NOTICE OF CLASS ACTION AND PROPOSED SETTLEMENT

Transcription

1 November 1, 2010 United States District Court for the Central District of California Krummell, et al. v. North American Company for Life and Health Insurance Case No. CV NOTICE OF CLASS ACTION AND PROPOSED SETTLEMENT A federal district court authorized this Notice. This is not junk mail, an advertisement or a solicitation from a lawyer. This Notice is being mailed to each person who the records of North American Company for Life and Health Insurance indicate was the owner of record at the time coverage ended of a flexible premium adjustable life insurance policy issued by North American Company for Life and Health Insurance or Amoco Life Insurance Company under which coverage ended on or after March 6, 2004, due to the expiration of a Grace Period without a sufficient premium having been paid to continue coverage for an additional period, if coverage under that policy has not been reinstated as of October 18, (Subject to certain exceptions described on page 4). As such owner or the successor to such owner, if such owner is deceased, you may be entitled to benefits from a class action settlement. The settlement will provide an extended Reinstatement Period. It also provides a claims process under which such owners or successors to such owners of the policies at issue may recover certain monetary benefits, subject to certain requirements discussed in this Notice, if they are unable to obtain reinstatement of the policies. You should consult your own tax advisor regarding the tax consequences to you of the proposed settlement, including, without limitation, the tax consequences of any monetary benefits provided for under the proposed settlement, and any tax reporting obligations you may have. QUESTIONS? CALL ( FOR THE HEARING-IMPAIRED) FROM MONDAY THROUGH FRIDAY 10:00 A.M. (EASTERN) TO 8:00 P.M. (EASTERN) YOUR LEGAL RIGHTS ARE AFFECTED WHETHER YOU ACT OR DO NOT ACT. PLEASE READ THIS NOTICE CAREFULLY AND KEEP IT WITH YOUR POLICY. Terms used in this Notice that are capitalized are defined in the Settlement Agreement and Release, which was filed with the Court. This Notice is qualified in its entirety by reference to the Settlement Agreement and Release, the terms of which govern the Settlement. SUMMARY OF YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT APPLY FOR REINSTATEMENT OF YOUR POLICY SUBMIT A CLAIM FOR MONETARY BENEFITS EXCLUDE YOURSELF OBJECT DO NOTHING If the Settlement becomes Final, the Settlement will extend the period during which you may apply for reinstatement of your Qualifying Policy, subject to evidence of insurability and other conditions. If the Settlement becomes Final, the Settlement will provide certain Monetary Benefits for persons who submit a Claim Form and Eligibility Declaration with required statements on or before December 31, 2010 and satisfy various conditions, including having been denied reinstatement of coverage, and satisfying a Funding Test, all of which are described in more detail in this Notice. Decline Settlement Benefits. This is the only option that allows you to ever be part of any other lawsuit against North American as to claims related to those made in this case. Write to the Court about why you don t like the Settlement. You will still obtain the right to seek reinstatement for an additional period, subject to evidence of insurability and other conditions, but you will give up your other rights under this Settlement. - 1

2 Your rights and options and important deadlines are explained in this Notice. Please note, however, that this Notice is only a summary of the terms and conditions of the proposed Settlement. For a complete description of the terms and conditions of the proposed Settlement, you should read the agreement called the Settlement Agreement and Release, which was filed with the Court and is available at the following web site: A copy of the Settlement Agreement and Release also can be obtained by contacting the Settlement Administrator at the address and toll-free telephone numbers listed below under question 27 of this Notice. The Court in charge of this case still has to decide whether to approve the Settlement. No reinstatement pursuant to a Reinstatement Period extension will be granted and no Monetary Benefits will be awarded and paid until after the Court gives Final Approval of the Settlement and after any appeals are resolved. Please be patient. The parties have set up a website where information about the settlement and the status of the case may be obtained. The website is at TABLE OF CONTENTS BASIC INFORMATION Page 3 1. Why did I get this Notice Package? 2. What is this lawsuit about? 3. Why is this a class action? 4. Why is there a Settlement? WHO IS COVERED BY THE SETTLEMENT?. Page 4 5. How do I know if I am a member of the Lapsed Coverage Subclass? 6. Are there exceptions to being included in the Lapsed Coverage Subclass? 7. Can I participate in the Settlement if I live outside the United States? 8. I m still not sure if I am included in the Settlement. THE SETTLEMENT BENEFITS. Page 5 9. What benefits are provided by the Settlement? 