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

Judge David J. Novak of the United States District Court for the Eastern District of Virginia (the “Court”) is in charge of this case. The case is called Silverstein v. Genworth Life Insurance Co., Case No. 3:23-cv-684 (E.D. Va.). The individual who sued is Plaintiff Martin Silverstein. The company he sued, GLIC, is called the Defendant.

The class action lawsuit alleges that GLIC breached its contracts with certain policy owners. In 2019, policy owners were issued letters announcing that their insurance policies would be subject to COI rate increases. Plaintiff asserts those COI rate increases violated the terms of the policy holders’ contracts, and that Plaintiff and members of the Class have been damaged as a result. GLIC denies Plaintiff’s claims; however, both sides have agreed to the Settlement to avoid the risks, costs, and delays of further litigation, including an appeal, so that people affected will get a chance to receive compensation.

The Settlement Class consists of all owners of Gold and Gold II universal life insurance policies issued, insured, or assumed by GLIC, or its predecessors or successors, whose COI Rate Scales were changed as a result of the 2019 COI Rate Adjustment. Excluded from the Settlement Class are (i) Class Counsel and their employees; GLIC, its officers and directors and their immediate family members; the Court, the Court’s staff, and their immediate family members; and the heirs, successors, or assigns of any of the foregoing; and (ii) all Owners that submit a timely and valid written request to be excluded from the Settlement Class. Also excluded from the Class are owners of Gold and Gold II policies that have terminated as a result of the death of the insured on or before June 30, 2024, where the 2019 COI Rate Adjustment did not result in an Incremental COI Deduction before the death of the insured.

In a class action, a person(s) or entity(ies) called a “Class Representative(s)” sues on behalf of all individuals who have a similar claim. Here, Plaintiff Martin Silverstein represents other eligible Gold and Gold II policy owners 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 actions. One court resolves the issues for all class members, except for those who validly exclude themselves from the class.

In the Court’s Order Preliminarily Approving Class Action Settlement, the Court decided that the Settlement of the breach of contract claim against GLIC in this lawsuit can proceed as a class action because, at that point of the lawsuit, it met the requirements of Rule 23 of the Federal Rules of Civil Procedure, which governs class actions in federal court. The Court found that:

• There are numerous Class Members whose interests will be affected by this lawsuit;
• There are legal questions and facts that are common to each of them;
• The Class Representative’s claims are typical of the claims of the rest of the Class;
• The Class Representative and the lawyer representing the Class will fairly and adequately represent the interests of the Class;
• A class action would be a fair, efficient and superior way to resolve this lawsuit;
• The common legal questions and facts predominate over questions that affect only individual Class Members; and
• The Class is ascertainable because it is defined by identifiable objective criteria.

In certifying the Settlement Class, the Court appointed Susman Godfrey L.L.P. as Class Counsel. For more information, visit the Important Documents page.

GLIC denies any and all liability or wrongdoing of any sort with regard to the 2019 COI Rate Adjustment. Instead, the parties, with the assistance of Magistrate Judge Mark R. Colombell of the United States District Court for the Eastern District of Virginia, have agreed to the Settlement. The parties want to avoid the risks, costs, and delays of further litigation. The Court has not decided in favor of the Plaintiff or the Defendant. Plaintiff and Class Counsel think the Settlement is in the best interests of the Settlement Class and is fair, reasonable, and adequate.

The Settlement Class consists of all owners of Gold and Gold II universal life insurance policies issued, insured, or assumed by GLIC, or its predecessors or successors, whose COI Rate Scales were changed as a result of the 2019 COI Rate Adjustment. See Questions 3 and 8 for more information.

Yes. Excluded from the Settlement Class are (i) Class Counsel and their employees; GLIC, its officers and directors and their immediate family members; the Court, the Court’s staff, and their immediate family members; and the heirs, successors, or assigns of any of the foregoing; and (ii) all Owners that submit a timely and valid written request to be excluded from the Settlement Class. Also excluded from the Class are owners of Gold and Gold II policies that have terminated as a result of the death of the insured on or before June 30, 2024, where the 2019 COI Rate Adjustment did not result in an Incremental COI Deduction before the death of the insured.

In addition, policy owners have an opportunity to request exclusion from the Settlement, as described below. Policy owners that timely and validly request exclusion will not be part of the Settlement Class and will not be entitled to any of its benefits.

If an individual or entity is the Owner of both a Class Opt-Out and a policy in the Settlement Class, the Owner is included in the Settlement Class with respect to the policy in the Settlement Class but not with respect to any Class Opt-Outs. If an Owner (such as a securities intermediary or trustee) owns multiple policies on behalf of different principals, that Owner may stay in or opt-out of the Settlement Class separately for each policy.

If you are still not sure whether you are a Settlement Class Member, call the Settlement Administrator toll-free at 1-877-930-2439 or write to:

A Settlement Fund of $5.1 million will be established for Settlement Class Members. The Settlement Fund will be reduced proportionally if there are any opt outs from the Settlement Class. After payment of the cost to administer the Settlement Fund as well as attorneys’ fees and expenses and the payments to the Class Representative (see FAQ 18 below), the Settlement Administrator will distribute the remaining amounts to Settlement Class Members in proportion to their share of the overall COI overcharges collected from the Settlement Class through June 30, 2024. No portion of the Settlement Fund will be returned to GLIC.

GLIC has also agreed not to:

• Raise COI rates on policies covered by the Settlement until after October 25, 2029.
• Cancel, void, rescind, or deny a death claim submitted under the Settlement Class Members’ policies or contest the validity of a 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 are in the Settlement Agreement.

