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PAUL VARACALLO, STEVEN E. Plaintiffs, vs. MASSACHUSETTS MUTUAL LIFE Defendants. |
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CIVIL ACTION NO. 04-2702 (JLL) |
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT |
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DO |
If you have a Permanent Policy and do nothing, you will automatically receive General Policy Relief. If you have a Term Life and/or a Disability Income Policy and do nothing, you will get no policy or cash benefits from this lawsuit, but you may receive Prospective Relief, if applicable. |
SUBMIT A |
If you have a Permanent Policy and you submit a claim form, you can obtain Claim Review Relief, but you will not get General Policy Relief. To be eligible to submit a claim form for a Permanent Policy, you must submit a completed Permanent Policy Election Form postmarked by October 25, 2004. If you have a Term Life and/or a Disability Income Policy, the only way to get policy or cash benefits is to submit a claim to Claim Review Relief for the Delayed Coverage and/or Juvenile Smoker claims, if eligible, described in this Notice. All claim forms for Term Life and/or Disability Income Policies must be postmarked by November 8, 2004. You are not eligible for General Policy Relief. |
EXCLUDE |
Get no benefits. This is the only option that allows you to ever be part of any other lawsuit against MassMutual about the legal claims in this case, but by excluding yourself you will receive no benefits from this settlement. All exclusion requests must be postmarked by October 25, 2004 and will be effective upon the Court's determination or approval. |
OBJECT |
If you write to the Court about why you don't like this settlement, you will still get benefits from this settlement. All objections must be delivered to Class Counsel and to MassMutual's Counsel identified in this Notice, and filed with the Court so that they are received by October 25, 2004. |
GO TO A |
If you speak in Court about the fairness of this settlement, you will still get benefits from this settlement. If you wish to make an appearance and speak at the Fairness Hearing you must deliver a written notice of intention to appear to Class Counsel and to MassMutual's Counsel identified in this Notice, and file said notice with the Court, so that it is received by November 2, 2004. The hearing will be held on November 22, 2004 at 10:00 a.m. (Eastern) at the Martin Luther King Federal Building & United States Courthouse, 50 Walnut Street, Newark, New Jersey in the Courtroom of the Honorable Jose L. Linares. |
PART 1: WHY YOU HAVE RECEIVED THIS NOTICE |
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WHY DID I |
You have received this Notice because you may be eligible for certain benefits through the proposed settlement of a class action lawsuit. The lawsuit was brought on behalf of a Class of policyowners against Massachusetts Mutual Life Insurance Company, Connecticut Mutual Life Insurance Company, C.M. Life Insurance Company and MML Bay State Life Insurance Company (collectively the "Company" or "MassMutual"). The lawsuit makes a variety of claims against MassMutual, including claims relating to the manner in which certain life insurance policies were sold, serviced and administered. Although the Court has not yet approved the proposed settlement, it has directed that this Notice be sent to you as a potential Class Member. The essential terms of the settlement are set forth below. However, this Class Notice is just a summary of the Settlement Agreement between the Parties, which sets forth in greater detail the rights and obligations of the Parties. If there is any conflict between this Class Notice and the Settlement Agreement, the Settlement Agreement governs. Capitalized terms not otherwise defined in this Class Notice have the meaning defined in the Settlement Agreement. You should read this Notice carefully, because it explains decisions you must make and actions you must take now. Those decisions and actions will affect your legal rights and any relief you may be eligible to receive under the proposed settlement. |
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WHAT DOES |
In return for resolving all claims involving Permanent life insurance Policies in the Class, the proposed settlement offers Class Members with Permanent Policies a choice between two types of relief: General Policy Relief and Claim Review Relief. In return for resolving all Delayed Coverage Claims involving Term Life and/or Disability Income Policies in the Class, the proposed settlement offers Claim Review Relief for Delayed Coverage Claims to Class to Class Members with Term Life and/or Disability Income Policies. In return for resolving all Juvenile Smoker Claims involving eligible Term Life Policies in the Class, the proposed settlement offers Claim Review Relief for eligible Term Life Policies with Juvenile Smoker Claims. In addition, MassMutual has agreed to make certain additional written disclosures aimed at assuring that its policyholders fully understand the Delayed Coverage issue and certain changes regarding the Juvenile Smoker issue.