10. What are the details of the Reinstatement Period extension? 11. What are the details of the Monetary Benefits? 12. When will benefits be available? THE RELEASE.. Page What do I give up if I remain in the Class? EXCLUSION FROM THE SETTLEMENT Page How do I get out of the Settlement? 15. f I do not exclude myself, can I sue North American later? 16. Will I still be able to obtain the Settlement benefits if I exclude myself? THE LAWYERS AND CLASS REPRESENTATIVES REPRESENTING YOU Page Do I have a lawyer in the case? 18. How will the lawyers be paid? 19. Who are the Class Representatives, and are they receiving any payments? OBJECTING TO THE SETTLEMENT.. Page How do I tell the Court if I do not like the Settlement? 21. What is the difference between objecting and excluding myself from the Settlement? THE COURT S FINAL APPROVAL HEARING.. Page When and where will the Court decide whether to approve the Settlement? 23. Do I have to come to the hearing? 24. May I speak at the hearing? IF YOU DO NOTHING. Page What happens if I do nothing at all? GETTING MORE INFORMATION. Page Are there more details about the Settlement? 27. How do I get more information? EXHIBIT 1 RELEASE AND WAIVER. Page

3 Please read this entire notice. This Notice contains important information about a class action lawsuit and your proposed Settlement benefits. It also explains that claims you may have against North American will be released as part of the Settlement. 1. Why did I get this Notice Package? BASIC INFORMATION This Notice relates to a lawsuit entitled John V.R. Krummell and Matthew W.T. Krummell, in their capacities as Co-Trustees of the Trust Estate of John D. Krummell, on behalf of themselves and all others similarly situated, vs. North American Company for Life and Health Insurance, Case No. CV , which is pending in the United States District Court for the Central District of California. You have received this Notice because the records of North American Company for Life and Health Insurance ( North American ) show that you are a member of the Lapsed Coverage Subclass under the Settlement Agreement and Release entered into in this lawsuit. The Lapsed Coverage Subclass includes the owners at the time coverage ended of flexible premium adjustable life insurance policies issued in the United States of America or its territories by North American or by Amoco Life Insurance Company ( Amoco ) and subsequently administered by North American, under which coverage ended on or after March 6, 2004, due to the expiration of a Grace Period without a sufficient premium having been paid to continue coverage for an additional period and that have not been reinstated as of October 18, 2010, and successors to such owners. Members of the Lapsed Coverage Subclass who do not request to be excluded from the Lapsed Coverage Subclass will be affected by the Settlement of the lawsuit if the Court gives final approval of the Settlement. The Court has given its preliminary approval to the Settlement, and it has ordered that this Notice be sent to you and all other Lapsed Coverage Subclass Members so that you may consider your options before the Court decides whether to give final approval of the Settlement. 2. What is this lawsuit about? This lawsuit was filed on behalf of the owner of a flexible premium adjustable life insurance policy which was issued by Amoco and subsequently assumed by North American. The party who sued North American is referred to as the plaintiff. In the lawsuit, the plaintiff alleged that North American engaged in a scheme to cause his policy to terminate by sending ambiguous and misleading written communications, including premium notices, grace notices, annual statements and other communications, to him, and by omitting information from these materials, thereby leading to the coverage under his policy lapsing and depriving him of valuable policy benefits. North American has denied the allegations with respect to its communications with the plaintiff and contends that its conduct was lawful at all times. North American contends that it made all required disclosures about the premiums necessary to maintain in force the coverage provided by the plaintiff s policy. 3. Why is this a class action? In a class action, one or more people, called Class Representatives (in this case John V.R. Krummell and Matthew W.T. Krummell, in their capacities as Co-Trustees of the Trust Estate of John D. Krummell) sued on behalf of people who have allegedly similar claims. If the Court certifies the case as a class action, the Court then resolves the dispute as to all members of the class, except for those who exclude themselves from the class. In this case, the parties have agreed to the certification of a Class for settlement purposes and the Court has preliminarily certified the case for settlement purposes as a class action pursuant to the Settlement Agreement and Release between the parties. The Class includes the members of the Lapsed Coverage Subclass as well as current owners of North American s flexible premium adjustable life insurance policies with coverage that was in force, which for purposes of the Settlement includes policies in a Grace Period, as of October 18, Why is there a Settlement? The Court has not decided in favor of the plaintiff or North American. Instead, both sides agreed to a Settlement in order to avoid the cost and uncertainty of further litigation and a trial. The Class Representatives and the attorneys for the Lapsed Coverage Subclass and the Class as a whole believe the Settlement is in the best interests of the members of the Lapsed Coverage Subclass and the Class as a whole

