NOTICE OF A PROPOSED SETTLEMENT OF A CLASS ACTION LAWSUIT

Transcription

1 MARLENE JOSEPH, for herself and on behalf of all others similarly situated, vs. Plaintiff, IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA Miami Division Case Number: CIV-MARTINEZ/BROWN LIBERTY NATIONAL LIFE INSURANCE COMPANY, a corporation, CLASS ACTION Defendant. / NOTICE OF A PROPOSED SETTLEMENT OF A CLASS ACTION LAWSUIT This Class Notice has been sent to you pursuant to a Court order, and concerns the proposed settlement of a class action lawsuit relating to life insurance applications submitted to Liberty National Life Insurance Company by legal Florida residents of Haitian descent between October 1, 2003 and June 30, If you or a member of your family were born in Haiti and, while being a legal resident of Florida, applied for a life insurance policy from Liberty National during that time period, the proposed settlement may affect your rights, and may offer you certain benefits which are described in this notice. You have not been sued. This Class Notice is not an opinion by the Court as to the merits of the claims or defenses in the lawsuit, and the statements herein are not findings of the Court. PLEASE READ THIS CLASS NOTICE CAREFULLY, AS IT CONTAINS IMPORTANT FACTS ABOUT THE PROPOSED SETTLEMENT, YOUR RIGHTS UNDER THE SETTLEMENT, AND THE ACTIONS YOU MUST TAKE TO RECEIVE CERTAIN SETTLEMENT BENEFITS FOR WHICH YOU MAY BE ELIGIBLE IF THE SETTLEMENT IS APPROVED BY THE COURT. THE DEFINITIONS OF CERTAIN CAPITALIZED WORDS AND PHRASES USED IN THIS CLASS NOTICE ARE INCLUDED IN APPENDIX A. IT IS IMPORTANT THAT YOU READ THOSE DEFINITIONS, AS WELL AS ALL OTHER PARTS OF THIS CLASS NOTICE. 1

2 PART A: BASIC INFORMATION 1. What is this Action about? This Action claims that, between October 1, 2003 and June 30, 2008, the Company discriminated against black Haitian-born persons who, while legally residing in Florida, submitted life insurance applications to the Company. The Action claims that the Company discriminated against such individuals based upon their race, citizenship, national origin, alienage and ethnicity. Specifically, the Action claims that black Haitianborn persons who, while legally residing in Florida, submitted life insurance applications to the Company were frequently: (1) issued policies by the Company with terms, conditions or benefits inferior to those issued to similarly situated persons of other races or national origin; (2) given false or incomplete information concerning the policies issued to them by the Company; or (3) were subjected to different underwriting requirements than those applied to similarly situated persons of other races or national origin. The Action was filed as a class action, and seeks injunctive, compensatory and other relief from the Company on behalf of the Class. The Company has denied all of these allegations. The Company asserts that its business records demonstrate conclusively that the Company has not treated any persons differently on account of their race or Haitian ancestry, ethnicity or national origin, and that a large number of Haitian applicants received exactly the policy for which they applied, on the same terms and conditions as policies issued to persons of other races or national origin. In instances where a Haitian applicant was denied a policy or issued a policy different than that for which the applicant applied, the Company claims there are legitimate nondiscriminatory individual underwriting reasons to explain the Company s actions, such as the applicant s poor health or medical history, for example. Despite their differing positions on the merits of the Action, the Parties believe this Settlement is in the best interests of all concerned, and have therefore recommended this Settlement for approval by the Court 2. What is a class action? A class action is a lawsuit in which one or more persons sue on behalf of themselves and all other persons that have similar claims. In this case, the Plaintiff Marlene Joseph sued on behalf of herself and the Class, and has decided to settle the claims of all Class Members against the Company by entering into a written agreement entitled Stipulation of Settlement and Release. The persons on whose behalf the Settlement has been made are those persons within the Class which the Court preliminarily certified on December 5, The persons i.e., the Class Members who make up that Class are described in Paragraph 4, below. 2

3 The Settlement has already been preliminarily approved by the Court. Nevertheless, because the settlement of a class action determines the rights of all members of the class, the Court in which the Action is pending i.e., the United States District Court for the Southern District of Florida must give Final Approval to the Settlement before it can be effective. The phrase Final Approval, as used herein, is defined in Appendix A. The Court has conditionally certified the Class for settlement purposes only, so that members of the Class can be given this Class Notice and the opportunity to be heard in support of, or in opposition to, Final Approval of the Settlement. If the Settlement is not given Final Approval by the Court, or if it is terminated by the Parties, the Settlement will be void and the Action will proceed as if there had been no Settlement and no certification of the Class. 3. Who is the defendant in the Action? The defendant in the Action is Liberty National Life Insurance Company. In addition, any potential claims of Class Members against certain other entities and persons even though they are not named as defendants in the lawsuit will also be covered by the Settlement. Those persons and entities, along with Liberty National, are defined in Appendix A as the Company. 4. Why did I receive this Class Notice? Under the Federal Rules of Civil Procedure and the Court s orders, the Parties to the Settlement are required to send this Class Notice to all reasonably identifiable Class Members, in order to: (a) describe the claims against the Company; (b) describe the proposed Settlement; (c) describe the process by which the Court will consider whether to give Final Approval to the Settlement; (d) explain how the Final Approval of the Settlement will affect the legal rights of Class Members; and (e) tell Class Members what they must do if they wish to object to any terms of the Settlement. You received this Class Notice because it appears from the Company s records that you or one or more of your family members (or someone formerly living at this address) is a Haitian-born person who, while a legal resident of Florida, submitted a life insurance application to the Company between October 1, 2003 and June 30, Because you appear to fall within this group of persons, you may be one of the individuals (the Class Members ) on whose behalf the Settlement has been reached in the Action. The Company s records do not allow it to determine in all cases whether a person who submitted an application to the Company between October 1, 2003 and June 30, 2008 is black, or of Haitian birth or descent. Accordingly, you may have received this Class Notice in error, and some black Haitian-born applicants may not receive this Class 3

