs NOTICE OF FILING. (CM)

9/11/2002 Filing Papers File Paprs NOTICE OF CANCELLATION OF NOTICES OF INTENTION TO TAKE ORAL DEPOSITION OF NEIL HASTY AND PATTI WADSWORTH CURRENTLY SET FOR SEPT. 12, 2002, PLAINTIFFS' REQUEST FOR OLD LINE LIFE INSURANCE COMPANY OF AMERICA'S PRIVILEGE LOG. (CM)

9/12/2002 Filing Papers File paprs REPORTER'S CERTIFICATION ORAL DEPOSITION OF HARRY BELTRAN, MAY 21ST 2002 VOLUME 1. (CM)

9/17/2002 Filing Papers File Paprs

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============================================================================== CASE NUMBER . : 2002CVF000182 D1 PLAINTIFF'S MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY TO RESPON TO PLAINTIFF'S FIRST SET OF INTERROGATORIES, REQUESTS FOR PRODUCTION AND REQUESTS FOR PRODUCTION, AND REQUESTS FOR ADMISSIONS AND SECOND SET OF REQUESTS FOR PRODUCTION AND FOR SANCTIONS AGAINST OLD LINE AND/OR ITS ATTORNEYS. (CM)

9/19/2002 Filing Papers File Paprs PLAINTIFFS' CERTIFICATE OF WRITTEN DISCOVERY; (PLAINTIFFS' SECOND SET OF REQUESTS FOR ADMISSION ( NOS. 2-54) TO DEFENDANT, OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA, AN AMERICAN GENERAL COMPANY) PLAINTIFFS' MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY TO RESPOND TO PLAINTFFS' FOURTH SET OF REQUESTS FOR PRODUCTION; WITH FIAT FOR SETTING. (CM)

9/24/2002 Order Order PLAINTIFF'S MOTION TO COMPEL HARRY BELTRAN TO RESPOND TO REQUEST FOR DISCLOSURE SET FOR HEARING ON: OCTOBER 1ST 2002, AT 8AM,PLAINTIFF'S MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA, AND FOR SANCTIONS, PLAINTIFF'S SPECIAL EXCEPTIONS TO OLD LINE LIFE INS. COMPANY'S ORIGINAL ANSWER, PLAINTIFF'S MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA TO RESPOND TO THEIR FOURTH SET OF REQUESTS FOR PRODUCTION, SET FOR HEARING ON: OCT. 1ST 2002, AT 8A.M., NOTICES OF SETTING FAXED TO ATTORNEYS PATRCIA O. ALVAREZ, GARY CRAPSTE R, THOMAS F. A. HETHERINGTON, LARRY MORENO, ADAN GONZALEZ. (CM) Court Case Assignment Case Assgn Court date/time: 10/01/2002 8:00:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Mtn/Compe1 Hearing Type code 66: Mtn/Compel Court Case Assignment Case Assgn Court date/time: 10/01/2002 8:01:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Motions Hearing Type code 37: Motions Order Order PRE TRIAL GUIDELINE ORDER FORM, JURY TRIAL SET FOR: MAY 19TH 2003, WITH FINAL PRE TRIAL SET FOR MAY 15TH 2003 AT 8AM. (CM) Court Case Assignment Case Assgn Court date/time: 5/19/2003 8:00:00 Court date/time: 5/15/2003 8:00:00 Assignment of court date/time. Assignment of court date/time. Status entered as Open Status entered as Open Hearing Hearing Hearing Type entered as Jury Trial Hearing Type entered as Pre-Trial

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============================================================================== CASE NUMBER . : 2002CVF000182 D1 Hearing Type code 4: Jury Trial Hearing Type code 2: Pre-Trial

9/30/2002 Filing Papers File Paprs PLAINTIFFS' THIRD AMENDED PETITION. (CM) NOTICE OF FILING ( SEPTEMBER 27, 2002 PERTAINING TO MOTIONS TO COMPEL AND SPECIAL EXCEPTIONS.) NOTICE OF FILING. ( SEPT. 27, 2002, PERTAINING TO ORIGINAL POLICY, FORTIS DISC. D/L, INSPECTION OF POLICY. )CM

10/01/2002 Filing Papers File Paprs CASE CALLED JUDGE FLORES PRESIDING. C.R. B. HILL, ATTORNEYS FOR PLTS. AND DEFENDANTS FILED A RULE 11 AGREEMENT, NO LONGER NEEDING THE HEARING SET FOR THIS MORNING. (CM) Filing Papers File Paprs RULE 11 AGREEMENT. (CM) CERTIFICATE OF WRITTEN DISCOVERY. (CM) Filing Papers File Paprs PLAINTIFF'S FOURTH AMENDED ORIGINAL PETITION. (CM)

