You have a right to know about the proposed settlement and your rights and options under it before the Court decides whether to approve the Settlement.

The Actions, which have been consolidated together for purposes of the Settlement, are called In re: Lincoln National COI Litigation Case No. 2:16-cv-6605-GJP and In re: Lincoln National 2017 COI Rate Litigation, Case No. 2:17-cv-04150-GJP.

The individuals and entities who brought the Actions (collectively, “Plaintiffs”) are Robert Rombro and Harriet Kanter, as Trustees for the Alan Norman Kanter Trust; Ivan Mindlin, as Trustee of the Mindlin Irrevocable Trust, and Alan Mindlin, as the insured who funded the policy; Richard Weinstein, as an owner of a life insurance policy insuring the life of Jay Weinstein; Lowell Rauch and Carol Anne Rauch; Bharti R. Bharwani; Robert A. Zirinsky; US Life 1 Renditefonds GmbH & Co. Kg and US Life 2 Renditefonds GmbH & Co. Kg, as owners of life insurance policies insuring the life of Loucille Martindale; Milgrim Investments, LP; Barbara Valentine; Patricia A. Trinchero, as Trustee of the Trinchero 2015 Revocable Trust; Marshall Lewis Tutor; Arthur M. Kesselhaut and Warren M. Stanton as Trustees of the Kesselhaut Trust Agreement dated August 24, 1989; William Lin Patterson; and Barry Mukamal, as Trustee of the Mutual Benefits Keep Policy Trust, individually and as representatives of the Settlement Class, and any of their predecessors, assigns, successors-in-interest, representatives, employees, managers, partners, beneficiaries, and members.

The companies Plaintiffs sued are Defendants Lincoln National Corporation and The Lincoln National Life Insurance Company (collectively, “Lincoln”).

The Honorable Gerald J. Pappert of the United States District Court for the Eastern District of Pennsylvania is the judge assigned to the Actions.

In the Actions, Plaintiffs allege that Lincoln breached its contracts with certain policyowners and/or violated certain state consumer protection statutes, when, in or about August and September 2016 and June and July 2017, Lincoln sent them letters announcing that their insurance policies would be subject to cost of insurance ("COI") rate increases. Plaintiffs assert those COI rate increases violated the terms of the policyowners’ contracts, and that Plaintiffs and members of the Settlement Class have been damaged as a result. Lincoln denies these claims. However, Plaintiffs and Lincoln have agreed to the Settlement to avoid the risks, costs, and delays of further litigation (including an appeal) so that affected policyowners will get a chance to receive prompt compensation.

The Settlement Class certified by the Court as part of the Settlement approval process consists of all Owners of the following universal life insurance policies that were sold by Jefferson Pilot (which was acquired by Lincoln) or by Lincoln (after its acquisition of Jefferson Pilot), and later subjected to the COI Increases in August and September 2016 or June and July 2017:  JP Legend 300, JP Lifewriter Legend 100, 200, and 400 series, JP Legend 3000, LifeSight 30, LifeSight 31, LifeSight 32, JP UL 101, JP UL 102, JP UL 103, JP UL 130, JP UL 131, and Vision 20.

However, excluded from the Settlement Class are:

1. all Owners of Class Policies who submit a valid Opt-Out Request, but solely with respect to the Class Policy that is the subject of the Opt-Out Request;
2. the Honorable Gerald J. Pappert, United States District Court Judge of the Eastern District of Pennsylvania (or other Circuit, District, or Magistrate Judge presiding over the Action) and court personnel employed in Judge Pappert’s (or such other judge’s) chambers or courtroom;
3. Lincoln and its affiliates, parents, subsidiaries, successors, predecessors, and any entity in which Lincoln has a controlling interest;
4. any officer or director of Lincoln identified in the Form 10-K Annual Report of either Lincoln National Corporation or The Lincoln National Life Insurance Company, filed with the United States Securities and Exchange Commission for the fiscal year ended December 31, 2021;
5. those Owners of Class Policies who commence a lawsuit challenging the COI Increases through an individual action prior to the conclusion of the Opt-Out Period, but solely with respect to the Class Policy that is the subject of the aforementioned lawsuit; and
6. the legal representatives, successors, or assigns of any of the foregoing individuals or entities described in 1-5, but only in their capacity as legal representative, successor, or assignee.