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PART 2: DESCRIPTION OF THE CLASS |
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WHY IS THIS A |
In a class action, one or more people, called named Plaintiffs (in this case Paul Varacallo, Steven E. Feldman, K. Werner Gass, Jeremiah B. Walsh, William A. Karges, Jr., Jeffrey M. Weiner, as Trustee of the Karges Irrevocable Trusts I and II and Donald A. Wofford), sue on behalf of people who have similar claims. All these similarly situated people are a Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. In an Order dated June 24, 2004, the Court in this Action preliminarily certified a Class for purposes of a settlement, among other orders. |
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AM I A MEMBER |
With the exceptions listed below, the Class includes all persons and entities (such as companies or trusts) who at any time from January 1, 1983 through December 31, 2003 (the "Class Period") have or had an ownership interest in one or more Permanent Policies or in one or more Term Life and/or Disability Income Policies (collectively "Policy" or "Policies") issued by MassMutual with an issue date during the Class Period. |
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WHAT POLICIES |
Please keep in mind that "MassMutual" as used in this Notice refers collectively to Massachusetts Mutual Life Insurance Company, Connecticut Mutual Life Insurance Company, C.M. Life Insurance Company and MML Bay State Life Insurance Company. Therefore, you are a member of the Class if you own or owned a Permanent, Term Life and/or Disability Income Policy issued by any one of these insurance companies during the Class Period. |
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WHAT IS A |
Permanent Policies are all life insurance products issued during the Class Period by MassMutual that generate a cash or account value. They include whole life, universal life, variable life and variable universal life insurance policies. |
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WHAT IS A |
Term Life Policies are life insurance policies issued by MassMutual, other than Permanent Policies or policies issued to groups, and which are not otherwise excluded from the Class as defined herein. Disability Income Policies are insurance policies issued by MassMutual that provide to individuals who are disabled: (a) income benefits; or (b) reimbursement for business overhead expenses, other than policies issued to groups, and which are not otherwise excluded from the Class as defined herein. |
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WHAT IS A |
Juvenile Policies are those Policies, such as Permanent Policies and/or Term Life Policies, that were issued by MassMutual on the lives of insureds who were minors as of the date of issue, as defined in the Policy. Even if your Policy is no longer in force, you are a member of the Class if you owned one or more of those Policies issued during the Class Period. |
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ARE THERE |
The proposed Class does not include the following persons or entities (unless they are members of the Class because of their ownership interest in other Policies):
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I'M STILL NOT |
If you do not understand whether or not your are a Class Member, please contact 1-800-270-2335, and a representative will assist you. (If you use TDD/TTY, click here.) |
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PART 3: DECISIONS YOU MUST MAKE NOW |
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WHAT DO I |
First, you must decide now whether you wish to remain in the Class or to exclude yourself from the Class. If you want to be excluded from the Class, you must notify the Court as described below in Part 8. This request must be postmarked no later than October 25, 2004. If you exclude yourself:
Class, you will automatically be eligible for General Policy Relief if this settlement is approved. Alternatively, you will also be eligible to apply for relief through Claim Review if you send in the Permanent Policy Election Form postmarked no later than October 25, 2004. You must decide now which settlement benefit you want to receive for your Permanent Policy. These options are described in Part 5 below. If you have a Disability Income Policy with a Delayed Coverage Claim or if you have a Term Life Policy with a Delayed Coverage Claim and/or, if eligible, a Juvenile Smoker Claim, and you decide to remain in the Class, you must submit a claim through the Claim Review Process. To submit a claim, you must complete the Term Life and/or Disability Income Policies Claim Form for a Delayed Coverage Claim or, if eligible, the Term Life Policies Claim Form (for a Juvenile Smoker Claim, in addition to a Delayed Coverage Claim, which will be indicated by the inclusion in your Notice Package of this qualifying claim form). All of these completed Claim Forms must be postmarked no later than November 8, 2004. Third, if you remain in the Class, you also may object to any aspect of the proposed settlement by filing a written objection. The Court and the Parties must receive your written objection no later than October 25, 2004. If you want to speak at the Fairness Hearing, you must also file a Notice of Intention to Appear at the Fairness Hearing that must be received by November 2, 2004. The procedures for objecting and speaking at the Fairness Hearing are described in Parts 9.C and 9.D below. |
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WHAT AM I |
If you remain in the Class, you will be bound by all orders and judgments in this case, whether favorable or unfavorable. You will not be able to start, continue or otherwise participate in any other claim, lawsuit or other proceeding against MassMutual if those claims have been or could have been asserted in this lawsuit. If You Have or Had an Ownership Interest in More than One Policy Covered by the Class Definition, You Must Make a Separate Decision for Each Policy. Where more than one person has or had an ownership interest in a Policy, all owners will be presumed to be acting jointly. If one owner excludes a particular Policy from the Class, then all persons with an ownership interest in that Policy are bound by that decision. |
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WHAT HAPPENS |
