If You Own or Owned a John Hancock Flex V Life Insurance Policy, a Class Action Lawsuit May Affect Your Rights.

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1 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF ALAMEDA If You Own or Owned a John Hancock Flex V Life Insurance Policy, a Class Action Lawsuit May Affect Your Rights. A COURT AUTHORIZED THIS NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER. YOU ARE NOT BEING SUED. A Flex V policy owner, Barbara Larson, sued John Hancock over insurance charges deducted from policy owners account values. The Court has allowed the lawsuit to proceed as a class action on behalf of all current and former Flex V policy owners. The Court has not decided whether John Hancock did anything wrong. There is no money available now and no certainty that there will be. However, your legal rights are affected, and you have a choice to make now: YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT DO NOTHING EXCLUDE YOURSELF Stay in this lawsuit. Await the outcome. Give up certain rights. By doing nothing, you keep the possibility of getting money or benefits that may come from a trial or a settlement in this case. But you give up any right to sue John Hancock separately on the claims in this lawsuit. Get out of this lawsuit. Get no benefits from it. Keep your rights. If you ask to be excluded from the lawsuit and money or benefits are later awarded, you won t share in those. But you keep any right to sue John Hancock separately on the claims in this lawsuit. These rights and options and the deadlines to exercise them are explained in this Notice. Claims against John Hancock must be proven. If money or other benefits are obtained from John Hancock, you will be notified about how those benefits will be distributed to you. Questions? Read this Notice and visit R6832 v

2 BASIC INFORMATION 1. Why did I get this Notice? John Hancock s records show that you own or owned a John Hancock Flex V Life Insurance Policy. A Court decided to allow a class action lawsuit to proceed against John Hancock related to how it calculates insurance charges deducted from policy owners account values. You have legal rights and options that you may exercise before trial. The trial is to decide whether the claims being made against John Hancock, on your behalf, are correct. The case may settle or be dismissed before a trial or on appeal. Judge Brad Seligman of the Superior Court of the State of California for the County of Alameda is overseeing this case. The case is known as Larson, et al. v. John Hancock Life Insurance Company (U.S.A.), Case No. RG The person who sued, Barbara Larson, is called the Plaintiff. John Hancock is called the Defendant. 2. What is this lawsuit about? This lawsuit is about whether John Hancock overcharged Flex V life insurance policy owners in violation of the terms of their policies. You can read Plaintiff s Class Action Complaint at 3. What is a class action and who is involved? In a class action lawsuit, one or more people called Class Representatives (in this case Barbara Larson) sue on behalf of other people who have similar claims. Together, those other people are a Class or Class Members. The Class Representative(s) who sued and all the Class Members like them are called the Plaintiffs. The company they sued (in this case John Hancock) is called the Defendant. One court resolves the issues for everyone in the Class except for those people who choose to exclude themselves from the Class. 4. Why is this lawsuit a class action? The Court decided that this lawsuit can be a class action and move toward a trial because it meets the requirements of California Code of Civil Procedure Section 382, which governs class actions in California s courts. Specifically, the Court found that the Class Members are sufficiently numerous, there is a well-defined community of interest among Class Members, and there are substantial benefits from certification that render proceeding as a Class superior to the alternatives. More information about why the Court is allowing this lawsuit to be a class action is in the Court s Order Certifying the Class, which is available at 5. What is the complaint about? THE CLAIMS IN THE LAWSUIT The Flex V is a variable whole life policy, which means it has an investment feature that allows an accumulation of value after deduction of charges. Plaintiff alleges that John Hancock violated the policy in three different ways. First, while the policy permits John Hancock to deduct an insurance charge calculated using an Applied Monthly Rate that is based on expectations of future mortality experience, Plaintiff alleges that John Hancock impermissibly considers factors other than mortality expectations. Second, while the policy permits a separate Maintenance Charge of up to $8 per month, Plaintiff alleges that John Hancock impermissibly includes amounts that should be in the Maintenance Charge in the Applied Monthly Rate. Third, Plaintiff alleges that the policy requires that the Applied Monthly Rate be reviewed at least once every 5 policy years and adjusted to reflect changes in expectations of future mortality, but has not been modified. You can read Plaintiff s Class Action Complaint at R6833 v