10/03/2002 Filing Papers File paprs NOTICE OF FILING ( DEPOSITION NOTICE OF OLD LINE LIFE. )CM

10/04/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM)

10/09/2002 Filing Papers File Paprs DEFENDANT OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA'S SECOND AMENDED ANSWER. (CM)

10/21/2002 Filing Papers File Paprs FORTIS INVESTORS, INC. 'S AND FORTIS INSURANCE COMPANY'S SPECIAL EXCEPTIONS TO PLAINTIFFS' FOURTH AMENDED ORIGINAL PETITION. (CM) (WITH FIAT FOR SETTING ATTACHED.)CM

10/31/2002 Order Order ORDER SETTING HEARING (FORTIS INS. CO. 'S AND FORTIS INVESTORS INC. 'S SPECIAL EXCEPTIONS TO PLAINTIFFS FOURTH AMENDED ORIGINAL PETITION SET FOR NOV. 12, 2002 AT 8:00 A.M.) NOTICE FAXED TO ADRIAN A. GONZALEZ, LARRY MORENO, AMY BOYEA, GARY CRAPSTER AND PATRICIA ALVAREZ (PF)

11/01/2002 Court Case Assignment Case Assgn Court date/time: 11/12/2002 8:00:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Spcl/excpt Hearing Type code 65: Spcl/excpt

11/05/2002 Filing Papers File Paprs PLAINTIFFS' MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY TO

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============================================================================== CASE NUMBER . : 2002CVF000182 D1 PRODUCE ORIGINAL POLICY OF INSURANCE FOR SAFEKEEOING BY THE JUDGE OF THE 49TH DISTRICT COURT (WITH FIAT ATTACHED) (PF)

11/06/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM)

11/08/2002 Order Order FIAT: PLTS. MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA TO PRODUCE THE ORIGINAL OF TERM LIFE POLICY NO. MM0112648, SET FOR NOV. 12TH 2002, AT 8AM, NOTICES OF SETTING FAXED TO ATTORNEYS PATRICIA O. ALVAREZ, GARY CRAPPSTER, THOMAS F. A. HETHERINGTON LARRY MORENO, AD AN GONZALEZ. (CM) Court Case Assignment Case Assgn Court date/time: 11/12/2002 8:00:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Mtn/Compel Hearing Type code 66: Mtn/Compel Filing Papers File Paprs DEFENDANT OLD LINE LIFE INSURANCE COMPANY'S RESPONSE TO PLAINTIFF'S MOTION TO COMPEL OLD LINE INSURANCE COMPANY TO PRODUCE ORIGINAL POLICY OF INSURANCE FOR SAFEKEEPING BY JUDGE OF THE 49TH DISTRICT COURT. (CM) (WITH PROPOSED ORDER. )CM

11/12/2002 Filing Papers File Paprs PLAINTIFFS' CERTIFICATE OF WRITTEN DISCOVERY; NOTICE OF APPEARANCE OF LEAD COUNSEL; NOTICE OF FILING. (CM) Filing Papers File Paprs CASE CALLED JUDGE FLORES PRESIDING. C.R. B. HILL, ATTORNEY FOR PLTS. MR. AD AN GONZALEZ, FOR DEFENDANTS PATRICIA ALVAREZ, AND GARY C. CRAPSTER, HEARING ON: DEFTS. FORTIS INVESTORS INC. 'S AND FORTIS INSURANCE COMPANY SPECIAL EXCEPTIONS TO PLTS. FOURTH AMENDED ORIGINAL PETITION AND PLTS. MOTION TO COMPEL, ARGUEMENTS HEARD BY THE COURT, AND ORDERED PARTIES TO DEPOSIT THE CERTIFICATE OF INS. WITH THE COURT, AND DRAFT ORDER AND PRESENT SUCH TO THE COURT FOR SIGNATURE. (CM)

11/22/2002 Filing Papers File Paprs MOTION FOR ENTRY OF ORDER. (NO FIAT FOR SETTING ATTACHED. ) CM