If you own or owned a Permanent Policy and you do nothing, you will automatically receive General Policy Relief if the settlement is approved. You will not be able to later submit a claim to the Claim Review Process. If you own or owned a Term Life and/or Disability Income Policy and you do nothing, you will not receive any cash benefits if the settlement is approved. |
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PART 4: DESCRIPTION OF THE LAWSUIT AND THE SETTLEMENT |
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WHAT IS THIS LAWSUIT ABOUT? |
On June 10, 2004, Varacallo, et al. v. Massachusetts Mutual Life Insurance Company, et al., was filed as a class action in the United States District Court of the District of New Jersey ("the Action"). The complaint asserts claims on behalf of a class of current and former policyowners of MassMutual. On June 23, 2004, the parties signed a Settlement Agreement and agreed to settle the case. The proposed settlement provides a number of benefits to Class Members. In return, Class Members will release MassMutual from certain liability relating to their Policies, as described in Part 7 below and in Appendix A. The Action alleges that, from January 1, 1983 through December 31, 2003, MassMutual made misrepresentations and failed to disclose important information, and engaged in other wrongdoing in connection with the sale, servicing and administration of its Policies. The lawsuit alleges, among other things, that MassMutual:
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HOW DOES |
MassMutual denies any and all allegations of wrongdoing and does not admit or concede any actual or potential fault, wrongdoing or liability in connection with any facts or claims that have been or could have been alleged in this Action or in any other similar action. |
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HOW MUCH DID |
The Parties negotiated the proposed settlement with an understanding of the factual and legal issues that would affect the outcome of this Action. There have been multiple lawsuits against MassMutual in several other courts, including, but not limited to, cases pending in New Jersey (Varacallo v. MassMutual), California (Karges v. MassMutual and Wofford v. MassMutual), Ohio (Gass v. MassMutual), Louisiana and Texas state and federal courts, which began over nine years ago. Plaintiffs, through their attorneys, thoroughly examined and investigated the facts and law relating to the issues in those cases and in this Action. Plaintiffs' investigation included pre- and post-complaint fact-finding, review of hundreds of thousands of pages of documents from MassMutual's files, sworn depositions of numerous MassMutual officers and employees, and consultation with various experts. In light of Plaintiffs' investigation and evaluation of the facts and the law, and in light of MassMutual's desire to avoid the disruption of continued litigation, Plaintiffs and MassMutual have concluded that this lawsuit should be settled as proposed. The Parties believe the settlement is fair, reasonable and adequate and will provide substantial benefits to the Class. The Court has not decided whether Plaintiffs' claims or MassMutual's defenses have any merit, and it will not do so if the proposed settlement is approved. The proposed settlement does not suggest that MassMutual has or has not done anything wrong, or that Plaintiffs and the Class would or would not win their case if it were to go to trial. |
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PART 5: THE SETTLEMENT BENEFITS - WHAT YOU GET |
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WHAT |
If you decide to remain in the Class, and if the Court approves the proposed settlement, you will be eligible to receive one or more forms of relief for each of your Policies. The specific benefits for which you are eligible depend on several factors which are explained further below. You do not have to give up your Policy to receive benefits under the proposed settlement. |
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WHAT CAN I |
Enclosed with this Notice is a Statement of Eligibility for each Permanent Policy in the Class, which identifies the benefits you are eligible to receive. If you have a Term Life and/or Disability Income Policy, this information is on the Term Life and/or Disability Income Policies Claim Form or, if eligible, the Term Life Policies Claim Form. Please consult your Statement of Eligibility as you review the benefits described below. If you are still not sure about your eligibility for proposed settlement benefits, please call 1-800-270-2335 (or, if you use TDD/TYY, click here) for assistance. There are two categories of benefits under the proposed settlement for Class Members who own or owned a Permanent life insurance Policy: General Policy Relief and Claim Form Relief. General Policy Relief is available to all Class Members with Permanent Policies without requiring any showing that MassMutual did anything wrong. Claim Review Relief requires participants to complete and sign a form, under penalty of perjury, explaining how they were misled or otherwise harmed and to submit whatever documents or other evidence they have that relate to the claim. Class Members with Disability Income Policies may submit a Delayed Coverage Claim and Class Members with Term Policies may submit a Delayed Coverage Claim and/or, if eligible, a Juvenile Smoker Claim and only as part of the Claim Review Process. IF YOU DECIDE TO REMAIN IN THE CLASS, YOU MUST, FOR EACH PERMANENT POLICY YOU DECIDE TO KEEP IN THE CLASS, CHOOSE NOW BETWEEN GENERAL POLICY RELIEF AND CLAIM REVIEW RELIEF. |
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IF I OWN OR |
If you are a Class Member with a Permanent Policy and you choose General Policy Relief, you do not need to do anything. You will automatically receive General Policy Relief if the Court approves the proposed settlement. If you have a Permanent Policy and want to participate in Claim Review Relief, you must make this choice now by submitting a Permanent Policy Election Form postmarked no later than October 25, 2004. You cannot receive both General Policy Relief and Claim Review Relief for the same Policy. |
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IF I OWN OR |