4 WHO IS COVERED BY THE SETTLEMENT? 5. How do I know if I am a member of the Lapsed Coverage Subclass? The Settlement is designed to benefit two groups of class members: (1) those who are current owners of policies with coverage that was in force, which for purposes of the Settlement includes policies in a Grace Period, as of October 18, 2010, and (2) those who were the owners at the time coverage ended, according to the records of North American, of policies under which coverage ended on or after March 6, 2004, due to the expiration of a Grace Period without a sufficient premium having been paid to continue coverage for an additional period and that has not been reinstated as of October 18, 2010 and successors to such owners, if such owners are deceased. The second group is called the Lapsed Coverage Subclass. This Notice is only being mailed to persons who are in the Lapsed Coverage Subclass. Under the Settlement Agreement, North American has already revised certain notices for the benefit of current owners of policies with coverage that was in force, which for purposes of the Settlement includes policies in a Grace Period, as of October 18, If you were the last owner of record of a life insurance policy administered by North American and the policy is or was one that provided for flexible premiums and allowed for changes in the specified amount, and if coverage ended on or after March 6, 2004, due to the expiration of a Grace Period without a sufficient premium having been paid to continue coverage for an additional period and the coverage has not been reinstated as of October 18, 2010, or you are the successor to such an owner, then you are a member of the Lapsed Coverage Subclass. If you are a Lapsed Coverage Subclass Member and do not submit a timely written request to be excluded from the Lapsed Coverage Subclass, then you are a member of the Lapsed Coverage Settlement Subclass. In order to pursue a Claim for Monetary Benefits, a Lapsed Coverage Settlement Subclass Member who is a successor to a person or entity who was the owner of a Qualifying Policy at the time coverage ended must submit an Eligibility Declaration stating that such owner is deceased, that he or she is the successor to such owner, and how he or she became the successor, including his or her relationship to such owner. 6. Are there expectations to being included in the Lapsed Coverage Subclass? Yes. The following persons and entities are not included in the Lapsed Coverage Subclass: any person or entity (1) who has previously released North American from the claims asserted in the Action; (2) whose rights and claims respecting a Class Policy generally, or the claims of whom that have been asserted in this Action, have been finally adjudicated in a court of law; (3) who is or was a member of the Board of Directors or an officer of North American at any time during the Class Period, as well as any affiliate, legal representative, attorney, successor, or assign of North American; or (4) any judge, justice, or judicial official presiding over the Action and any member of the staff or immediate family of such judge, justice or official; and (5) any persons hired to administer the terms of this Settlement. In addition, any flexible premium adjustable life insurance policy owned by a member of the class certified in WALTER KLEIN, ET AL., v. NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE, CASE NO. BC , SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES, CENTRAL DISTRICT, who were not excluded from the settlement in that action, is not included in the Lapsed Coverage Subclass. Finally, all persons or entities that receive this Notice and fall under the definition of Lapsed Coverage Subclass but submit a valid written request to be excluded from the Lapsed Coverage Subclass will thereafter not be included in the Lapsed Coverage Settlement Subclass. 7. Can I participate in the Settlement if I live outside the United States? Yes. A Lapsed Coverage Subclass Member who lives outside the United States of America or its territories can still participate in the Settlement. The only difference is that if that Lapsed Coverage Subclass Member wants to submit an item described in this Notice (for example, a Claim Form and Eligibility Declaration, a request for exclusion from the settlement, or an objection to the settlement), the Lapsed Coverage Subclass Member will not be required to send the item by U.S. mail. Instead, a Lapsed Coverage Subclass Member residing outside the United States of America or its territories may send the item by other governmental postal service or private international delivery service, but in each such case the item must bear a stamped postmark or similar mark showing when it was sent because all of the postmark deadlines explained in this Notice will still apply

