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 Donovan W. Frank of the United States District Court for the District of Minnesota (the “Court”) is in charge of this case. The case is called PHT Holding I LLC, et al. v. ReliaStar Life Insurance Company, Case No. 0:18-cv-2863-DWF-TNL (D. Minn.). The Plaintiffs are PHT Holding I LLC and Alice Curtis. The company they sued, ReliaStar Life Insurance Company, is called the Defendant.

The class action lawsuit alleges that ReliaStar Life Insurance Company ("Defendant") breached its contracts with certain policy owners. PHT Holding I LLC and Alice Curtis ("Plaintiffs") allege that Defendant breached the cost of insurance ("COI") Class Policies because Defendant imposed COI charges that were not based on Defendant’s expectations as to future mortality experience, and that Plaintiffs and members of the COI Class have been damaged as a result. Plaintiffs further allege that Defendant breached the Rider Class Policies by deducting Rider charges using rates that exceed the Rider rates expressly set forth in the Rider Class Policies. Defendant denies Plaintiffs’ claims and asserts multiple defenses; 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.

UL (including VUL) policies insured by ReliaStar written on the following policy forms which were assessed COI charges during the Class Period: 82-358, 82-500, 82-501, 82-502, 82-503, 82-508, 82-509, 83-187, 83-300, 83-301, 83-302, 83-303, 83-304, 83-305, 83-306, 83-307, 83-308, 83309, 10820, 10820PA, 10830, 10830 PA, 10840, 10890, 10910, 10980, 10980MN, 11021F, 11021FMN, 11060, 11060MN, 11060-U, 11060-P, 11065, 11260, 11260MN, 11265, 73853-0, and 614680 are affected, as well as UL policies insured by ReliaStar written on policy forms 10830 and 10910 which were assessed Waiver Rider charges during the Class Period. Excluded are owners of policies issued in Alaska, Arkansas, New Mexico, New York, Virginia, Washington, and Wyoming, policies listed on the Court’s docket 149-2 (filed May 28, 2021), and policies owned by ReliaStar, its officers and directors, members of their immediate families, and their heirs, successors or assigns. The Class Period is defined in FAQ 7.

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. All these people together are a class or class members. The individuals or companies the plaintiffs sue are called the defendants. One court resolves the issues for all class members, except those who have excluded themselves from (“opted out” of) the class.

The Court decided that the breach of contract claim against Defendant in this lawsuit can proceed as a class action because 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 Representatives’ claims are typical of the claims of the rest of the Class;
• the Class Representatives and the lawyers representing the Classes 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

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

Defendant denies any and all liability or wrongdoing of any sort with regard to its COI rates and rider charges. Instead, the parties 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 Plaintiffs or the Defendant. Plaintiffs and Class Counsel think the Settlement is in the best interests of the Class and is fair, reasonable, and adequate.

The Settlement resolves the claims of: 

The COI Class, which consists of, subject to the exceptions provided for in the answer to FAQ 8, all current and former owners of universal life policies issued on the following Policy Forms issued or insured by ReliaStar Life Insurance Company, or its predecessors, who were assessed COI charges during the Class Period: 82-358, 82-500, 82-501, 82-502, 82-503, 82-508, 82509, 83-187, 83-300, 83-301, 83-302, 83-303, 83-304, 83-305, 83-306, 83-307,  83-308, 83-309, 10820, 10820PA, 10830, 10830 PA, 10840, 10890, 10910, 10980, 10980MN, 11021F, 11021FMN, 11060, 11060MN, 11060-U, 11060-P, 11065, 11260, 11260MN, 11265, 73853-0, and 614680.

The Rider Class, which consists of, subject to the exception provided for in the answer to FAQ 8, all current and former owners of universal life policies issued on the following Policy Forms issued or insured by ReliaStar Life Insurance Company, or its predecessors, during the Class Period who were assessed Rider charges during the Class Period: 10830 and 10910.

