Overview
If you owned an insurance policy issued by the Savings Bank Life Insurance Company of Massachusetts ("SBLI") and held that policy (1) on January 1, 1992 ("Subclass"), and/or (2) on one or more of the following dates -- December 31, 2000, December 31, 2001 or December 31, 2002 -- and were entitled to dividends ("Main Class"), or if you are the policy beneficiary or eligible heir of such a person who has died, then you may be eligible to receive payment(s) from a class action Settlement.
A Court-approved settlement in the case Goldstein et al. v. Savings Bank Life Insurance Co. of Massachusetts, Civ. Action No. 98-2330-BLS1, has been reached on behalf of SBLI policyholders who Plaintiffs alleged were underpaid dividends. The lawsuit claimed that SBLI was required to pay higher annual dividends to policyholders when its surplus exceeded the allowable limit and that SBLI failed to pay Special Dividends. SBLI has denied any liability since the lawsuit began.
What Does the Settlement Provide?
The lawsuit has been settled for $18,675,330 in cash (an additional payment of $15,000,000 plus $3,675,330 that has already been paid to the Subclass), plus the costs of providing Notice and administering the Settlement. Main Class members will receive a minimum of five dollars ($5.00) per eligible policy but can receive more depending on the amount of calculated annual dividends deemed to have been paid on such policies in 2001 as determined in the following manner. First, the Court awarded Class Counsel, on behalf of all of Plaintiffs' Class Counsel, Attorneys' Fees plus their pro rata share of the interest earned by the Settlement Fund, as well as actual expenses and Class Representative awards as described in FAQ Answer No. 6. Second, the calculated annual policy dividends for each eligible policy will be used to determine each Main Class Member's initial share (Settlement Dividend) of the Net Settlement Fund. Third, the Settlement Dividend will also likely include a pro rata portion of those benefits initially set aside for policy beneficiaries or heirs who do not file claims. Fourth, Main Class members whose policies received annual dividends for 2000 or 2002 only (but not for 2001) are entitled to only the $5 minimum payment. Fifth, Subclass members (most of whom are also Main Class members) will receive a share of the Net Settlement Fund based on the amount of each Subclass Member's prior Special Dividends already received and other factors, as described in the Class Notice.
When Will Settlement Payments Be Made?
Settlement payment calculations are being finalized at this time, and Class Members and other Authorized Claimants can expect to receive correspondence regarding their settlement supplemental dividend payment in September 2010.
When Were Settlement Notices Mailed?
Notice to Class Members were mailed on March 5, 2010. If you have not received a Notice in the mail, but believe yourself to be a Member of the Class, please call the Settlement Administrator at 1 (800) 254-7328 to request a Notice or verify that you are a Class Member. For TTD assistance (Telecommunications device for the Deaf / Hearing Impaired) call (866) 454-7961.
What Are My Options?
Participate in the Settlement:
- For Current Policyholders of SBLI: Generally, if you are a current policyholder of SBLI, you can do nothing and you will still receive a payment if you received a Class Notice and are in SBLI’s records as (1) a policyholder entitled to receive dividends for the year 2000, 2001 and/or 2002 -- the minimum payment for which is $5.00, or (2) a policyholder on January 1, 1992 entitled to receive Special Dividends (those resulting from SBLI's reorganization); however, if you receive the Notice for the first time after contacting the Administrator and requesting a copy, a Settlement payment will not be sent to you automatically. Instead, work with the Administrator to determine whether you are a Class Member and, if so, you will be sent any payment to which you may be entitled.
- For Former Policyholders: If you owned a SBLI policy at the relevant periods of time, but the policy is no longer in force, or if you have moved or are moving from the address on the Notice, please either complete the Change of Address Form available here and return it to the Settlement Administrator as directed, or submit your new address by email to SBLISettlement@gardencitygroup.com. You will be entitled to payment whether or not you verify your address, but verifying your address will help ensure that payment is sent to the correct address.
- For
Policy Beneficiaries or Heirs: If you are a beneficiary of a deceased Class Member, or, where there is no known living beneficiary, you are an heir to a Class Member who has died, then you must have submitted an Affidavit of Beneficiary or Heir postmarked no later than May 3, 2010 to the Settlement Administrator to receive benefits. If the amount of relief the Settlement Administrator determines you would receive is likely to exceed $150, then you were required to complete a Proof of Claim Form. Any beneficiary who was required to complete the Proof of Claim Form and failed to do so by May 25, 2010 will receive a maximum payment of $150 (or less if the Settlement Dividend is less than $150).
Heirs of deceased Class Members may only participate where there is no known living beneficiary to the policy who has submitted a timely claim. Only one settlement payment will be made per policy.
Please be advised that the deadline for objecting to the Settlement has passed.
Under the Massachusetts Rule of Civil Procedure 23, you do not have the option to exclude yourself from the Settlement.
For more details, please consult the Class Notice sent to the Class.
Fairness Hearing
The Court held a hearing to decide whether to approve the proposed Settlement at 2:00 p.m. (EDT) on May 20, 2010, at the Suffolk County Courthouse, Courtroom 1309, 3 Pemberton Square, Boston, MA 02108. The Court approved the Settlement at that time as fair, reasonable and adequate. The Court also approved the payment of fees, costs and expenses to Plaintiffs’ Class Counsel.
| Date | Event |
|---|---|
| April 26, 2010 [Expired] |
Objection Deadline (filed) |
| May 3, 2010 [Expired] |
Claim By Affidavit For a Beneficiary(ies) and Heir(s) Deadline (postmarked) |
| May 20, 2010 at 2:00 p.m. (EDT) [Settlement Approved] |
Fairness Hearing |
| May 25, 2010 [Expired] |
Proof of Claim Form for Beneficiaries or Heirs (if required) Deadline (postmarked) No Claim Forms were required of Class Members; however, former policyholders should make sure their address on file with the Settlement Administrator is correct. If the Class Notice was sent to the correct address, and you are in the class, then the Settlement payment, if any, will be sent to that address. |
For more information, including information in Spanish, call toll-free (800) 254-7328 or email SBLISettlement@gardencitygroup.com. For TTD assistance, call (866) 454-7961.