5 8. I m still not sure if I am included in the Settlement. If you re not sure whether you are included in the Lapsed Coverage Subclass, call the NACOLAH Class Action Information Center at ( for the hearing-impaired) for more information. THE SETTLEMENT BENEFITS This Notice only provides a summary of the terms, conditions, and benefits of the proposed Settlement. For a complete description of the terms, conditions and benefits of the proposed Settlement, you should read the agreement called the Settlement Agreement and Release, which was filed with the Court and is available at the following web site: A copy of the Settlement Agreement and Release also can be obtained by contacting the Settlement Administrator at the address and toll-free telephone numbers listed below under question 27 of this Notice. 9. What benefits are provided by the Settlement? The Settlement provides an extension of the period during which a Lapsed Coverage Settlement Subclass Member may apply for reinstatement of his or her Qualifying Policy, subject to evidence of insurability and other conditions described below. The Settlement also provides certain Monetary Benefits for a Lapsed Coverage Settlement Subclass Member who submits a valid Claim Form and Eligibility Declaration on or before December 31, 2010 and satisfies various conditions, including having been denied reinstatement and satisfying a Funding Test, all of which are described in more detail below. A Reinstatement Application may be submitted at any time prior to the expiration of the extended Reinstatement Period, even if the deadline for applying for reinstatement as a condition to a Claim for Monetary Benefits has passed. 10. What are the details of the Reinstatement Period extension? You will obtain an extension of the period of time in which you may seek reinstatement of coverage under your Qualifying Policy, as described below and in the Settlement Agreement and Release, without doing anything. However, in order to obtain reinstatement, you must obtain a Reinstatement Application, complete the Reinstatement Application, submit it together with any required payment, and provide evidence of insurability satisfactory to North American. Evidence of insurability will involve information about the health of the Insured under the Qualifying Policy and may require medical examination or tests. If your Qualifying Policy is reinstated, you may then exercise options available under the contract as provided in your particular Qualifying Policy, such as changing the specified amount. How long is the extension of the period for applying for reinstatement? The Settlement provides that the Reinstatement Period specified in a Lapsed Coverage Settlement Subclass Member s Qualifying Policy will be extended by three months if the Reinstatement Period specified in the Qualifying Policy has not terminated as of the date of the Final Settlement Date. If the Reinstatement Period specified in the Qualifying Policy has already terminated as of the Final Settlement Date (including the situation in which the last day of the Reinstatement Period falls on this date), a Lapsed Coverage Settlement Subclass Member will be eligible to apply for reinstatement during a three-month period beginning on the day following the Final Settlement Date. The Final Settlement Date is the date after Court approval has been obtained and the Settlement becomes Final and not subject to further review or appeal. It is a date in the future and the exact date when the Settlement will become final, if it does, is not presently known. Who can apply for reinstatement? Each member of the Lapsed Coverage Settlement Subclass can apply for reinstatement of the coverage previously provided under the Lapsed Coverage Settlement Subclass Member s Qualifying Policy on the same basis set forth in such Qualifying Policy but the Insured under the Qualifying Policy must still be living. If the Insured under the Qualifying Policy is deceased (or if any of the Insureds under a First-to-Die, Last-to-Die, or Survivor Policy is deceased), then the Lapsed Coverage Settlement Subclass Member is not entitled to apply for reinstatement but is permitted to pursue a Claim for Monetary Benefits, as described below and in the Settlement Agreement and Release, without submitting a Reinstatement Application. How do I request a Reinstatement Application? Reinstatement Applications may be requested from North American by mailing the enclosed Reinstatement Application Request Card. Once a Reinstatement Application Request Card is received, North American will mail, within ten business - 5 -