The “Class Period” starts on the following dates through the date of final judgment in this action:

Yes. Excluded from the Class are current or former owners of the Policies issued in Alaska, Arkansas, New Mexico, New York, Virginia, Washington, and Wyoming; Defendant ReliaStar Life Insurance Company, its officers and directors, members of their immediate families, and their heirs, successors, or assign; and any person/entity who timely and properly opted out of the Class previously. Also excluded from the COI Class are current or former owners of the policies listed in Exhibit A of the Long Form Notice.

If you’re still not sure whether you are included in the Classes, please call the Settlement Administrator toll-free at 1-888-681-2090, or write to: ReliaStar COI Settlement Administrator, c/o JND Legal Administration, P.O. Box 91307, Seattle, WA 98111.

A Settlement Fund of $39 million will be established for Class Members. Defendant has also agreed to the following relief that has been quantified by a life insurance expert to be worth $8,757,089: Defendant will not: 

• Increase current COI rate scales for the Class Members’ policies for a period of seven years after the Court finally approves the Settlement or January 1, 2024, whichever is earlier.  
• Take any legal action (including asserting as an affirmative defense or counter-claim), or cause to take any legal action, that seeks to void, rescind, cancel, have declared void, or seeks to deny coverage under or deny a death claim for any Class Policy based on:  (1) an alleged lack of valid insurable interest under any applicable law or equitable principles; or (2) any misrepresentation allegedly made on the application for, or otherwise made in applying for the policy. 

After payment of Class Counsel’s fees (not to exceed $15,919,029.67 or 33 1/3% of the gross benefits provided to the Class), settlement administration expenses, Class Counsel’s expenses, and any Service Awards (up to $50,000 for each of the two Plaintiffs), the Settlement Administrator will distribute the remaining amounts to Class Members in proportion to their share of the overall overcharges collected from the Class through the Class Period, with each Class Member receiving a minimum distribution of $100. No portion of the Settlement Fund will be returned to Defendant.

More details are in a document called the Settlement Agreement, which is available at 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 will be mailed to 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.

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 gross benefits provided to the Class (that is, will not exceed 33 1/3% of $47,757,089 million, which is $15,919,029.67). 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 a Service Award up to $50,000 for each of the two Plaintiffs for their service as the representative on behalf of the 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.

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

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.

If you are a Class Member, you may object to the fairness, reasonableness, or adequacy of the proposed 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, Class Counsel, and Counsel for the Defendant. The Court can only approve or deny the Settlement. The Court cannot alter the terms of the Settlement. The written objection must include: 

• The case name and number (PHT Holding I LLC, et al. v. ReliaStar Life Insurance Company, Case No. 0:18-cv-2863-DWF-TNL); 
• 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 list of all persons who will be called to testify in support of the objection (if any);
• 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, Class Counsel, and Counsel for the Defendant at the addresses below by October 5, 2023.

No, you may not exclude yourself at this time. The instructions and deadline for excluding yourself were provided in a prior notice, and the deadline has now passed. 

If you previously excluded yourself by the August 8, 2022 deadline, you are not part of the Class and you will not receive any payment from the Settlement. If you did not previously exclude yourself by the August 8, 2022 deadline, you will be bound by any judgments in this case. 

The Court will hold a Fairness Hearing on November 16, 2023 at 12:00 p.m. CT at the Warren E. Burger Federal Building and United States Courthouse, 316 North Robert Street, St. Paul, Minnesota. 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 Service Award payment to Plaintiffs. 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. The date of the Fairness Hearing may change without further notice, so please check this website for updates.

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 Counsel for the Defendant listed in FAQ 17 no later than October 5, 2023.

The Notice summarizes the proposed Settlement. More details are in the Settlement Agreement available at the Important Documents page of this website. You can also call the Settlement Administrator toll-free at 1-888-681-2090, or write to:

ReliaStar COI Settlement Administrator
c/o JND Legal Administration
P.O. Box 91307
Seattle, WA 98111

PLEASE DO NOT CONTACT THE COURT