11/26/2002 Filing Papers File paprs CASE CALLED JUDGE FLORES PRESIDING. C.R. CHUCK VELA, ATTORNEY FOR PLTS. MRS. PATRICIA ALVAREZ, FOR DEFENDANT OLD LINE LIFE INSURANCE COMPANY, HEARING ON; PLTS. MOTION FOR ENTRY OF ORDER GRANTING THEIR MOTION TO COMPEL, MOTION IS GRANTED, AGREEMENT READ INTO THE RECORD WITH AN INCORPORATED WRITING BY ATTORNEY AD AN GONZALEZ. (CM) ORDER SIGNED IN OPEN COURT, COPY OF ORDER HAND DELIVERED TO ATTORNEYS IN OPEN COURT. (CM)

12/02/2002 Filing Papers File Paprs

WEB B C 0 U N T Y J U D I C I A L S Y S T E M CIVIL CASE DOCKETS Webb County Courts - Live PAGE DATE 7/09/15 MV0260 TIME 14:09:44 DCCMG ============================================================================== CASE NUMBER . : 2002CVF000182 D1 PLAINTIFF'S CERTIFICATE OF WRITTEN DISCOVERY. (CM)

12/06/2002 Filing Papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY. (CM) PLAINTIFFS' FIFTH AMENDED PETITION. (CM)

1/10/2003 Filing Papers File Paprs PLAINTIFFS' MOTION TO COMPEL DEFENDANT, OLD LINE LIFE INSURANCE COM PAN TO RESPOND TO PLAINTIFFS' FIFTH SET OF REQUESTS FOR PRODUCTION (48-49) AND FOR SANCTIONS AGAINST OLD LINE AND/OR ITS ATTORNEYS. (CM)

1/16/2003 Filing Papers File Paprs PLAINTIFFS' DESIGNATION OF EXPERT WITNESSES. (CM)

2/20/2003 Filing Papers File Paprs NOTICE OF INTENTION TO TAKE DEPOSITION BY WRITTEN QUESTIONS. (CM) DIRECT QUESTIONS TO BE PROPOUNDED TO THE WITNESS. (CM)

2/27/2003 Filing Papers File Paprs FORTIS INSURANCE COMPANY'S AND FORTIS INVESTORS, INC. 'S DESIGNATION OF EXPERTS. (CM) Order Order FIAT: PLAINTIFF'S MOTION TO COMPEL OLD LINE LIFE INSURANCE COMPANY OF NORTH AMERICA AND FOR SANCTIONS, SET FOR FEB. 28TH 2003, AT 8AM., NOTICES OF SETTING FAXED TO ATTORNEY RENE BARRIENTOS, PATRICIA OL ALVAREZ, GARY CRAPSTER, LARRY MORENO, AD AN GONZALEZ, AS PER COURT COORDINATOR, HEARING CANCELLED NOTICES WERE NOT FAXED ON TIME, ATTYS WILL RESUMITT NEW FIAT. (CM)

2/28/2003 Filing Papers File Paprs FORTIS INVESTOR'S AND FORTIS INSCRANCE COMPANY'S MOTION FOR CONT INUANCE . (CM) WITH ORDER FOR SETTING ATTACHED. (CM)

3/21/2003 Filing Papers File Paprs DEFENDANT OLD LINE LIFE INSURANCE COMPANY'S MOTION TO STRIKE PLAINTIFF EXPERT WITNESSES; AND ORDER. (NO FIAT FOR SETTING ATTACHED.)CM

3/25/2003 Filing Papers File Paprs FORTIS INSURANCE COMPANY AND FORTIS INVESTORS, INC'S MOTION TO PLAINTIFFS' EXPERT DESIGNATION AND ROBINSON CHALLENGE. (CM) WITH ORDER SETTING HEARING ATTACHED. (CM)

3/31/2003 Filing Papers File Paprs DEFENDANT OLD LINE LIFE INSURANCE COMPANY'S RESPONSE TO PLAINTIFFS' MOTION TO COMPEL AND FOR SANCTIONS. (CM)

5/l3/2003 Order Order ORDER GRANTING FORTIS INSURANCE COMPANY'S MOTION FOR CONTIUNANCE. ( THE TRIAL DATE OF MAY 19TH 2003, BE RESET TO A LATER DATE TO BE DETERMINED BY THE COURT. )CM

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============================================================================== CASE NUMBER 2002CVF000182 D1

7/07/2003 Filing Papers File Paprs PLAINTIFF'S MOTION TO COMPEL RESPONSES TO THIRD REQUEST FOR PRODUCTION AGAINST FORTIS INSURANCE COMPANY AND FORTIS INVESTORS, INC. (CM) CERTIFICATE OF WRITTEN DISCOVERY. (CM) WITH FIAT FOR SETTING ATTACHED. (CM)