6 days of receipt, a Reinstatement Application to you with respect to the Qualifying Policy together with a statement of the amount required to be paid with the Reinstatement Application. What are the conditions of reinstatement? All conditions of reinstatement set forth in the Qualifying Policy apply. This includes presenting evidence of insurability satisfactory to North American, which involves information about the health of the Insured under the Qualifying Policy and may require medical examination or tests, and tendering sufficient funds to cover payment of any amounts that may be required by the circumstances of the Qualifying Policy. The check submitted with the Reinstatement Application as a tender of funds to cover such payments will not be cashed until the Reinstatement Application is approved and reinstatement is granted. In some cases, North American may require the applicant for reinstatement to tender an amount equal to three times the minimum amount required to provide coverage for a one-month period beginning with the next monthly deduction day for the Qualifying Policy. If reinstatement is approved, any payment will be applied according to the terms of the Qualifying Policy as a premium payment as of the date the reinstatement is effective. No payment is guaranteed to provide coverage for any specific period following reinstatement, if reinstatement is granted, except as provided by the terms of the Qualifying Policy. If reinstatement is denied, no additional coverage will take effect and the check submitted as the tender of funds to cover any payments required with respect to potential reinstatement of the coverage under the Qualifying Policy will be returned, without interest unless otherwise required by law. When will the Reinstatement Application be processed? If the Reinstatement Period for the Qualifying Policy, without the extension, has already expired when the Reinstatement Application is received and if the Reinstatement Application is received prior to the Final Settlement Date, North American may postpone processing of the Reinstatement Application until after the Final Settlement Date, and a further payment may be required based upon a calculation made as of this date. In the event a further payment is required before the Reinstatement Application is processed, North American will notify the applicant and will defer processing until the further payment is received. If the Reinstatement Period for the Qualifying Policy has not expired when it is received, North American will process it in the ordinary course of business, but the normal processing time may be extended as a result of an increase in the number of Reinstatement Applications following this Settlement. Can I withdraw the Reinstatement Application? Reinstatement Applications may be withdrawn prior to approval, in which case the amount paid to North American with respect to such Reinstatement Applications will be refunded, without interest unless otherwise required by law. However, if the Reinstatement Application is withdrawn, any Claim for Monetary Benefits under the Settlement will be forfeited. How will North American determine whether to approve the Reinstatement Application? In assessing Reinstatement Applications, North American will make its determinations by applying the same standards and procedures that it would have applied in the absence of the Settlement, except with respect to the extension of the Reinstatement Period. What happens if in response to my Reinstatement Application North American offers coverage but it is for an underwriting classification associated with higher rates? You have the option of either accepting the coverage offered in an underwriting classification associated with higher rates or, subject to the other conditions relating to Claims for Monetary Benefits, pursuing a Claim for Monetary Benefits, but not both. If you elect to accept coverage, then you will no longer be eligible to pursue a Claim for Monetary Benefits. 11. What are the details of the Monetary Benefits? What are the basic requirements for Monetary Benefits? The requirements for Monetary Benefits are detailed below and in the Settlement Agreement and Release. A general summary of the requirements, which does not cover all situations, is as follows: 1. You must submit a Claim Form and Eligibility Declaration, properly completed, signed under penalty of perjury, and notarized, by first-class U. S. Mail, postage paid, with a postmark on or before December 31,

7 2. You must mail a Reinstatement Application by first-class U. S. Mail, postage paid, with a postmark on or before December 31, This requirement is excused if the Insured under the Qualifying Policy is deceased (or any of the Insureds are deceased under a First-to-Die, Last-to-Die Survivor Policy) as of December 31, IF YOU DO NOT SUBMIT A CLAIM FORM AND A REQUIRED REINSTATEMENT APPLICATION BY DECEMBER 31, 2010, YOU WILL NOT BE ELIGIBLE FOR MONETARY BENEFITS. 3. Your Reinstatement Application must be denied, or you must have declined coverage under modified terms, if such terms are offered by North American. No Lapsed Coverage Settlement Subclass Member may obtain (a) reinstated or modified coverage and (b) Monetary Benefits. 