4 Notice at all. Therefore, all Class Members are also being informed of this Settlement through summary notices published in certain Florida newspapers. If you know someone who appears to fit the definition of a Class Member as described in this Class Notice, but who you believe has not received a copy of this notice, please tell that person to call the Liberty National Settlement Administration Center at (888) , so that they can obtain their own copy of this Class Notice. If the Settlement is given Final Approval, Class Members will automatically receive the prospective relief described in Paragraph 7 and, if you are a Class Member and you timely submit a properly completed Reapplication Form as described in Paragraph 16, you may be eligible to receive certain additional relief as described in Paragraph 7. For a complete understanding of the Settlement, including its terms, requirements and relief provisions, you are encouraged to review the Settlement and its accompanying exhibits in their entirety. A copy of the Settlement is available at or a copy can be obtained by calling the Liberty National Settlement Administration Center at (888) What is the status of the Action? Through this Action and prior related litigation, the Parties exchanged over forty thousand (40,000) pages of documents and over a dozen disks of computer data relating to their respective claims and defenses. Counsel for the Parties then agreed to mediate the claims at issue before a third-party mediator. As a result of that mediation, counsel for the Parties reached an agreement on the essential terms of a settlement. Through further negotiations, the Parties reached the proposed Settlement, which was presented to the Court for preliminary approval on October 20, The Court preliminarily approved the Settlement on December 5, As explained in Paragraph 18, a Fairness Hearing has now been set by the Court to consider whether to give Final Approval to the Settlement. If the Settlement is given Final Approval, the Court will not make any determination as to the merits of the claims against the Company or the Company s defenses to those claims. Instead, the Action will be dismissed on the merits and with prejudice, and the Settlement s terms will take effect. This Class Notice does not imply that there has been or would be any finding that the Company violated the law, or that any relief or recovery would be awarded against the Company if the claims against it were not settled. Nor does this Class Notice imply whether or not the Company could have successfully defended against the claims. Both sides have agreed to the Settlement in order to achieve an early and certain resolution to the Action, in a manner which provides specific and valuable benefits to the Class Members. 4

5 6. Will Class Members have to give up anything if the Settlement is given Final Approval? If the Settlement is given Final Approval, Class Members will each release all claims that fall within the definition of Released Claims set forth in Appendix A, as specified in the Release contained in the Settlement. Included in the Release are all Released Claims against any or all of the people and entities that are included in the definition of the Company given in Appendix A. If the Settlement is given Final Approval, the Action will then be dismissed on the merits and with prejudice. In general terms, Class Members will each release all of their tort, contract and other claims against the Company that are related in any way to known or unknown civil rights violations or acts of discrimination by the Company based on race, color, citizenship, national origin, alienage, foreign travel, ancestry or ethnicity. If the Settlement is given Final Approval, the claims that were or could have been asserted against the Company in the Action will also be dismissed with prejudice. The foregoing is only a general summary of the Release. The full terms, scope and effect of the Release are further discussed in Paragraph 12, and a complete copy of the Release itself is attached as Appendix B. Part B: SETTLEMENT BENEFITS 7. What relief will be offered under the Settlement? The Settlement offers Class Members both prospective and retroactive relief for the claims made in the Action. Prospective Relief. If given Final Approval, the Settlement will automatically provide for prospective relief, in the form of an injunction. That injunction will require the Company to, among other things: Cease and desist from using any underwriting criteria that limits the Face Amount of life insurance coverage that may be issued to an applicant who is a legal resident of Florida but a citizen of an At Risk Country (including Haiti), to that applicant s annual income for the most recent year; Cease and desist from asking for, or requiring, applicants who are legal residents of Florida but citizens of an At Risk Country (including Haiti) to supply any residency, citizenship, or employment documentation different from that required of applicants who are citizens of other foreign countries; Revise telephone interview scripts used by the Company (or by any third-party vendors the Company may employ) in conducting telephone interviews of 5