7/21/2003 Filing Papers File Paprs FIAT: PLTS. MOTION TO COMPEL PRODUCTION FILED BY MOVANTS, SET FOR HEARING ON JULY 23RD 2003, AT SAM., NOTICES OF SETTING FAXED TO ATTYS GARY C. CROPSTER, LARRY MORENO, PATRICIA O. ALVAREZ, AMY B. BOGEA. (CM) Court Case Assignment Case Assgn Court date/time: 7/23/2003 S:OO Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Mtn/Compel Hearing Type code 66: Mtn/Compel Filing Papers File Paprs NOTICE OF INTENTION TO TAKE DEPOSITION BY WRITTEN QUESTIONS. (CM)

7/23/2003 Filing Papers File Paprs CASE CALLED JUDGE FLORES PRESIDING. C.R. B. HILL, ATTORNEY FOR DEFENDANT'S MR. ADAN GONZALEZ, HEARING ON: PLTS. MOTION TO COMPEL PRODUCTION, MR. GONZALEZ ANNOUNCED THAT PARTIES HAVE REACHED AN AGREEMENT ON MOTION TO COMPEL ORDER TO BE SUBMITTED FOR THE COURT. (CM) Order Order ORDER GRANTING MOTION TO COMPEL. (CM) COpy OF ORDER MAILED TO RENE R. BARRIENTIOS, AND LARRY MORENO. (em)

S/04/2003 Filing Papers File Paprs AMENDED NOTICE OF INTENTION TO TAKE DEPOSITION BY WRITTEN QUESTIONS. (CM)

8/29/2003 Filing Papers File Paprs CERTIFICATION NOTICE OF DELIVERY. (CM)

12/12/2003 Filing Papers File paprs CERTIICATION/NOTICE OF DELIVERY. (CM) DEPOSITION SUBPOENA TO TESTIFY OR PRODUCE DOCUMENTS OR THINGS. (CUSTODI AN OF RECORDS FOR: GARZA-GONGORA, DR. ARTURO.)CM

1/20/2004 Filing Papers File Paprs CERTIFICATION NOTICE OF .DELIVERY. (CM) DEPOSITION SUBPOENA TO TESTIFY OR PRODUCE DOCUMENTS OR THINGS. (CM)

3/04/2004 Filing Papers File paprs DOCKET CONTROL ORDER (SIGNED MARCH 1,2004) (FINAL PRE-TRIAL SEPT. 23, 2004 AND TRIAL FOR SEPT. 27, 2004 AT 8:00 A.M.) COpy MAILED TO RENE BARRIENTOS, AMY B. BOYEA, GARY C. CRAPSTER, LARRY MORENO AND PATRICIA

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============================================================================== CASE NUMBER . : 2002CVF000182 Dl A. CALDER (PF)

6/28/2004 Filing Papers File Paprs PLAINTIFF'S SUPPLEMENTAL DESIGNATION OF EXPERT WITNESSES. (CM)

7/29/2004 Filing Papers File paprs CERTIFICATE OF DISCOVERY. (CM)

8/24/2004 Filing Papers File Paprs INFORMAL HEARING HELD IN CHAMBERS WITH ATTORNEY ADAN GONZALEZ, AND MR. BARRIENTOS, HEARING ON MOTION FOR CONTINUANCE, MOTION IS GRANTED OF TRIAL SETTING ORIGINALLY SET FOR SEPT. 27TH 2004, PARTIES TO SUBMITT NEW GUIDELINE ORDER FORM TO THE COURT, BY SEPT. 9TH 2004 (CM) Order Order ORDER DEFENDANT'S MOTION FOR CONTINUANCE, OF THE TRIAL SET FOR SEPTEMBER 27TH 2004 IS HEREBY RESET.)CM

10/12/2004 Filing Papers File Paprs REPORTER'S CERTIFICATION ORAL DEPOSITION OF AMELIA DUNN MAY 21, 2002 VOLUME 1. (CM)

10/19/2004 Order Order AMENDED SCHEDULING ORDER. ( JURY TRIAL SET FOR MARCH 21ST 2005, WITH FINAL PRE TRIAL SET FOR MARCH 17TH 2005 AT 8AM.)CM Court Case Assignment Case Assgn Court date/time: 3/21/2005 8:00 Court date/time: 3/17/2005 8:00 Assignment of court date/time. Assignment of court date/time. Status entered as Open Status entered as Open Hearing Hearing Hearing Type entered as Jury Trial Hearing Type entered as pre-Trial Hearing Type code 4: Jury Trial Hearing Type code 2: Pre-Trial