3 6. How does John Hancock answer? John Hancock denies these claims. John Hancock believes that all the rates and charges that it applied to the Flex V Life Insurance Policies are consistent with the terms of the policy. The policy includes guaranteed maximum rates, which have never been exceeded. You can read Defendant s Answer to Plaintiff s Class Action Complaint at 7. Has the Court decided who is right? The Court has not decided whether Plaintiff or Defendant is right. By establishing the Class and issuing this Notice, the Court is not suggesting that the Plaintiffs will win or lose this case. 8. What are the Plaintiffs asking for? The Plaintiff is asking that the Class be compensated for the amount of the alleged overcharges, a declaration that Defendant has breached the policy terms, and for injunctive relief requiring Defendant to decrease the Applied Monthly Rates to reflect John Hancock s expectations of future mortality and prohibiting Defendant from continuing to engage in conduct that breaches the policy terms. Plaintiff also seeks attorneys fees, pre-judgment and post-judgment interest, and such other relief the Court permits. 9. Is there any money available now? No money or benefits are available now because the Court has not yet decided whether John Hancock did anything wrong, and the two sides have not settled the case. There is no guarantee that money or benefits ever will be obtained. If benefits are obtained, and you do not remove yourself from the Class, you will be compensated or be notified about how to ask for a share of the proceeds. 10. Am I part of this Class? WHO IS IN THE CLASS Judge Seligman has certified a Class that includes all persons who own or owned a Flex V Scheduled Premium Variable Whole Life Insurance Policy, that is an individual life insurance policy, the benefits, payments or values of which may increase or decrease in accordance with the investment experience of a Separate Account, issued or administered by Defendant or its predecessors in interest, the terms of which provide or provided for (1) an Insurance Charge calculated using an Applied Monthly Rate that is based on Defendant s expectations of future mortality experience ; (2) an additional but separate Maintenance Charge ; (3) an investment, interest-bearing, or savings component; and (4) a death benefit. If someone who would otherwise be a Class Member is deceased, his or her legal heirs are Class Members. The Class excludes: John Hancock; any entity in which John Hancock has a controlling interest; any of the officers, directors, or employees of John Hancock; the legal representatives, heirs, successors, and assigns of John Hancock; Plaintiff s counsel and their employees; and the assigned judge and his family. Also excluded is any policy that discloses factors other than, or in addition to, expectations of future mortality experience used to calculate the Applied Monthly Rates. 11. How can I confirm that I am in the Class? If you are not sure whether you are included in the Class, you can get free help at R6834 v

4 12. What happens if I do nothing at all? YOUR RIGHTS AND OPTIONS You don t have to do anything now if you want to keep the possibility of getting money or benefits from this lawsuit. By doing nothing you are staying in the Class and you will be legally bound by all of the Orders the Court issues and judgments the Court makes in this class action. If you stay in the Class and the Plaintiffs obtain money or benefits, either as a result of the trial or a settlement, you will either be compensated automatically or be notified about how to apply for a share. Keep in mind that if you do nothing now, regardless of whether the Plaintiffs win or lose the trial, you will not be able to sue John Hancock about the same legal claims that are the subject of this lawsuit. 13. Why would I ask to be excluded? If you want to bring your own action against John Hancock related to the issues presented in this case, you should exclude yourself from the Class. Unless you exclude yourself, you give up any right to sue John Hancock for the claims asserted in this class action. If you choose to exclude yourself, you will not get any money or benefits from this lawsuit even if the Plaintiff obtains them as a result of a trial or from any settlement between John Hancock and the Plaintiff. If you start your own lawsuit against John Hancock after you exclude yourself, you will have to hire and pay your own lawyer for that lawsuit, and you will have to prove your claims. If you do exclude yourself so you can start your own lawsuit against John Hancock, you should talk to your own lawyer soon, because your claims may be subject to a statute of limitations. 14. How do I ask the Court to exclude me from the Class? To ask to be excluded, you must send an Exclusion Request in the form of a letter sent by mail, stating that you want to be excluded from Larson v. John Hancock. Be sure to include your name, policy number, and address, and sign the letter. You must mail your Exclusion Request postmarked by July 15, 2017, to Larson v. John Hancock Exclusions, P.O. Box 4850, Portland, OR , or within 30 days after any r ing to a forwarding address. You may also get an Exclusion Request form at the website, Do I have a lawyer in this case? THE LAWYERS REPRESENTING YOU Yes. The Court appointed the following lawyers as Class Counsel to represent all the members of the Class: Norman E. Siegel Stueve Siegel Hanson LLP 460 Nichols Road, Suite 200 Kansas City, MO larsonvhancock@stuevesiegel.com John J. Schirger Miller Schirger LLC 4520 Main Street, Suite 1570 Kansas City, MO larsonvhancock@millerschirger.com Daniel C. Girard Girard Gibbs LLP 601 California Street, 14 th Floor San Francisco, CA If you have questions, you may contact these lawyers. You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, however, you may hire one at your own expense. R6835 v

5 16. Should I get my own lawyer? You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer, you will have to pay that lawyer. 17. How will the lawyers be paid? Class Counsel have not been paid or reimbursed for their time and expenses incurred in pursuing this case. You will not have to pay these fees and expenses. If Class Counsel obtains money or benefits for the Class, they may ask the Court for fees and expenses. If the Court grants Class Counsel s request, the fees and expenses would be either deducted from any money obtained for the Class or paid separately by John Hancock. WHAT HAPPENS NEXT 18. How and when will the Court decide who is right? Unless the case is resolved by a settlement or otherwise, Class Counsel will have to prove the Plaintiffs claims at a trial. The trial is set to start on March 19, 2018 in the Superior Court of California, County of Alameda, th Street, Oakland, CA During the trial, a Jury or the Judge will hear all of the evidence to help them reach a decision about whether the Plaintiffs or Defendant are right about the claims in the lawsuit. 19. Do I have to come to the trial? You do not need to attend the trial. Class Counsel will present the case for the Plaintiffs, and John Hancock will present the defenses. You or your own lawyer is welcome to come to the trial at your own expense. 20. How do I get more information? GETTING MORE INFORMATION Visit the website, where you will find the Court s Order Certifying the Class, the Complaint that the Plaintiffs submitted, the Defendant s Answer to the Complaint, as well as an Exclusion Request form, or call DATE: March 31, 2017 R6836 v