6 applicants who are legal residents of Florida but citizens of an At Risk Country (including Haiti), so that any questions asked during those interviews about an applicant s financial condition are substantially the same for all Florida applicants, regardless of their citizenship; and Treat life insurance applicants who are legal residents of Florida but also Haitian citizens the same as all other applicants who are citizens of another At Risk Country during the course of any telephone interview deemed necessary by the Company during the processing of a life insurance application. Retroactive Relief: If given Final Approval, the Settlement will also offer retroactive relief to Class Members through a Reapplication Form process. Details concerning how to obtain, complete and submit a Reapplication Form are provided in Paragraph 16. Through the Reapplication Form process, each Class Member who submitted a valid written application to the Company between October 1, 2003 and June 30, 2008, but who was not offered a policy or was offered a policy different than that for which he or she applied, may reapply for coverage with the Company. Through this process, a Class Member who properly completes and timely submits a Reapplication Form will have his or her original application reprocessed based on the information contained in that Class Member s original application and underwriting file, under the revised underwriting guidelines created by the Settlement. If a telephone interview is deemed necessary by the Company, the interview will also be conducted under the revised guidelines created by the Settlement. Any policy issued to a Class Member through this process shall be issued at the premium rates in effect at the time of the original application, and shall provide coverage on a prospective basis only from the date of the new policy, but shall provide coverage only if and so long as all premiums are paid in accordance with the written terms of the new policy. If a Class Member is issued a new policy through the Reapplication Form process, any policy previously issued by the Company to him or her pursuant to the original application will be considered cancelled and terminated. In addition, Class Members who were issued an ALX Policy (a phrase defined in Appendix A) in lieu of a different type of policy for which they originally applied, due solely to their disclosure of foreign travel plans to an At Risk Country, may be entitled to additional relief. To qualify for such additional relief, a Class Member must submit a Reapplication Form, and the reprocessing of that Reapplication Form under the revised guidelines created by the Settlement must reveal that the Class Member is entitled to the issuance of the policy originally sought. In such cases, the Class Member will be entitled to receive a waiver of premiums for the first six (6) months on the new policy, as well as credit to future premiums equal to any excess of the premium actually paid for the ALX Policy issued to him or her during the period the ALX Policy was in force over the premium that would have been charged the Class Member during the same period for the policy for which the Class Member originally applied. As described in Paragraph 16, a 6

7 Class Member entitled to such relief may alternatively request that the premium excess be paid directly to him or her, instead of being used to offset future premiums. Charitable Relief: In addition to providing such prospective and retroactive relief to the Class Members, the Settlement also calls for the Company to contribute a total of $50, to certain charitable organizations. The Settlement calls for that amount to be equally divided and paid to the Haitian Women of Miami, Inc., Sant La Haitian Neighborhood Center and the Little Haiti Housing Association, Inc. Additional Relief: The Settlement also calls for the Company to pay certain additional amounts under the Settlement, including without limitation, all administrative costs associated with administering the Settlement (including the costs of providing this Class Notice to you) and payment of any Attorneys Fees and Costs and Incentive Award awarded by the Court, subject to certain maximums described below. 8. Who will pay the costs of implementing and administering the Settlement? The Company has agreed to pay all costs of implementing and administering the Settlement, including the costs of printing and mailing this Class Notice and establishing the Liberty National Settlement Administration Center. Payment of these costs by the Company will be in addition to the prospective, retroactive and charitable relief provided under the Settlement. 9. What relief can I receive under the Settlement? If Final Approval is given to the Settlement, all Class Members will automatically receive the benefit of the prospective injunctive relief offered under the Settlement. If the Settlement is given Final Approval, Class Members may also be entitled to receive the retroactive relief through the Reapplication Form process described in Paragraph 7, which is designed to address the past handling of life insurance applications submitted between October 1, 2003 and June 30, 2008 by Haitian citizens legally residing in Florida. No other relief is offered to Class Members under the Settlement. What relief a particular Class Member might obtain through the Reapplication Form process will depend upon a number of factors including, without limitation, what decision the Company rendered with respect to a Class Member s original application, the type of policy (if any) that was issued by the Company to him or her, and the Class Member s health status and mortality risk as measured as of the time of his or her original application. To seek the retroactive relief offered by the Settlement, a Class Member must submit a Reapplication Form in accordance with the requirements described in Paragraph 16 and on the Reapplication Form itself. Class Members can obtain a Reapplication Form by visiting or by calling the Liberty National Settlement Administration Center at (888)