If you are a Settlement Class Member, unless you exclude yourself from the Settlement, you cannot sue, continue to sue, or be part of any other lawsuit against GLIC about the facts that arise from the same factual predicate of the claims released in this Settlement. It also means that all the decisions by the Court will bind you. The Released Claims and Released Parties are defined in the Settlement Agreement. They describe the legal claims that you give up if you stay in the Settlement. More details are available in the Settlement Agreement.

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

Payments will be mailed to Settlement Class Members after the Court grants “final approval” of the Settlement and after all appeals are resolved. If the Court approves the Settlement, there may be appeals. It is always uncertain whether these appeals can be resolved and resolving them can take time. Please be patient.

To exclude yourself (or “opt-out”) of the Settlement, you must complete and mail the Settlement Administrator a written request for exclusion. The exclusion request must include the following:

• Your full name, address, telephone number, and email address (if any);
• A statement says that you want to be excluded from the Settlement Class;
• The case name (Silverstein v. Genworth Life Insurance Co.);
• The policy number(s) to be excluded; and
• Your signature (or a valid power of attorney signature).

You must mail your exclusion request postmarked by December 10, 2024, to:

Silverstein v. Genworth Life Insurance Company
c/o JND Legal Administration
P.O. Box 91350
Seattle, WA 98111

If you own multiple policies that are included in the Settlement Class, you may request to exclude some policies from the Settlement Class while participating in the Settlement Class with respect to other policies.

IF YOU DO NOT EXCLUDE YOURSELF BY DECEMBER 10, 2024, YOU WILL REMAIN PART OF THE SETTLEMENT CLASS AND BE BOUND BY THE ORDERS OF THE COURT IN THIS LAWSUIT.

No. Unless you exclude yourself, you give up any right to sue GLIC for the claims that this Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Settlement to continue your own lawsuit. If you properly exclude yourself from the Settlement, you will not be bound by any orders or judgments entered in the Action relating to the Settlement.

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

Yes. The Court has appointed the following lawyers as “Class Counsel.”

The Court will determine how much Class Counsel will be paid for fees and expenses. Class Counsel will file a motion seeking an award for attorneys’ fees not to exceed 33 1/3% of the Final Settlement Fund, which equals the amount of the Settlement 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 $5.1 million, and Class Counsel will file a motion seeking an award from attorneys’ fees that will not exceed $1,699,999, which is 33 1/3% 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 of attorneys’ fees from that reduced amount that will also not exceed 33 1/3% of the Final Settlement Fund. For example, if the Final Settlement Fund is reduced to $4 million as a result of opt-outs, Class Counsel will seek an award for attorneys’ fees not to exceed $1,333,333, which is 33 1/3% of the Final Settlement Fund in this example. 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 Award up to $25,000 for Plaintiff (Martin Silverstein) for his service as the representative on behalf of the Settlement Class, to be paid from the Final Settlement Fund. You will not be responsible for direct payment of any of these fees, expenses, or awards.

If you stay in the Settlement Class, you do not need to hire your own lawyer to pursue the claims against GLIC 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.

Any Settlement Class Member who does not timely and properly opt out of the Settlement may object to the fairness, reasonableness, or adequacy of the proposed Settlement. Settlement Class Members who wish to object to any term of the Settlement must do so, in writing, by filing a written objection with the Court, and serving copies on Class Counsel and Counsel for Defendant. The written objection must include:

• Your full name, address, telephone number, and email address (if any);
• The policy number(s);
• A written statement of all grounds for the objection accompanied by any legal support for the objection (if any);
• Copies of any papers, briefs, or other documents upon which the objection is based;
• A statement of whether you intend to appear at the Fairness Hearing; and
• Your or your counsel’s signature.

If you intend to appear at the Fairness Hearing through counsel, the written objection must also state the identity of all attorneys representing you who will appear at the Fairness Hearing. Your objection, along with any supporting material you wish to submit, must be filed with the Office of the Court, with a copy served on Class Counsel and Counsel for Defendant by December 10, 2024, at the following addresses:

Objecting is simply telling the Court that you do not 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. A successful objection to the Settlement may mean that the objector and other members of the Class are not bound by the Settlement. Excluding yourself from the Settlement is telling the Court that you do not 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 will hold a Fairness Hearing on January 3, 2025 at 2:00 p.m. ET at the Spottswood W. Robinson III and Robert R. Merhige, Jr., Federal Courthouse, 701 East Broad Street, Richmond, VA 23219. At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider how much to pay and reimburse Class Counsel and any Incentive Award payment to Plaintiff. If there are objections, the Court will consider them at this time. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take.

No. But you or your own lawyer may attend at your expense. If you submit an objection, you do not 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.

Yes. You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your “Notice of Intent to Appear.” Your request must state your name, address, and telephone number, as well as the name, address, and telephone number of the person that will appear on your behalf. Your request must be filed with the Clerk of the Court and served on Class Counsel and Defendant’s Counsel no later than December 10, 2024.

Those who are eligible to receive a payment from the Settlement do not need to do anything to receive payment; you will automatically receive a payment from the Settlement. Unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against GLIC about the legal issues that arise from the same factual predicate of this case, ever again.

More details are in the Settlement Agreement. You can also call the Settlement Administrator toll-free at 1-877-930-2439, or write to:

Silverstein v. Genworth Life Insurance Company
c/o JND Legal Administration
P.O. Box 91350
Seattle, WA 98111

PLEASE DO NOT CONTACT THE COURT