Brokercheck is a great tool, but you have to be careful when you read it. You likely saw a "Wells Notice" that the broker is required to post and these usually contain just the SEC's side of the story, often in overly strident tones. Yes, the broker likely didn't something wrong (civil, not criminal or his license almost certainly would have been revoke). However, after seven years, it's also possible that has learned from his mistake and is trying to earn an honest living. Life insurance products are well-regulated and if all he did was sell a policy to your parents then it's unlikely that any fraud is involved.

You have the right to cancel the contract. There are ways to make sure you are treated fairly. Just filing a written complaint is actually a very effective way to get resolution on a problem. But perhaps you should slow down and go through the paperwork first. From what you've described here I don't see any glaring red flags, just an advisor who has sold some insurance to your folks.