4. Your Eligibility Declaration must verify, under penalty of perjury, statements required by the Settlement Agreement as a condition to receipt of Monetary Benefits. In general, the statements are designed to identify claimants whose situations do not indicate that they understood additional payments were required in order to avoid termination of the coverage provided by the Qualifying Policy. 5. The statements in the Eligibility Declaration are not contradicted by North American s records. 6. Your Qualifying Policy must satisfy the Funding Test, which is described below. 7. You must not exclude yourself from the Settlement Class. Questions Regarding the Submission of a Reinstatement Application as a Prerequisite to Eligibility for Monetary Benefits How do I obtain a Reinstatement Application? Reinstatement Applications may be requested from North American by mailing the enclosed Reinstatement Application Request Card. Once a Reinstatement Application Request Card is received, North American will mail, within ten business days of receipt, a Reinstatement Application to you with respect to the Qualifying Policy together with a statement of the amount required to be paid with the Reinstatement Application. What is the deadline for submitting a Reinstatement Application to be eligible for Monetary Benefits? As one of the conditions to eligibility for Monetary Benefits, a properly completed Reinstatement Application must be (1) postmarked on or before December 31, 2010 and mailed by first-class U. S. Mail to the Settlement Administrator or (2) received by the Settlement Administrator on or before December 31, When do I need to submit a Reinstatement Application to be eligible for Monetary Benefits if the Reinstatement Period has already expired and the extension to apply for reinstatement does not begin until the day following the Final Settlement Date? You still need to submit a properly completed and timely Reinstatement Application that is either (1) postmarked on or before December 31, 2010 and mailed by first-class U. S. Mail to the Settlement Administrator or (2) received by the Settlement Administrator on or before December 31, However, North American may postpone processing of the Reinstatement Application until the three-month extension begins. Do I need to submit anything with my Reinstatement Application? Yes. You must submit evidence of insurability and tender sufficient funds to cover payment of any amounts that may be required based on the circumstances of the Qualifying Policy. The check submitted with the Reinstatement Application as a tender of funds to cover such payments will not be cashed until the Reinstatement Application is approved and reinstatement is granted. What is evidence of insurability? Evidence of insurability is information about the health of the Insured under the Qualifying Policy and may require medical examination or tests of the Insured. What if I recently submitted a Reinstatement Application? If the Reinstatement Application is still pending as of November 1, 2010, no further Reinstatement Application will be required as a condition to Monetary Benefits. If the Reinstatement Application was denied prior to or on November 1, 2010, then a new Reinstatement Application is required as a condition of Monetary Benefits, although the applicant is encouraged in such circumstance to advise North American of the prior denied Reinstatement Application

8 If I have already submitted a Reinstatement Application, when will the determination as to my eligibility for Monetary Benefits be made? The decision as to reinstatement may be made either before or after December 31, 2010, and a determination as to eligibility for Monetary Benefits will not be made until after such decision is made. What if the Insured is deceased and it is therefore not possible to obtain reinstatement? If the Insured under a Qualifying Policy (or either Insureds under First-to-Die, Last-to-Die, or Survivor Policy) is not living at 12:01 a.m. on December 31, 2010, then the submission of a Reinstatement Application will not be required in order to be eligible for Monetary Benefits. However, you must submit an official death certificate establishing that the Insured was deceased as of such time. No death certificate will be required if a Reinstatement Application is made after November 1, 2010, and such Reinstatement Application is denied prior to December 31, What if I have submitted a Reinstatement Application, and North American requests more information from me, do I need to submit the requested information within a certain amount of time? North American may require that you take any steps necessary within a reasonable time with respect to the processing of Reinstatement Applications. If you do not act within a reasonable time, as will be requested by written correspondence from North American, then the Reinstatement Application will be deemed withdrawn and any Claim for Monetary Benefits will be forfeited. Am I still eligible for a Claim for Monetary Benefits if the Reinstatement Application is approved? If a Reinstatement Application is approved on or after October 18, 