Plaintiffs Fourth Amended Petition - Texas State Securities Board

ii.
iii.
iv.
premiums or terms of the life insurance policies. Kiesling Porter agreed to
rely solely upon information, instructions and directions from Defendant
Retirement Value and is not obligated to make any independent inquiries
as to the use of investor funds when paying escrow and administrative
fees, commissions, purchase prices for policies, policy premiums, and
distributions of death benefits,
Kiesling Porter is only obligated to follow Retirement Value’s instructions
for the use of investor funds even if it received conflicting instructions
from any third party, including any investor,
Kiesling Porter owes no duty to anyone other than Defendant Retirement
Value except for willful misconduct,
The Escrow Agreement specifically excludes investors and licensees as
parties or third-party beneficiaries to the agreement,
v. Kiesling Porter has no legal obligation, ability or wherewithal to litigate
any contestable matters that relate to the life insurance policies or the
payment of claims thereon,
vi.
vii.
viii.
ix.
Defendant Retirement Value is responsible to litigate any contestable
matters that relate to the life insurance policies or the payment of claims
thereon,
Defendant Retirement Value does not maintain sufficient capital, funds or
other assets to pay for any litigation involving contestable matters relating
to the life insurance policies or payments of claims thereon,
Any audit or bond requested of Kiesling Porter would be paid for by funds
from Defendant Retirement Value, and
Kiesling Porter is not required to continue to serve as the escrow agent and
can relinquish its duties by canceling the Escrow Agreement at any time.
D. Information relating to the legal effect and consequence of Kiesling Porter being
named only as a beneficiary, but not as an “irrevocable” beneficiary of the life
insurance policies offered in the RSLIP Program, such as:
i. Investors cannot be “irrevocable co-beneficiaries” if Kiesling Porter is not
an irrevocable beneficiary,
ii.
Kiesling Porter owes no duty to investors as “irrevocable co-beneficiaries”
pursuant to the terms of its Escrow Agreement with Defendant Retirement
Value,
State of Texas v. Retirement Value, LLC, et al.
Plaintiff’s Fourth Amended Verified Petition Page 35 of 57