8 10. How and when will the relief offered under the Settlement take effect or be distributed? Upon Final Approval of the Settlement, the prospective relief offered by the Settlement will take immediate effect. The deadline for submission of Reapplication Forms for the retroactive relief offered by the Settlement is March 31, It is anticipated that initial determinations by the Company as to each Class Member s eligibility to receive retroactive relief will be made within forty-five (45) days following that deadline, and that the Company will as soon as practically possible thereafter send all Class Members who properly and timely submitted Reapplication Forms a written notice of the results of the Company s reprocessing decision and, if applicable, a copy of the new policy as issued by the Company. However, reprocessing of applications based on Reapplication Forms will not occur unless and until the Court gives Final Approval to the Settlement. Neither the Plaintiff nor the Company can accurately predict when (or whether) the Court will give Final Approval to the Settlement or when (or whether) such approval will become final. 11. Will the Settlement have any tax consequences? Your receipt of Reapplication Relief under the Settlement might have tax consequences for you. Those tax consequences may vary, depending on your individual circumstances. Plaintiff, the Company, Class Counsel and Defense Counsel cannot advise you about any tax consequences that might arise from your receipt of Reapplication Relief under the Settlement. You are encouraged to consult with your own tax advisor to determine whether any potential federal, state, local, foreign or other tax consequences will arise from your receipt of Reapplication Relief. Determination of any such tax consequences is solely the responsibility of each Class Member. PART C: LEGAL EFFECT OF THE SETTLEMENT 12. What will be the legal effect of the Settlement, if given Final Approval by the Court? If the Court gives Final Approval to the Settlement, the Parties will seek entry of a Final Order and Judgment that, among other things, will: Find that the Court has personal and continuing jurisdiction over all Class Members and subject matter jurisdiction to approve and enforce the Settlement; Approve the Settlement as fair, adequate and reasonable, consistent and in compliance will all applicable requirements of the Federal Rules of Civil Procedure, the United States Constitution (including the Due Process Clause), the 8

9 Rules of Court and any other applicable law, and as being in the best interests of each of the Parties and the Class Members; Re-affirm the certification of, and grant final certification to, the Class for settlement purposes; Dismiss the Action on the merits and with prejudice, meaning that no Class Member will be able to bring another lawsuit against the Company based upon the claims that have been raised or that could have been raised in the Action; Incorporate the Release as part of the Final Order and Judgment; Permanently bar Class Members from filing, commencing, prosecuting, intervening in, participating in (as class members or otherwise), or receiving any benefits or other relief from, any other lawsuit, in any state or federal court, arbitration, or administrative, regulatory or other proceeding or order in any jurisdiction that is based on or related to, directly or indirectly, in whole or in part, the Released Claims; Award Attorneys Fees and Expenses to Class Counsel and an Incentive Award to the Plaintiff, in amounts to be determined by the Court; Retain jurisdiction over all matters relating to the administration, consummation, enforcement, modification, construction and interpretation of the Settlement and Final Order and Judgment; and Enjoin Liberty National to comply with all terms of the Settlement and the Final Order and Judgment. If the Court gives Final Approval to the Settlement, the Release reproduced as Appendix B will be incorporated into the Court s Final Order and Judgment, and all Released Claims as defined in the Settlement will be deemed released effective as of the date of the Court s Final Order and Judgment. The Settlement fully describes the claims that Class Members will give up. A copy of the Settlement is available at or a copy can be obtained by calling the Liberty National Settlement Administration Center at (888) YOU ARE ENCOURAGED TO REVIEW CAREFULLY THE FULL SETTLEMENT, INCLUDING THE TERMS AND SCOPE OF THE RELEASE. 13. Can the parties terminate the Settlement or change its terms? Either the Plaintiff or the Company may terminate the Settlement if: (a) the Court (or any appellate court) rejects, materially modifies or denies approval of any portion of the Settlement that the Plaintiff or the Company believes to be material; (b) the Court (or 9

10 any appellate court) certifies a Class that is materially different from that defined in the Settlement; or (c) the Court (or any appellate court) does not enter or completely affirm, or alters or expands, any portion of the Final Order and Judgment, or any of the Court s findings of fact or conclusions of law, as mutually proposed by Defense Counsel and Class Counsel. The Company may also terminate the Settlement if the Court awards Attorneys Fees and Costs or an Incentive Award in amounts that exceeds the maximums agreed to by the Plaintiff and the Company under the Settlement. If the Settlement is terminated, the Plaintiff, the Company and all of the Class Members will be in the same position as they were in before the Settlement was executed, and the Settlement will have no legal effect, no Class will remain certified (conditionally or otherwise) and the Plaintiff and the Company will continue to litigate the Action in the Court. If the Settlement is terminated, Class Members will not receive any of the benefits offered by the Settlement. If the Settlement is given Final Approval, thereafter the Plaintiff and the Company will not be able to change the terms of the Settlement without further Court approval, unless the changes are consistent with the Final Order and Judgment and do not materially limit, or materially and adversely affect, the rights or obligations of the Parties and Class Members under the Settlement. 14. Does the Settlement have any current legal effect? Pending the Court s decision on whether to grant Final Approval to the Settlement, the Court has issued a preliminary injunction against all the Class Members, barring the initiation of any new, or the continued prosecution of any existing, lawsuit against the Company which involves claims that have been raised, or which could have been raised, in the Action. The full text of the Court s preliminary injunction reproduced from the Court s order granting preliminary approval to the Settlement follows: In order to preserve the Court s jurisdiction pending consideration of whether Final Approval should be given to the Settlement, and to avoid irreparable harm to the settlement process, and after balancing the equities and concluding that the Settlement is sufficiently fair, reasonable and adequate that it is due to be preliminarily approved and should be protected from collateral attack during the notice and Final Approval process, the Court hereby preliminarily enjoins: the Plaintiff and all Class Members from filing, commencing, prosecuting, intervening in, participating in as a party or class member, or otherwise pursing, or receiving any benefits or other relief from, any other lawsuit, arbitration, or administrative, regulatory or other proceeding or order in any jurisdiction, based on or relating to the Released Claims. See Liles v. Del Campo, 350 F.3d 742, 746 (8th Cir. 2003) (upholding an injunction which enjoined related federal 10