2010, then no Monetary Benefits are available. If North American offers coverage in an underwriting classification associated with higher rates, you have the option of either accepting the coverage offered or pursuing a Claim for Monetary Benefits, but not both. If you elect to accept coverage, then you will no longer be eligible to pursue a Claim for Monetary Benefits. What happens if I withdraw my Reinstatement Application? If you withdraw your Reinstatement Application prior to approval, the amount paid to North American with respect to such Reinstatement Application will be refunded, without interest unless otherwise required by law, and your Claim for Monetary Benefits will be forfeited. Questions Regarding the Submission of a Claim Form and Eligibility Declaration For Monetary Benefits Eligibility Where can I find the Claim Form and Eligibility Declaration? A copy of the Claim Form and Eligibility Declaration is included with this Class Notice. You can also obtain a copy by contacting the Settlement Administrator at the phone number listed in question 27. What is the deadline for submitting the Claim Form and Eligibility Declaration to be eligible for Monetary Benefits? A properly completed, signed, and notarized Claim Form and Eligibility Declaration must be (1) postmarked on or before December 31, 2010 and mailed by first-class U. S. Mail to the Settlement Administrator or (2) received by the Settlement Administrator on or before December 31, If the Claim Form and Eligibility Declaration is not timely postmarked or received, or is incomplete or unsigned, it may be disregarded and no Monetary Benefits will be provided with respect to the Qualifying Policy. Do I need to sign the Claim Form and Eligibility Declaration? Yes. You must sign the Claim Form and Eligibility Declaration under penalty of perjury and you must also have it notarized. What statements do I need to verify as being true under penalty of perjury on the Eligibility Declaration in order to qualify for Monetary Benefits? In order to qualify for Monetary Benefits, if you were the owner of the Qualifying Policy at the time coverage ended, you must state, in the Eligibility Declaration under penalty of perjury, (1) that you were the owner of the Qualifying Policy at the time coverage ended, (2) that the statement in item A below is true, and (3) that either all four statements in item B.1 are true or the statement in item B.2 is true. If the owner of the Qualifying Policy at the time coverage ended is deceased and you are the successor to such owner, in order to qualify for Monetary Benefits, you must submit a true and correct copy of the official death certificate establishing - 8 -

9 such owner s death and you must state in the Eligibility Declaration (1) that such owner is deceased and that you are the successor to such owner, (2) how you became the successor and your relationship to such owner, (3) that the statement in item A below is true to the best of your knowledge, and (4) either all four statements in item B.1 are true to the best of your knowledge or the statement in item B.2 is true to the best of your knowledge. If North American has evidence that any of the statements are not true, then North American will deny any Claim for Monetary Benefits. A. Statement Required of All Claimants I did not understand that the Policy would terminate if the minimum amount set forth in a grace notice was not paid. B. Alternative Statements Required of All Claimants B.1 First alternative - All Statements Required 1. I did not obtain any projections of policy values to indicate the effect of any change in the assumed timing or amount of premium payments, interest rate, specified amount, or death benefit option, other than projections which depicted changes in the specified amount or death benefit option in association with a corresponding change in planned premium and projections provided together with the annual Statements of Policy Activity. 2. I did not increase the planned premium except in conjunction with a change in the specified amount, the purchase of a policy rider, or a change in the death benefit option. 3. I did not receive grace notices and thereafter pay at least the minimum amount set forth in the letter within the grace period on two or more occasions. 4. I understand that any actions by my broker or agent at my request or with my knowledge are attributable to me for purposes of this declaration. B.2 Second Alternative I mailed an application for reinstatement, including any required payment, within 45 days after the expiration of the Policy s final Grace Period, and promptly and diligently provided any further information requested or required in connection with such application. What happens if there are multiple owners or multiple successors? Multiple owners of a Qualifying Policy at the time coverage ended or multiple successors to such owners must provide information regarding their respective proportionate shares of ownership in the Qualifying Policy on their respective Claim Forms and Eligibility Declarations. Each such owner or successor to