In a class action, a group of individuals or entities referred to as the “Class Representatives” (here the Plaintiffs listed in FAQ 1), sue on behalf of all individuals or entities who have a similar claim, and together they are called the “class” or “class members.” Bringing a case, such as this one, as a class action allows resolution of many similar claims of persons and entities that might be economically too small to bring in individual lawsuits. One court resolves the issues for all class members, except for those who validly excluded themselves from the class.

Beginning on December 23, 2016, certain Plaintiffs filed several lawsuits against Lincoln related to the COI rate increase Lincoln announced in August and September 2016.  Those cases were consolidated into one matter, entitled In re: Lincoln National COI Litigation Case No.: 2:16-cv-6605-GJP (E.D.P.A.) (“2016 Action”). On June 8, 2017, Lincoln filed a motion to dismiss this complaint. Plaintiffs responded on July 28, 2017, and Lincoln replied on August 17, 2017. Following oral argument on August 22, 2017, the Court on September 11, 2017, denied the motion to dismiss. Plaintiffs then moved for class certification in the 2016 Action on June 21, 2019.

Meanwhile, on September 18, 2017, certain Plaintiffs filed lawsuits against Lincoln related to the COI rate increase Lincoln announced in June and July 2017.  Those cases were likewise consolidated into one matter, entitled In re: Lincoln National 2017 COI Rate Litigation 2:17-cv-04150-GJP (E.D.P.A.) (“2017 Action”). Plaintiff moved for class certification in the 2017 Action on November 23, 2020.

On August 9, 2022, the Court denied the motions for class certification that had been filed in both Actions. However, the Court allowed Plaintiffs to file new motions for class certification by February 21, 2023.  Following these Court rulings, the Parties agreed to mediate this matter before the Honorable Diane M. Welsh (Ret.), affiliated with JAMS.

For more information regarding the procedural history of the Actions, visit the Important Documents page on this website.

Lincoln denies any and all liability or wrongdoing of any sort with regard to the matters alleged in the Actions. The Court has not decided the claims in the Actions in favor of the Plaintiffs or Lincoln. But with the assistance of an experienced mediator, Plaintiffs and Lincoln were able to reach a compromise Settlement Agreement. Doing so avoids the risks, costs, and delays of further litigation for both sides. Plaintiffs and Class Counsel think the Settlement is in the best interests of the Settlement Class and is fair, reasonable, and adequate.

You are in the Settlement Class if you are an Owner of any of the following policies sold by Jefferson Pilot (which was acquired by Lincoln) or by Lincoln (after its acquisition of Jefferson Pilot), and later subjected to an increase in the COI Increases announced by Lincoln in 2016 or 2017:  JP Legend 300, JP Lifewriter Legend 100, 200, and 400 series, JP Legend 3000, LifeSight 30, LifeSight 31, LifeSight 32, JP UL 101, JP UL 102, JP UL 103, JP UL 130, JP UL 131, and Vision 20 life insurance policies, unless your policy is an Excluded Policy as defined by the Settlement Agreement.

Yes. Excluded from the Settlement Class are:

1. all Owners of Class Policies who submit a valid Opt-Out Request, but solely with respect to the Class Policy that is the subject of the Opt-Out Request;
2. the Honorable Gerald J. Pappert, United States District Court Judge of the Eastern District of Pennsylvania (or other Circuit, District, or Magistrate Judge presiding over the Action) and court personnel employed in Judge Pappert’s (or such other judge’s) chambers or courtroom;
3. Lincoln and its affiliates, parents, subsidiaries, successors, predecessors, and any entity in which Lincoln has a controlling interest;
4. any officer or director of Lincoln identified in the Form 10-K Annual Report of either Lincoln National Corporation or The Lincoln National Life Insurance Company, filed with the United States Securities and Exchange Commission for the fiscal year ended December 31, 2021;
5. those Owners of Class Policies who commence a lawsuit challenging the COI Increases through an individual action prior to the conclusion of the Opt-Out Period, but solely with respect to the Class Policy that is the subject of the aforementioned lawsuit;
6. the legal representatives, successors, or assigns of any of the individuals or entities described in 1-5, but only in their capacity as legal representative, successor, or assignee;

An individual or entity who owns multiple Class Policies may exclude themselves from the Settlement with respect to one or more such policies, while participating in the Settlement with respect to other Class Policies.