11 proceedings to preserve the settlement fund, to eliminate the risk of inconsistent or varying adjudications that would deplete the fund, to avoid confusion among the class members, and to save scarce judicial resources. ). If the Settlement is finally approved by the Court after the Fairness Hearing, the foregoing injunction shall be made permanent as to all Released Claims of the Class Members. A complete copy of the Court s order of preliminary approval is available at or a copy can be obtained by calling the Liberty National Settlement Administration Center at (888) PART D: YOUR LEGAL RIGHTS AND OPTIONS 15. What are my options under the Settlement? If you meet the definition of a Class Member described in Paragraph 4 (and as defined in Appendix A), you will automatically become a Class Member upon Final Approval of the Settlement by the Court. If Final Approval is given, you will not need to do anything to receive the prospective relief offered under the Settlement. However, to seek the retroactive relief offered by the Settlement, you will need to submit a Reapplication Form. The procedures for submitting a Reapplication Form are described in Paragraph 16. You may object to any aspect of the Court s exercise of jurisdiction in this matter, to the certification of the Class, or to any aspect or term of the Settlement. The procedures for objecting to the Settlement are described in Paragraph 17. Whether or not you submit an objection, if the Court gives Final Approval to the Settlement you will remain a Class Member and you will be bound by all aspects of the Settlement (including the Release contained therein) and by the terms of the Court s Final Order and Judgment. No Class Member has the option of seeking to be excluded from the Class or the Settlement. 16. If the Settlement is given Final Approval, what must I do to apply for retroactive relief? Upon Final Approval, all Class Members will automatically receive the prospective relief described in Paragraph 7. You will not need to do anything to receive the benefit of this prospective relief, which changes the way the Company will handle applications by persons of Haitian descent in the future. However, to seek the retroactive relief offered by the Settlement, you will need to fill out a Reapplication Form, and submit that form to the Liberty National Settlement Administration Center no later than March 31, 2009 (the Reapplication Form Deadline ). To obtain a Reapplication Form, please go to or call the Liberty National Settlement Administration Center at (888)

12 The Reapplication Form will contain instructions on how to complete the form, describe what information and documentation you must include with it, and explain where you must send the Reapplication Form and accompanying documents and information. Your Reapplication Form must be mailed sufficiently in advance that it is received by the Liberty National Settlement Administration Center by the Reapplication Form Deadline. Reapplication Forms received after the Reapplication Form Deadline, or which are not properly completed, or which lack the required supporting documentation and information, or which are submitted to an address different from that identified on the Reapplication Form, will be deemed invalid and/or untimely, and constitute a waiver of any rights to claim the retroactive relief offered by the Settlement. The Settlement anticipates that valid, complete and timely submitted Reapplication Forms will be processed by the Company within forty-five (45) days of the Reapplication Form Deadline, and that the Company will as soon as practically possible thereafter send all Class Members who properly and timely submitted Reapplication Forms a written notice of the results of the Company s reprocessing decisions and, if applicable, a copy of the new policy as issued by the Company. Such notices shall also contain, if and where applicable, information concerning the new policy and the premiums due under it, the amount of any premium credit or offset due the Class Member, and a postage-prepaid election card through which the Class Member (again, only if and where applicable) can elect to receive any premium refund due as a refund instead of as a future premium offset. As explained in Paragraph 10, however, the actual time to process the Reapplication Forms and to provide notice of the results of that process may vary depending upon when (and if) the Court gives Final Approval to the Settlement and that approval becomes final and no longer subject to appeal. The Settlement provides that any Class Member who believes the Company s reprocessing decisions to be in error may submit a written challenge to the Company regarding its decisions. Any such challenge must specify why a Class Member disagrees with the Company s reprocessing decision, and must be submitted in writing to the Liberty National Settlement Administration Center within thirty (30) days of the date of the Company s notice. Copies of the challenge must also be sent to Class Counsel and Defense Counsel. Class Members who do not timely challenge the Company s reprocessing decisions will be deemed to have consented to the Company s decisions. The Company will then have thirty (30) days from the date of the Class Member s challenge within which to review its reprocessing decision to determine whether that decision was correct and proper, and to provide notice to the Class Member of the Company s decision following review of its reprocessing decision. If a Class Member continues to disagree with the Company s reprocessing decision, the Class Member must within thirty (30) days of the date of the Company s notice concerning the results of its review of the Company s earlier reprocessing decision tender his or her challenge to the Court for final resolution. The decision of the Court on the reprocessing dispute will be final and binding on all concerned. A reminder regarding the procedures for 12