If you have a Term Life and/or Disability Income Policy and seek relief for a Delayed Coverage Claim, and/or if you have an eligible Term Life Policy and seek relief for a Juvenile Smoker Claim, you are not eligible for General Policy Relief. To be eligible to receive monetary relief under the proposed settlement, you must instead participate in the Claim Review Process and submit a Term Life and/or Disability Income Policies Claim Form for your Delayed Coverage Claim. If you have an eligible Term Life Policy (as indicated on the claim form), you must submit a Term Life Policies Claim Form for your Delayed Coverage Claim and/or Juvenile Smoker Claim postmarked no later than November 8, 2004. |
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WHAT IF I AM |
There will be only one award of relief per Policy. Where more than one person or entity has an ownership interest in a Policy, all owners will be presumed to be acting jointly when exercising their rights under the proposed settlement. If one such person excludes the Policy from the Class, all others with ownership interests in that Policy will be bound by that decision. |
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WHEN WILL |
Benefits will become available under the proposed settlement only if and when three things happen. First, the Court must approve the proposed settlement. The Court will grant its approval only if it finds that the proposed settlement is fair, reasonable and adequate and that this Action meets all of the legal requirements of a class action. Second, the Court's approval of the settlement must become final and no longer be subject to appeal. Third, certain events specified in the Settlement Agreement must occur. No one can say with certainty if or when these events will occur. Please note: You will not be eligible for any relief under this settlement, nor will you release any claims, if the Court does not approve the proposed settlement, or if one of the Parties terminates the settlement. |
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IF I OWN OR |
A. GENERAL POLICY RELIEF
If you are a Class Member with a Permanent Policy and do not elect Claim Review and do not exclude yourself from the Class with respect to your policy, you automatically will be entitled to the General Policy Relief for which that Policy is eligible. The General Policy Relief consists of a Settlement Death Benefit, which will be provided at no cost to Class Members. These benefits are of limited duration, as described below. If the Class Member does not timely designate a beneficiary on the Designation Form, then the person to receive the Settlement Death Benefit shall be the beneficiary under the Policy as of the Eligible Date. |
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IF I OWN OR |
under the Settlement Death Benefit, please return the enclosed Designation Form to: Massachusetts Mutual Class Action Information Center P.O. Box 919 Minneapolis, MN 55440-0919 Re: Designation Form
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WHAT IS THE |
B. THE CLAIM REVIEW PROCESS
The Claim Process. The Claim Review Process is provided at no cost to you. Your claim will be evaluated by a neutral Claim Evaluator recommended bt Class Counsel and agreed to by MassMutual. This Claim Evaluator will consider your Claim Form, any other documents you have submitted, and the documents that MassMutual has collected about your policy. The Claim Evaluator will use guidlines agreed to by the Parties and submitted to the Court for approval. Relief Available. The amount and type of relief awarded in the Claim Review Process will depend on the nature and strength of your claim, as measured by the statements made in your Claim Form and documents submitted by you and MassMutual. Relief awarded can range from no relief at all to a cash award designed to redress any loss that may have resulted from the alleged wrongdoing or an enhancement to the Policies. The Likelihood that you will receive cash relief in the Claim Review Process cannot be known in advance. If your claim is determined not to warrant relief, you will receive no relief at all. The Claim Evaluator's decision will be final. |
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WHO CAN |
1. An Explanation of the Claim Review Process
If you are a class Member with a Permanent Policy and believe you were misled by a misstatement, that important information was not disclosed to you, or that you were otherwise harmed by wrongdoing in connection with your Policy, you may choose to seek an award through theClaim Review Process instead of receiving the General Policy Relief. The Claim Review Process ("CRP") required you to establish that you have a claim and have suffered some harm. A neutral Claim Evaluator will score all claims on a scale of "0" through "4". If you are a Class Member with a Term Life and/or Disability Income Policy and you seek to make a Delayed Coverage Claim or if you are a Class Member with a Term Life Policy and are also eligible to submit a Juvenile Smoker Claim, you must seek an award through the Claim Review Process. The CRP required you establish that you have a Delayed Coverage Claim and/or, if eligible, a Juvenile Smoker Claim and have suffered some harm. |
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HOW MUCH IS |
The Claim Review Process will provide awards to Class Members of a minimum aggregate cash value of $130 million and a maximum aggregate cash value of at least $165 million. If the value of the relief awarded through the CRP is less than $130 million, the remaining amount will be distributed to those Class Members with Permanent Policies who elected the Claim Review Process for Claims other that or in addition to Delayed Coverage Claims and/or Juvenile Smoker Claims and scored a 2, 3 or 4. If the value of the relief awarded through the Claim Review Process is greater than $165 million, plus and additional monies MassMutual may be required to pay for Claim Review Relief under the proposed settlement, CRP awards for all Polocies will be proportionately reduced. |
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IF I OWN OR |