If you’re still not sure whether you are a Settlement Class Member, please visit the Important Documents page of this website, call the Settlement Administrator toll-free at 1-844-717-0630, or write to: 

Lincoln National COI Settlement Administrator
c/o JND Legal Administration
P.O. Box 91245
Seattle, WA 98111

Under the proposed Settlement, Lincoln has agreed to establish a cash fund containing up to $117,750,000 (the “Settlement Fund”) to be distributed among the Owners of the Final Settlement Class Policies. The Settlement Fund will be reduced by an amount equal to $117,750,000.00 multiplied by the sum of the Policy Claim Percentages for all Class Policies that are not Final Settlement Class Policies. After payment of the costs to administer the Settlement, attorneys’ fees and expenses, and any incentive and/or service awards to the Class Representatives (see FAQ 18), the Settlement Administrator will distribute the remaining amounts to the Owners of the Final Settlement Class Policies in proportion to their share of the overall Policy Claim Amounts collected from such policies through September 30, 2022.

The Policy Claim Amount for any Class Policy means the dollar amount based on the difference between: (a) the sum of the monthly deductions withdrawn from the policy value of the Class Policy for all months through September 30, 2022 in which the COI charge following the applicable COI Increase was greater than the COI charge under the COI rate schedule in effect immediately prior to the applicable COI Increase, and (b) the sum of the monthly deductions that would have been withdrawn from the policy value of the Class Policy for such months under the cost of insurance rate schedule in effect immediately prior to the COI Increase applicable to the Class Policy; provided however that the minimum Policy Claim Amount for each Class Policy will be $200.

The Policy Claim Percentage for any Class Policy means the percentage obtained by dividing the Policy Claim Amount for that Class Policy by the total of all Policy Claim Amounts.

No portion of the Settlement Fund will be returned to Lincoln.

Under the proposed Settlement, Lincoln has also agreed, on a going-forward basis:

• Not to raise COI rates on Final Settlement Class Policies for a period of five years following the date of the Order and Judgment approving the Settlement, unless ordered to do so by a state regulatory body.
• Not to void, rescind, cancel, have declared void, or seek to deny a death claim for any Final Settlement Class Policy based on: 
  • An alleged lack of valid insurable interest under any applicable law or equitable principles; or
  • Any misrepresentation allegedly made on or related to the application for, or otherwise made in applying for the policy.

More details concerning these benefits of the Settlement are in a document called the Settlement Agreement, which is available on the Important Documents page of this website.

If you are a Final Settlement Class Member in return for the benefits of the Settlement you cannot sue, continue to sue, or be part of any other lawsuit against Lincoln about the claims asserted in the Actions or that could have been asserted in the Actions arising out of the facts, transactions, events, occurrences or  acts that were either alleged in the Actions or otherwise put at issue in the Actions.  It also means that all the decisions by the Court with respect to the Settlement will bind you. The Released Claims and Released Parties are described in detail in the Settlement Agreement, which defines the legal claims that you give up if you stay in the Settlement Class. The Settlement Agreement is available on the Important Documents page of this website.

You will automatically receive a payment in the mail if you are entitled to one. No claims need to be filed.

Payments were mailed to eligible Class Members on April 8, 2024.

If you were mailed a notice on July 5, 2023, the deadline to exclude yourself was August 21, 2023, and has passed. If you were mailed a notice on January 17, 2024, the deadline to exclude yourself was March 4, 2024, and has passed.

No. Unless you exclude yourself, you give up any right to sue Lincoln for the claims that this Settlement resolves. If you have a pending lawsuit against Lincoln arising from the COI Increases or if you file such and serve such a lawsuit on Lincoln before the end of the Opt-Out Period, you are automatically excluded from the Settlement. If you properly exclude yourself from the Settlement, either by filing a proper request for exclusion or by commencing individual litigation against Lincoln, as described above, you will not be bound by any orders or judgments entered in the Actions relating to the Settlement.