13 making such challenges will be included in the Company s written notice to Class Members of its initial reprocessing decisions. Further information regarding the procedures for making such a challenge is also contained in the Settlement itself. A copy of the complete Settlement is available at or a copy can be obtained by calling the Liberty National Settlement Administration Center at (888) What if I want to object to the Settlement? If you are a Class Member (as described in Paragraph 4), you may object to any aspect of the Action, any order entered by the Court (including the order conditionally certifying the Class), or any term of the Settlement. Such objection must be in writing. The procedures for submitting written objections are described below. A written objection (and any support for it) must be mailed sufficiently in advance that it is received by the Court, and by Class Counsel and Defense Counsel, no later than March 25, 2009 (the Objection Deadline ). The addresses for the Court, Class Counsel and Defense counsel are as follows: Adam A. Moskowitz KOZYAK TROPIN & THROCKMORTON, P.A Ponce de Leon, Suite 900 Coral Gables, Florida Michael R. Pennington BRADLEY ARANT ROSE & WHITE LLP One Federal Place 1819 Fifth Avenue North Birmingham, Alabama Clerk of Court Wilkie D. Ferguson, Jr. United States Courthouse 400 North Miami Avenue, 8th Floor Miami, FL If you hire an attorney in connection with making an objection, that attorney must also file with the Court a notice of appearance. The notice of appearance is to be received by the Court no later than the Objection Deadline. If you do hire your own attorney, you will be solely responsible for payment of any fees and expenses the attorney incurs on your behalf. Even if you hire your own attorney, you must still personally sign any objection filed on your behalf. Any objection is to contain a caption that identifies it as Objection to Class Settlement in Joseph, et al. v. Liberty Nat l Life Ins. Co. (case number CIV- Martinez/Brown). Any objection must also contain the following information: (a) the objecting party s fill name, address and telephone number; (b) all of the specific reason(s), if any, for the objection, including any legal support or evidence you want to bring to the Court s attention in support of your objection; and (c) identify, to the greatest extent possible, the date you applied for a policy with the Company, the name of the Agent or Agents with whom you dealt, and the policy number of any policy the Company 13

14 issued to you. The objection must also be personally signed by the objecting Class Member. If you submit an objection as set out above, you may choose to speak either in person or through an attorney hired at your own expense at the Fairness Hearing described in Paragraph 18, during which your objection will be considered by the Court. If you do not submit an objection to the Settlement as set out above, the Court in its discretion may decide not to allow you to speak at the Fairness Hearing. You are not required to speak at the Fairness Hearing, or even attend the Fairness Hearing, even if you submit an objection. Lack of attendance at the Fairness Hearing will not prevent the Court from considering your objection. However, if you (or your personal attorney) intend to speak at the Fairness Hearing, you (or your personal attorney) must file a notice of intent to appear. Any notice of intent to appear must be received by the Court no later than the Objection Deadline. If you do not object as described in this Class Notice, you will be deemed to have consented to the Court s certification of, and jurisdiction over, the Class, and to have released the Released Claims defined in the Settlement (which are reproduced from the Settlement in Appendix B). PART E: THE COURT S FAIRNESS HEARING 18. Will the Court hold a hearing about the Settlement? The Court has set a Fairness Hearing for April 24, 2009, beginning at 10:00 a.m. Eastern Standard Time, during which the Court will consider whether to give Final Approval to the Settlement. The hearing will take place in Courtroom 10-2 of the Wilkie D. Ferguson, Jr. United States Courthouse, located at 400 North Miami Avenue, Miami, Florida The Court may choose to change the date and/or time of the Fairness Hearing without further notice of any kind. If you intend to attend the hearing, you should confirm the date and time by calling the Clerk of Court at (305) In ruling on the Settlement, the Court will consider, among other things, whether to: (a) approve the Settlement as fair, reasonable and adequate; (b) finally certify the Class for settlement purposes only; and (c) grant Class Counsel s request for Attorneys Fees and Expenses and an Incentive Award to the Plaintiff for their time and effort related to this Action and the risks undertaken in prosecuting it. At the Fairness Hearing, the Court will also consider any objections submitted by Class Members. If the Court finds the Settlement to be fair, reasonable and adequate, the Court will enter a Final Order and Judgment granting Final Approval to the Settlement, granting final certification to the Class, and dismissing the Action with prejudice. 14

15 19. Can I attend to the Fairness Hearing? You may attend the Fairness Hearing, either in person or through an attorney hired at your own expense, but your attendance is not required. If you have submitted a written objection, either you or your attorney may appear at the Fairness Hearing to present the objection by following the procedures described in Paragraph 17, but you are not required to do so. 20. May I or my personal attorney speak at the Fairness Hearing? If you, or your personal attorney, wish to make a presentation to the Court during the Fairness Hearing, you (or your attorney) must file a written notice with the Court of your intention to appear. Any such notice must be received by the Court, Class Counsel and the Liberty National Settlement Administration Center no later than the Objection Deadline. If you (or your personal attorney) do not submit such a notice before the Objection Deadline, the Court may not allow you to speak at the Fairness Hearing. PART F: COUNSEL REPRESENTING CLASS MEMBERS 21. Who are the attorneys representing the Class Members? The Court has appointed a group of attorneys to represent the Class Members. Those attorneys include: (a) Adam M. Moskowitz of the law firm of Kozyak Tropin & Throckmorton, P.A.; (b) Jack Scarola of the law firm of Denney Scarola Barnhart & Shipley, P.A.; and (c) attorney Andre Pierre. All of these attorneys are collectively referred to as Class Counsel. Under the terms of the Settlement, Class Counsel will not charge any fees or expenses to Class Members if the Settlement is given Final Approval. If you want to be represented by your own counsel, you may hire an attorney at your own expense. 22. How will Class Counsel be paid? Class Counsel will file an application with the Court for an award of Attorneys Fees and Expenses incurred by the them in connection with their representation of the Plaintiff and Class Members in the Action. Class Counsel will also file an application with the Court for an Incentive Award to the Plaintiff, to compensate her for the effort and time she devoted to this Action. The Court will consider both of these applications at the Fairness Hearing described in Paragraph 18, and decide the amount (if any) of Attorneys Fees and Expenses to be awarded to Class Counsel and Incentive Award to be given to the Plaintiff. After Plaintiff and the Company agreed on all other terms of the Settlement, Class Counsel and the Company negotiated the amount of Attorneys Fees and Expenses and 15