2. Examples of Typed of Claims that Can be Presented in CRP for Permanent Policies Limited Premium Payment Claims: Any claim that, at the time you bought your Policy, MassMutual or its sales representatives led you to believe that you would have to pay only a single premium, a fixed number of premiums, or premiums for a fixed period of time, and that you then would not have to pay any more out-of-pocket payments to keep your Policy in force throughout your life without a reduction in the Policy's death benefit. Performance Claims: Any Claims that, at the time you bought your Policy, MassMutual or its sales representatices led you to believe that the cash or account value in your policy would not be less that illustrated or would be maintained at a specific level over the life of the Policy, or that the dividend scales, interest crediting rates, policy credits or charges would never fall below current levels or that premium payments would remain the same throughout the life of the Policy without a reduction in death benefits or cash value. Replacement Claims: Any claim that (i) at the time you bought your Permanent Policy, MassMutual or its sales representatives misrepresented to you the financial impact of using the cash or account value, dividends or interest from an existing policy - whether issued by MassMutual or by any other company - to purchase a new MassMutual Policy; or (ii) in your Permanent Policy or application attached thereto, MassMutual or its sales representatives misrepresented that your Permanent Policy was not replacing or changing an existing policy of MassMutual or another insurer; or (iii) at the time you bought your Permanent Policy, MassMutual or its sales representatives failed to provide you any state-mandated written disclosures regarding the risks and costs of replacement. Retirement/Investment Claims: Any claim that, at the time you bought your Policy, MassMutual or its sales representatives led you to believe that the product you were purchasing was actually or was primarily a savings, investment or retirement plan, without adequately disclosing to you that the product was a life insurance policy. Delayed Coverage Claims: Any Claim that you paid the initial premium on your policy after the Policy issue date and may have been charged premiums for preiods of time when insurance coverage was not provided under the Policy. Juvenile Smoker Claims: Any claim that a Juvenile Policy issued by the Company on the life of an insured with an age of minority at issue, as defined in the Policy, was issued or administered in any manner that classified or treated the insured under the Juvenile Policy as a smoker or failed to provide the same premium rated, policy charges, dividends or credited interest that would have applied if the insured were treated as a non-smoker. Other Claims: Any claim no defined above that is based on alleged misrepresentations or other wrongdoing in the marketing or sale of the Policy. These claims are referred to as "ADR" (Alternative Dispute Resolution) Claims. If you remain in the Class and later assert a claim against MassMutual that is related to your Policy and that is not released by the Released Transactions (as the term is defined in the Release and Waiver, which is reprinted in Appendic A), MassMutual may require you to resolve your claim in the ADR Process. The ADR Process also will allow you to address claims relating to or arising out of the servicing and administration of your Policy after you bought it, if you did not discover those claims prior to December 31, 2003, and you could not have learned of them before that date, even if you have used reasonable care. Finally, you and MassMutual may agree to resolve in the ADR Process and claims relating to your Policy that arise in the future. |
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IF I OWN OR |
3. Types of Claims that Can Be Presented in CRP for Term Life and/or Disability Income Policies Delayed Coverage Claims: For Term Life and/or Disability Income Policies, and claims that you have paid the initial premium on your policy after the Policy issue date and may have been charged premiums for periods of time when insurance coverage was not provided under the policy. Juvenile Smoker Claims: For eligible Term Life Policies, any claim that a Juvenile Policy issued by the Company on the life of an insured with an age of minority at issue, as defined in the Policy, was issued or administered in any manner that classified or treated the insurace under the Juvenile Policy as a smoker or failed to provide the same premium rates, policy charges dividends or credited interest that would have applied if the insured were treated as a non-smoker. |
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WHAT IS THE |
4. How to Elect CRP and Submit a Claim for Permanent Policies Choosing the Claim Review Process. To seek an award in the Claim Review Process for Permament Policies, you must return the enclosed Permanent Policy Election Form postmarked no later than October 25, 2004. If you do not return your Permanent Policy Election Form postmarked no later than October 25, 2004, you cannot participate in the Claim Review Process. Instead, you will receive the Settlement Death Benefit. |
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DO I HAVE TO |
Filing a Claim. At this point, you do not need to file your claim. You need only return the Permanent Policy Election Form indicating your choice to participate in the Claim Review Process.
timely Permanent Policy Election Form, the Company later will send you a claim form. When you receive the Claim Form, you must fill it out completely and attach all documents, if any, you have that relate to the Policy and your claim. You may also submit affidavits or other information to support your claim. If you decide not to file a Claim Form, or if you do not mail it on time, you will no longer be eligible for the Claim Review Process. Instead, you will automatically receive the Settlement Death Benefit provided in General Policy Relief. |
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WHAT IS THE |
5. How to Submit a Claim for Term Life or Disability Income Policies Delayed Coverage Claims and/or Juvenile Smoker Claim Submission for Term Life and/or Disability Income Policies. To seek an award in the Claim Review Process for Term Life and/or Disability Income Policies, you must return the enclosed Term Life and/or Disability Incoming Policies Claims Form indicating you are submitting a Delayed Coverage Claim and/or, if eligible, the Term Life Policies Claim Form (for a Juvenile Smoker Claim, in addition to a Delayed Coverage Claims, which will be indicated by the inclusion in your Notice Package of this qualifying claim form) with supporting documentation postmarked no later than November 8, 2004. |
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WHAT IS THE |