11/08/2004 Filing Papers File Paprs LETTER FROM LAW OFFICES OF RENE R. BARRIENTOS, DATED: NOV. STH 2004 TO THE COURT: RULE 11 AGREEMENT, CONVERSATION ON OCT. 26TH 2004, PART I ES AGREED TO PASS THE MARCH 21ST 2005 TRIAL DATE AND RESET THIS MATTER FOR THE NEXT AVAILABLE DATE OF APRIL 21ST 2005 AT SAM .. (CM) Court Case Assignment Case Assgn Court date/time: 4/21/2005 8:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Jury Trial Hearing Type code 4: Jury Trial

ll/12/2004 Filing Papers File paprs

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CASE NUMBER . : 2002CVF000182 Dl RULE 11 AGREEMENT. (CM)

1/04/2005 Filing Papers File Paprs MOTION FOR INSPECTION AND FORENSIC TESTING OF ORIGINAL LIFE INSURANCE POLICY (WITH FIAT ATTACHED) (PF)

1/05/2005 Filing Papers File Paprs FIAT (PLAINTIFFS MOTION FOR INSPECTION AND FORENSIC TESTING OF LIFE ORIGINAL LIFE INSURANCE POLICY SET FOR JAN. 7, 2005 AT 8:00 A.M.) NOTICE FAXED TO LARRY MORENO, ADAN A. GONZALEZ, GARY CRAPSTER, PATRICIA A. ALVAREZ, AMY B. BOGEN AND RENE R. BARRIENTOS (PF) Court Case Assignment Case Assgn Court date/time: 1/07/2005 8:00 Assignment of court date/time. Status entered as Open Hearing Hearing Hearing Type entered as Fiat Hearing Type code 51: Fiat

1/07/2005 Hearing Hearing CASE CALLED. HEARING CANCELLED LETTER FAXED TO IRMA GARCIA (PF) Filing Papers File Paprs MOTION FOR INSPECTION AND FORENSIC TESTING OF ORIGINAL LIFE INSURANCE POLICY (WITH FIAT ATTACHED) (PF)

1/21/2005 Filing Papers File Paprs PLAINTIFFS' SECOND SUPPLEMENTAL DESIGNATION OF EXPERT WITNESSES. (FILED BY ATTY RENE R. BARRIENTOS, PATRICIA O. ALVAREZ, ELISAMAR SOTO FOR THE PLTS') RZ Filing Papers File Paprs RULE 11 AGREEMENT (FILED BY ATTY RENE R. BARRIENTOS, PATRICIA ALVAREZ, ELISAMAR SOTO.) RZ

1/31/2005 Filing papers File Paprs CERTIFICATE OF WRITTEN DISCOVERY (PF)

2/17/2005 Filing Papers File Paprs NOTICE OF INTENTION TO TAKE ORAL DEPOSITION OF MARIA ISABEL YANEZ- REYES (FILED BY ATTY THOMAS F. A. HETHERINGTON) RZ

4/15/2005 Filing Papers File Paprs PLAINTIFFS' MOTION FOR DISMISSAL AND TAKE NOTHING JUDGMENT (WITHOUT AN ORDER ATTACHED) RZ

4/20/2005 Court Case Assignment Case Assgn Court date/time: 4/21/2005 8:00 Status changed from Open to Cance Filing Papers File Paprs *IMG* PLAINTIFFS' MOTION FOR DISMISSAL AND TAKE NOTHING JUDGMENT FILED BY ATTY RENE R. BARRIENTOS AND PATRICIA O. ALVAREZ. RZ SENT TO SCAN.

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============================================================================== CASE NUMBER . : 2002CVF000182 D1 Filing Papers File paprs *IMG* TAKE NOTHING JUDGMENT SIGNED 4/18/2005. (AS TO ALL) COPY OF THE JUDGMENT SENT VIA REG. MAIL AS TO RENE BARRIENTOS ATTY PATRICIA O. ALVAREZ, ATTY LANEY M. VAZQUEZ, ATTY GARY CRAPSTER, AND ATTY LARRY MORENO. RZ SENT TO SCAN.

4/21/2005 Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For OLD LINE LIFE INSURA Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For HARRY BELTRAN Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For SUSANO CASTILLO JR Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For D/B/A B&C FINANCIAL Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For FORTIS INSURANCE COM Disposition Dispositn Disposition entered as 495. Disposition code 495: FinalJudgm For FORTIS INVESTORS INC