16 Incentive Award that the Company will, subject to Court approval, pay to Class Counsel and the Plaintiff. Class Counsel have agreed that they will not apply for more than $475, in Attorneys Fees and Expenses, and no more than $10, as an Incentive Award to the Plaintiff. However, the Court will determine what amount should be awarded to Class Counsel and the Plaintiff as Attorneys Fees and Expenses and as an Incentive Award, but any such awards will be equal to or below these amounts. The Company has agreed that it will not oppose, and will pay, any Attorneys Fees and Expenses and Incentive Award awarded by the Court up to these amounts. As described in Paragraph 7, the Company will pay such Attorneys Fees and Expenses and Incentive Award in addition to the other relief that the Company has agreed to offer under the Settlement. Thus, any Attorneys Fees and Expenses and Incentive Award will not reduce the relief available to the Class Members, nor will Class Members be responsible for payment of any Attorneys Fees and Expenses or Incentive Award approved by the Court, if the Settlement is given Final Approval. 23. Do I need to hire my own attorney under the Settlement? Class Members do not need to hire their own attorneys, but may individually choose to do so. If you decide to hire your own attorney, you will be solely responsible for paying any fees or expenses your attorney incurs. If you do not hire your own attorney, you will be represented by Class Counsel. As described in Paragraph 21, if you choose to be represented by Class Counsel and if the Settlement is given Final Approval, you will not be responsible for any fees or expenses that Class Counsel incurs. PART G: GETTING MORE INFORMATION 24. Where can I get more information about the Settlement? This Class Notice merely summarizes the Settlement, and is not intended to completely describe all of the Settlement s terms and details. In the event of any conflict between this Class Notice and the Settlement, the Settlement will control. You are encouraged to review the complete Settlement and its accompanying exhibits. You may obtain a copy of the Settlement and certain documents relating to it by visiting or by calling the Liberty National Settlement Administration Center at (888) If you have questions about the Settlement or the Reapplication Form process, or if you wish to obtain a Reapplication Form, please call the Liberty National Settlement Administration Center at the number listed above. If you wish to communicate with or obtain information directly from Class Counsel, you do so by contacting Andre Pierre at 550 N.E. 124th Street, North Miami, Florida 33161, Telephone: (305) , Fascimile: (305)

17 You may also examine the Settlement, Court orders, and the other papers filed in the lawsuit at the Office of the Clerk of Court, located at the Wilkie D. Ferguson, Jr. United States Courthouse, 400 North Miami Avenue, 8th floor, Miami, Florida PLEASE DO NOT WRITE OR TELEPHONE THE COURT, OR THE CLERK S OFFICE, OR DEFENSE COUNSEL FOR INFORMATION CONCERNING THE SETTLEMENT. ANY QUESTIONS YOU MAY HAVE SHOULD BE DIRECTED TO THE LIBERTY NATIONAL SETTLEMENT ADMINISTRATION CENTER AT (888) , OR CLASS COUNSEL AT THE TELEPHONE NUMBERS LISTED IN PARAGRAPH 24. DATED: December 5, 2008 BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA 17

18 APPENDIX A The following definitions are reproduced verbatim from Section II of the Settlement. 1. Action means the lawsuit captioned Marlene Joseph, et al. v. Liberty Nat l Life Ins. Co., assigned case number CIV-Martinez/Brown, and pending in the United States District Court for the Southern District of Florida. 2. Agents means any of the Company s past or present sales representatives, agents, district managers, branch managers, sales managers or solicitors, and any other person who engages or has engaged in the sale, servicing or distribution of the life insurance policies issued by the Company. 3. ALX Policy refers to a specific type of ordinary life insurance policy issued by the Company that, among other things, is subject to a maximum allowable Face Amount of $15,000, and which provides for a limited benefit for death from natural causes during the first three years following the policy s issuance. Specifically, in the event of death from natural causes during the first three years, and ALX policy pays a benefit limited to the total premiums paid by the policyholder plus ten percent (10%) of that aggregate amount. In the event of accidental death even during the first three years of the policy, an ALX policy pays a death benefit equal to the full face amount of the policy. 4. At Risk Country means one of the foreign countries listed and identified in Exhibit A. 5. Attorneys Fees and Expenses means such funds as may be awarded by the Court to compensate Class Counsel (and any other attorneys for Plaintiff or Class Members in this Action) for all of the past, present and future attorneys fees, costs (including court costs), expenses and disbursements incurred by them, their experts, staff and consultants combined in connection with the Action. 18