C. PROSPECTIVE RELIEF FOR DELAYED COVERAGE CLAIMS AND JUVENILE SMOKER CLAIMS For Delayed Coverage Claims, MassMutual has agreeed that it will, within 90 days of the settlement attaining finality, provide policyholders with a disclosure statement when individuals apply for a life or disability insurance policy informing them of their options regarding policy dating, until other disclosure language is made part of the application. For Juvenile Smoker Claims, upon the attainment of the age of minority of the insured, as defined in the Policy, MassMutual shall, on all present and future applicable juvenile life policies, change the dividen treatment and, on all applicable present and future juvenile universal life policies, change the cost of insurance treatment that have or otherwise would have classified or treated the juvenile insured as a "smoker" and shall classify such juvenile policies as "non-smoker," unless the juvenile insured designated himself or herself as a smoker or unless MassMutual classifies the insured as a smoker pursuant to its established policies and practices applicable to policies other than Juvenile Policies. On or abut the insured's age of majority, MassMutual will send out a questionnaire to the owners of Juvenile Policies asking that, if the juveniles insured under the Policies are smokers, they designate themselves as such. |
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WHEN WILL I |
D. WHEN RELIEF IS DISTRIBUTED The Court will hold a hearing on November 22, 2004 to decide whether to approve the settlement. If the Court approves the Settlement after that, there may be appeals. It is uncertain when these appeals can be resolved, and resolving them can take time, perhaps more than a year. Everyone who sends in a claim form will be informed of the progress of the settlement. Please be patient. |
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PART 6: INCOME TAX CONSEQUENCES |
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WILL THE |
Your receipt of benefits under this proposed settlement could have tax consequences for you. Those tax consequences may vary depending on your individual circumstances. Class Counsel, MassMutual, MassMutual's Counsel and the represntatives at the toll-free telephone numbers listed in this Notice CANNOT make any representations about the tax consequences that may result, if any, or advise you about the tax consequences of receiving settlement relief in your particular circumstances. You should consult your own tax advisor to determine any Federal, state, local or foreign tax consequences that could result from accepting or pursuing any form of relief under the proposed settlement. |
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PART 7: RELEASE OF CLASS MEMBERS' CLAIMS AND DISMISSAL OF LAWSUIT |
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WHAT WILL |
If the Court approves the proposed settlement, you must release (give up) all claims that have been or could have been asserted in this lawsuit, and the case will be dismissed on the merits and with prejudice. If you remain in the Class and accept the benefits of the settlement, you may not assert any of those claims in any other lawsuit or proceeding with respect to that Policy, including any other lawsuit or proceeding already in progress. In addition, in exchange for the benefits provided under the proposed settlement, you must release MassMutual, its successors, predecessors and subsidiaries, and others (including MassMutual's sales representatives, agents and brokers) from liability for certain known and unknown claims relating to the Policies involved in the settlement, including any claims for compensatory, exemplary or punitive damages. The Release is a critical element of the proposed settlement. For that reason, it has been reprinted word-for-word in Appendic A to this Notice. You should READ THE RELEASE CAREFULLY, because it will affect your rights if you remain in the Class. The settlement of this lawsuit does not change any of your contractual rights under the express terms of your existing life insurance or disability income Policy. You will still be able to make a claim for any benefits that may become payable under your Policy's terms. |
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PART 8: INSTRUCTIONS FOR EXCLUDING YOURSELF FROM THE CLASS |
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HOW DO I ASK |
If you do not wish to participate in the settlement, you may ask to be excluded from the Class, which will be effective upon the Court's determination or approval. To request exclusion from the Class, you must mail a written request to the court-appointed Notice Administrator, postmarked by October 25, 2004 to: Notice Administrator c/s Massachusetts Mutual Class Action Information Center P.O. Box 919 Minneapolis, MN 55440-0919 Your request for exclusion need not be in any particular form, but it must state the following information: (1) your name, address and telephone number; (2) the Policy number(s) for which you are requesting exclusion; (3) a statement that you wish to be excluded from the Class as to each Policy listed; (4) your signature; and (5) the case name and number that is at the very beginning of this notice. Please write the words "EXCLUSION REQUEST" on the lower left-hand corner of the front of the envelope. If you own or owned more than one Policy affected by the proposed settlement, you may choose to remain a Class Member as to some Policies but to exclude youself from the Class as to other Policies. |
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WHAT ARE THE |
If you request exclusion from the Class, the for each Policy that you exclude:
or more persons in addition to you had an ownership interest in your Policy, and it any one of those persons excludes himself or herself from the Class, all other will automatically be excluded as well. The identity of any additional owners, as reflected in MassMutual's records, is shown on the enlosed Statement of Eligibility. REMEMBER: YOUR REQUEST FOR EXCLUSION MUST BE POSTMARKED NO LATER THAN OCTOBER 25, 2004. OTHERWISE, YOUR REQUEST WILL BE LATE AND INVALID. IF YOUR EXCLUSION REQUEST IS PORTMARKED AFTER OCTOBER 25, 2004: YOU WILL REMAIN A MEMBER OF THE CLASS, AND YOU WILL BE BOUND BY THE SETTLEMENT AND BY ALL ORDERS AND JUDGMENTS IN THIS LAWSUIT. YOU WILL NOT BE ABLE TO FILE OR PARTICIPATE IN ANY OTHER LAWSUIT OR PROCEEDING BASED ON OR RELATING TO THE CLAIMS, CAUSES OF ACTION, FACTS OR CIRCUMSTANCES OF THIS CASE. |