No. You will not get any money or any other benefit from the Settlement if you exclude yourself.

Yes. The Court has appointed the following attorneys to serve as “Class Counsel”:

The Court will determine how much Class Counsel will be paid for fees and litigation expenses. Class Counsel will file their motion for Court approval of the payment of attorneys’ fees and expenses and incentive and/or service awards for the Plaintiffs no later than 14 days before the end of the Opt-Out/Objection Period.

Class Counsel will request an award for attorneys’ fees not to exceed 33% of the Final Settlement Fund, which equals the gross monetary fund (that is, the total cash fund) after any reduction in the amount of the Settlement Fund due to any opt-outs from the Settlement Class. For example, if no one opts out from the Settlement Class, then the Final Settlement Fund will equal the entire $117,750,000, and Class Counsel will file a motion seeking an award for attorneys’ fees that will not exceed $38,857,500, which is 33% of the Final Settlement Fund in this example. If there are opt-outs from the Settlement Class, then the Final Settlement Fund will be reduced on a pro-rata basis, and Class Counsel will seek an award for attorneys’ fees from that reduced amount that will also not exceed 33% of the Final Settlement Fund.

In addition to seeking an award for attorneys’ fees, Class Counsel will seek reimbursement for expenses incurred or to be incurred in connection with the Settlement, as well as an incentive and/or service award up to $15,000 for each Plaintiff for their service as the representatives on behalf of the Settlement Class.

You will not be responsible for direct payment of any of the foregoing fees, expenses, or awards.  They are with Court approval to be paid out of the Final Settlement Fund so that those costs are spread across all members of the Final Settlement Class as a whole.

If you stay in the Settlement Class, you do not need to hire your own lawyer to pursue the claims against Lincoln because Class Counsel is working on behalf of the Settlement Class. However, if you want to be represented by your own lawyer, you may hire one at your own expense and cost.

If you were mailed a notice on July 5, 2023, the deadline to object to the Settlement was August 21, 2023, and has passed. If you were mailed a notice on January 17, 2024, the deadline to object to the Settlement was March 4, 2024, and has passed.

Objecting is simply telling the Court that you don’t like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. The purpose of an objection to the Settlement is to persuade the Court not to approve the proposed Settlement.

Excluding yourself from the Settlement is telling the Court that you don’t want to be part of the Settlement. If you exclude yourself from the Settlement, you have no basis to object to the Settlement because it no longer affects you.

The Court held a Fairness Hearing on October 4, 2023, at the United States District Court for the Eastern District of Pennsylvania, James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, PA 10106. After the Fairness Hearing, the Court approved the Settlement and found it to be fair, reasonable, and adequate. The Court also approved Class Counsel’s fee and litigation expense requests, and Class Counsel’s request for incentive and/or service award payments to the Plaintiffs. If there are further objections to the settlement as a result of this Notice, the Court may consider them and may schedule a second Fairness Hearing related to those objections.

If a second Fairness Hearing is scheduled, no. But you or your own attorney may attend at your expense. If you submit an objection, you don’t have to come to Court to talk about it. As long as you filed and served your written objection on time to the proper addresses, the Court will consider it. 

If a second Fairness Hearing was scheduled, yes. Your request must have been filed with the Clerk of the Court no later than March 4, 2024.

If you do nothing, you were automatically included in the Final Settlement Class to receive a payment and the other benefits from the Settlement if entitled.  You will be bound by the releases included as part of the Settlement. You will not be able to bring a lawsuit against Lincoln or ever again be part of any other lawsuit against Lincoln about the COI Increases or the legal issues that were put at issue in the Actions unless you either (a) opted out or (b) have filed individual litigation against Lincoln concerning these matters before the end of the Opt-Out/Objection Period.

The notice summarizes the proposed Settlement. More details are in the Settlement Agreement, available on the Important Documents page. You can also call the Settlement Administrator toll-free at 1-844-717-0630, or write to:

Lincoln National COI Settlement Administrator
c/o JND Legal Administration
P.O. Box 91245
Seattle, WA 98111

PLEASE DO NOT CONTACT THE COURT