19 6. Class means, for purposes of this Settlement only, all black Haitian-born persons who while legal residents of Florida submitted one or more applications for life insurance to Liberty National Life Insurance Company during the Class Period. The Class includes both naturalized United States citizens and persons who were not United States Citizens but who were legal residents of Florida when their applications were submitted to Liberty National during the Class Period. Excluded from the Class are: (a) all federal judges, their spouses, and persons within the third degree of relationship to them; (b) the Defendant, and its officers and directors; and (c) Messrs. Max Joseph, Caneste Succe and William St. Louis. 7. Class Counsel means: (a) Adam M. Moskowitz of the law firm of KOZYAK TROPIN & THROCKMORTON, P.A., 2525 Ponce de Leon Boulevard, Suite 900, Coral Gables, Florida 33134; (b) Jack Scarola of the law firm of SEARCY DENNEY SCAROLA BARNHART & SHIPLEY, P.A., 2139 Palm Beach Lakes Boulevard, West Palm Beach, Florida 33409; and (c) Andre Pierre, 550 N.E. 124th Street, North Miami, Florida Class Members means all those persons and entities who are members of the Class. 9. Class Notice means the legal notice of the terms of this Settlement as included in the Class Notice Package and Publication Notice. 10. Class Notice Package means the notice package, as approved in form and content by Class Counsel, Defense Counsel and the Court, and attached hereto as Exhibit B, to be provided to Class Members pursuant to the provisions of Section VI. 11. Class Period means the time period from October 1, 2003 through June 30,

20 12. Company means Liberty National Life Insurance Company, and all of its current or former parent corporations, subsidiaries, divisions, related and affiliated companies and entities, stockholders, directors, officers, employees, actuaries, attorneys, representatives and Agents, and all individuals or entities acting by, through, under or in concert with any of them. 13. Complaint means the Class Action Complaint, filed in the Action on September 16, 2008, a true and correct copy of which is attached hereto as Exhibit C. 14. Confidentiality Agreement means that document attached hereto as Exhibit D, which must be executed, as required by the Court s Order entered on October 17, 2008, by each Class Member and/or his or her personal attorneys to obtain access to the documents disclosed by the Company through discovery or settlement negotiations to Class Counsel, and which have been marked or identified by the Company as being confidential in nature. 15. Court means the United States District Court for the Southern District of Florida, acting pursuant to its jurisdiction over case number CIV-Martinez/Brown. 16. Defense Counsel means: (a) William J. Baxley and Joel E. Dillard of the law firm of BAXLEY DILLARD DAUPHIN MCKNIGHT & BARCLIFT, rd Avenue S, Birmingham, Alabama 35233; (b) Michael R. Pennington, Abdul K. Kallon, Robert J. Campbell and Charles M. Ferguson, Jr. of the law firm of BRADLEY ARANT ROSE & WHITE, LLP, One Federal Place, 1819 Fifth Avenue North, Birmingham, Alabama 35203; (c) Scott B. Smith of the law firm of BRADLEY ARANT ROSE & WHITE, LLP, 200 Clinton Avenue West, Huntsville, Alabama 35801; and (d) Lloyd R. Schwed and Douglas A. Kahle of the law firm of SCHWED MCGINLEY & KAHLE LLC, N Jog Road, Suite 101, Palm Beach Gardens, Florida

21 17. Effective Date means the date on which the Final Order and Judgment approving this Settlement becomes final. For purposes of this definition, the Final Order and Judgment shall become final: (a) If no appeal is taken from the Final Order and Judgment, on the date on which the time to appeal therefrom has expired; or (b) If any appeal is taken from the Final Order and Judgment, on the date on which all appeals therefrom, including petitions for rehearing or reargument, petitions for rehearing en banc and petitions for certiorari or any other form of review, have been finally disposed of in a manner resulting approval of the Settlement and affirmance of all of the material provisions of the Final Order and Judgment. 18. Face Amount means the amount stated in a life insurance policy as the basic death benefit to be paid upon the death of the insured. 19. Fairness Hearing means the hearing held by the Court to consider evidence and argument for the purpose of determining, among other things, whether: (a) (b) (c) This Settlement is fair, reasonable and adequate; The Settlement should be given Final Approval; and Certification of the Class should be made final. 20. Final Approval means entry by the Court of the Final Order and Judgment. 21. Final Order and Judgment means the order entered by the Court approving this Settlement, certifying the Class pursuant to Rule 23(b)(2) of the Federal Rules of Civil Procedure without the right of exclusion to Class Members, and the judgment entered pursuant to Rule 58 of the Federal Rules of Civil Procedure, which shall be in substantially the same form as is agreed to by the Parties and submitted to the Court at least five (5) days before the Fairness Hearing. 21