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PART 9. FAIRNESS HEARING, RIGHT TO OBJECT TO PROPOSED |
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WHEN AND |
A. THE FAIRNESS HEARING
On November 22, 2004, at 10:00 a.m. (Eastern), the Court will hold a fairness Hearing to consider whether to grant final certification to the Class for settlement purposes, and whether to approve the proposed settlement as fair, reasonable and adequate. The court also will determine the amount of attorneys' fees and expenses to be awarded to Plaintiffs' Counsel. The hearing will be held before Judge Jose L. Linares at the United States District Court for the District of New Jersey, at the Martin Luther King Federal Building and United States Courthouse, 50 Walnut Street, Newark, New Jersey. |
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DO I HAVE TO |
If you have not asked to be excluded from the Class, you may object to any aspect of the proposed settlement, as discussed below. You also may appear at the Fairness Hearing to present your objections, although you are not request to do so. Please not that the Court has the right to change the hearing date of time without further notice. If you are planning to attend the hearing, you should confirm the date and time before going to the Court. |
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WHAT'S THE |
B. OBJECTING VERSUS EXCLUDING
If you object to the settlement, you still remain a member of the Class and you will still receive the benefits under the settlement if it is approved. You will also be bound by any subsequent rulings in this case and you will not be able to file or participate in any other lawsuit or proceeding based on or relating to the claims, causes of action, facts or circumstances of this case. If you exclude yourself from the Class, on the other hand, you will not be eligibile to receive any benefits under the settlement if it is approved. You will also not be bound by any subsequent rulings in this case. |
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HOW CAN I |
C. YOUR RIGHT TO OBJECT, AND INSTRUCTIONS FOR OBJECTING You must remain a member of the Class with respect to at least one Policy in order to object to any aspect of the proposed settlement, including final certification of a settlement class, the fairness of the proposed settlement, the adequacy of the Class's representation by Plaintiffs and their attorneys, and the award of attorneys' fees. Any objections must be delivered in writing and must be received by the Court and the Parties no later than October 25, 2004. Your written objection must include: (1) your name, address and telephone number; (2) your Policy number(s); (3) a statement of your objection(s), and any supportive evidence you wish to introduce; and (4) the case name and number YOU MUST MAIN YOUR WRITTEN OBJECTIONS TO THESE THREE PLACES SO THAT IT IS RECEIVED NO LATER THAN OCTOBER 25, 2004: COURT Clerk of the Court United State District Court District of New Jersey Marting Luther King Building and United States Courthouse 50 Walnut Street Newark, New Jersey 07102 CLASS COUNSEL Bruce D. Greenberg Lite DePalma Greenberg & Rivas, LLC Two Gateway Center, 12th Floor Newark, New Jersey, 07102 MASSMUTUAL'S COUNSEL John P. Hooper EDWARDS & ANGELL, LLP 750 Lexington Avenue, 14th Floor New York, New York 10022 The Court will not consider any objections filed after October 25, 2004. Late objections will be deemed to have been given up or waived. If you file your objections but the Court approves the Settlement as proposed, you still will be eligible for settlement relief. Therefore, even if you object to the settlement, you should shoose at this time for each Permanent Policy the form of reliet you would like to receive - either General Policy Reliet or Claim Review Reliet. If you own or owned a Term Life and/or Disability Income Policy and you seek to make a Delayed Coverage Claim, you should at this time submit your Term Life and/or Disability Income Policies Claim Form. If you own or owned a Term Life Policy and are eligible to make a Delayed Coverage Claim and/or Juvenile Smoker Claim, you should at this time submit you Term Life Policies Claim Form. |
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CAN I APPEAR |
D. YOUR RIGHT TO APPEAR If you file and serve a timely written objection as described above, you may - but are not required to - attend the Fairness Hearing, either in person or through an attorney paid by you. You or your attorney may appear at the hearing to object to any aspect of the proposed settlement, including final certification of a settlement class, the fairness of the proposed settlement, the adequacy of the Class's representation by Plaintiffs and their attorneys, and the award of attorneys' fees or expenses. You (and/or your attorney) may, at your own expense, review the discovery materials applicable to this Action. Those documents will be made available by appointment with Class Counsel during regular business hours at a place designated by Class Counsel. To Obtain access, you (and/or your attorney) must first sign a Stipulation of Confidentiality, which Class Counsel will provide. |
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WHAT NOTICES |
E. NOTICES YOU AND YOUR OWN ATTORNEY MUST FILE WITH THE COURT TO APPEAR If you or your attorney intends to appear at the Fairness Hearing, you or your attorney must file a Notice of Intention to Appear at the Fairness Hearing with the Clerk of the Court, and service that Notice on Plaintiffs' Counsel and MassMutual's Counsel, at the addresses listed above in Part 9.C. The Court and the Parties must receive your Notice of Intention to Appear at the Fairness Hearing no later than November 2, 2004. In addition, if you hire an attorney to represent you, your attorney must file a Notice of Appearance with the Clerk of the Court, and serve the notice on the attorneys for Plaintiffs and MassMutual, at the addresses listed above in Part 9.C. This Notice of Appearance is merely to advise the Court that the attorney you hired at your own expense will file papers on your behalf with the Court. If the attorney you hure at your own expense wishes yo appear at the Fairness Hearing he or she must also file a Notice of Intention to Appear at the Fairness Hearing, as indicated above. The Court and the Parties must receive any Notice of Appearance no later than October 25, 2004. |
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PART 10: COUNSEL FOR THE SETTLEMENT CLASS |
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WHO ARE THE |
The Court has designated the law firms of Bonnett, Fairbourn, Friedman & Balint, P.C., Finkelstein & Krinsk, LLP, Lite DePalma Greeberg & Rivas, LLP, Lerach Coughlin Stoia & Robbins LLP, Milberg Weiss Bershad & Schulman, LLP and Specter, Specter, Evans & Manogue, P.C. as Counsel for the Class for purposes of the settlement of this lawsuit. You will not be charged for the services of the law firms representing the Class Members. You have the right to retain your own attorney to represent you in this case, but you are not obligated to do so. If you do hire your own attorney, you will have to pay his or her fees and expenses. You also have the right to represent yourself before the Court without an attorney. |
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PART 11: ATTORNEYS' FEES, EXPENSES AND INCENTIVE AWARDS |
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HOW WILL THE |
At the Fairness Hearing, Class Counsel will ask the Court for an award of attorneys' fees and expenses not to exceed $58.2 million in fees and expenses, to be paid by MassMutual. MassMutual will not oppose Class Counsel's application for an award of fees and expenses up to that amount. Class Counsel will also ask the Court for incentive awards of up to $10,000 per named Plaintiff, for their time and effort spent participating in this case. You will not be required to pay any portion of these attorneys' fees, expenses or awards. Payment of attorneys' fees and expenses to Class Counsel is in addition to payment of benefits to Class Members and will not reduce any funds or benefits being made available to you. |
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PART 12: RIGHT TO TERMINATE THE PROPOSED SETTLEMENT |
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CAN THE |
Under certain circumstances, each of the Parties to this lawsuit has the right to terminate the proposed settlement. Such circumstances include the decision of the Court or any appellate court to reject, modify, or deny approval or any portion of the proposed settlement. If the proposed settlement is terminated, you will no receive any of the benefits as part of the proposed settlement, and you will not be affected in any way by the Parties' actions in connection wtih the proposed settlement. |
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PART 13: PRELIMINARY AND PERMANENT INJUNCTION, AND EFFECT ON |
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HOW WILL THE |
The Court has preliminarily enjoined all class Members and/or their representatives (who do not times exclude themselves from the Class) from filing, commencing, prosecuting, maintaining, intervening in, participating in, conducting, or continuing litigation as class members or otherwise, receiving and benefits from, any lawsuit, administrative, or regulator proceesing or order in any jurisdiction, based on or relating to the claims or causes of actions or the facts, and circumstances relating thereto, in the Action and/or the Released Transactions. If you do not ask to be excluded from the Class, you will be bound by this preliminary injunction. the Court has also preliminarily enjoined all Class Members and all persons action in active concert or participation with Class Members from filing, commencing, or prosecuting a lawsuit as a class action, a separate class, or group for purposes of pursuing a putative class action (including by seeking to amend a pending complaint to include class allegations or by seeking class certification in a pending action in any jurisdiction) on behalf of Class Members (who do not timely exclude themselves from the Class), arising out of, based on or relating to the claims, causes of action, facts and/or circumstances relating thereto, in the Action and/or the Released Transactions. The Court has also preliminarily enjoined all Class Members and all persons acting in active concert or participation of any class Members (who do not timely exclude themselves from the Class) into a seperate class or group for purposes of pursuing a putatuve class action, any claim or lawsuit, in any jurisdiction based on, arising out of, or relating to the claims, causes of action, facts, and/or circumstances relating thereto alleged in the Actions and/or the Released Transactions. Upon final approval of the settlement, Plaintiffs and MassMutual will ask the Court to enter a permanent injunction enjoining all Class Members and/or their representatives and/or persons organizing Class Members from engaging in the activities described above. All Class Members will be bound by the permanent injunction. If you do not submit a written request to be excluded from the Class, postmarked by October 25, 2004, you will be bound by all proceedings, orders and judgments in this action, even if you later begin litigation or other proceedings against the Company relating to your Policies. The Court may enforce its injunction through contempt orders or other judicial proceedings. |
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PART 14: HOW TO GET ADDITIONAL INFORMATION |
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HOW CAN I GET |
This Notice and the accompanying documents are only a summary of the proposed settlement, which is set forth in the more detailed settlement Agreement between the Parties. The full Settlement Agreement is on file with the Clerk of the Court. For a more detailed statement of the matters involved in this case, Plaintiffs and MassMutual also refer you to the complaint and to the other papers and Court orders on file in the Clerk's offlce. You may inspect these documents at the Clerk's office at any time during normal business hours, Monday through Friday, 9:00 a.m. to 4:00 p.m., Eastern time. A toll-free number has been established, and trained personnel are available to answer and questions you might have about the proposed settlement and the forms of relief available. If you have questions after reading this Notice, please call 1-800-270-2335 (or, if you are hearing impaired, 1-877-506-4034) from Monday through Saturday from 9:00 a.m. (Eastern) through 6:00 p.m. (Eastern). You may also send any written questions about the settlement to: Massachusetts Mutual Class Action Information Center P.O. Box 919 Minneapolis, MN, 55440-0919 |
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