owner must separately and timely submit a completed Claim Form and Eligibility Declaration. If all such owners or successors to a Qualifying Policy do not timely submit completed Claim Forms and Eligibility Declarations, then no Monetary Benefits will be awarded with respect to that Qualifying Policy. If the Claims for Monetary Benefits of multiple owners of a Qualifying Policy at the time coverage ended or multiple successors to such owners are approved, North American will pay to each such owner of the Qualifying Policy an amount equal to their proportionate share of ownership in the Qualifying Policy. Any such owner or successor to owner submitting a Claim for Monetary Benefits with respect to a Qualifying Policy indemnifies and holds harmless North American against any claim asserted against North American by any other person claiming to have been entitled to Monetary Benefits as to the Qualifying Policy, provided that such owner or successor s liability will be limited to the amount of Monetary Benefits paid to such owner or successor. Question Regarding the Funding Test For Monetary Benefits Eligibility What is the Funding Test? If other requirements for Monetary Benefits are met, North American will consult its records and determine whether the Qualifying Policy satisfies the Funding Test. The Qualifying Policy will satisfy the Funding Test if and only if North American received payment of each planned premium, as indicated by North American s records, within a period beginning 21 days before and ending 30 days after the date scheduled for payment, for each of at least the last four years that the Qualifying Policy was in effect (or for each year the Qualifying Policy was in effect, if it was in effect for a period shorter than four years). In addition, the planned premium must have been greater than zero during each of the last four years that the policy was in effect (or for each year the policy was in effect, if it was in effect for a period shorter than four years)

10 Questions Regarding the Denial of a Claim for Monetary Benefits and Appeal of the Denial What are the grounds for denying a Claim for Monetary Benefits? North American may deny any Claim for Monetary Benefits as to any Qualifying Policy if (1) it has records or evidence that are inconsistent with, or contrary to, the statements made in the Claim Form and Eligibility Declaration, including if such records or evidence demonstrate that the facts a successor to a person or entity who was the owner of a Qualifying Policy at the time coverage ended states are correct to the best of his or her knowledge are not correct, (2) the Qualifying Policy does not satisfy the Funding Test, (3) a Reinstatement Application, if required, is not timely submitted or remains pending, (4) a death certificate, if required, has not been submitted to establish the Insured or the owner s death, (5) reinstatement of coverage under the Qualifying Policy has been granted, or (6) coverage has been offered at an underwriting classification associated with higher rates and you elect to accept such coverage. How will North American let me know that my Claim for Monetary Benefits has been denied? North American will provide the Settlement Administrator with a written statement explaining the reason(s) for the denial and the Settlement Administrator will mail a copy of the statement of denial to you. Can I appeal a denial of my Claim for Monetary Benefits? You can appeal a denial of your Claim for Monetary Benefits by written notification, which must be mailed to the Settlement Administrator within twenty-one (21) days of the mailing of the statement of denial by the Settlement Administrator to you. The written notification of appeal must provide your basis for disagreement with the denial of the Claim. The Settlement Administrator will forward the notification of appeal to North American. One or more of North American s managerial personnel will review the appeal and advise the Settlement Administrator in writing whether the denial has been reversed or affirmed and shall provide copies of any documents that support its decision. The Settlement Administrator will forward this information to you. Can I appeal if North American denies my Claim for Monetary Benefits again? If the denial is affirmed, then you may seek review by an Arbitrator. You can commence an arbitration by giving notice to the Settlement Administrator at the address listed in question 27. The Arbitrator will be jointly selected by Class Counsel and North American s counsel, and if they cannot agree on an Arbitrator, then by the Court. To initiate arbitration, you must submit a payment of $100 to the Settlement Administrator, which will pay for the fees of the selected Arbitrator. At the conclusion of the arbitration, the $100 fee will be refunded if and only if the Arbitrator finds the Claim for Monetary Benefits was reasonable in light of the requirements for Monetary Benefits or grants the Claim for Monetary Benefits. You may also submit a written statement of up to five pages in support of the Claim. The Settlement Administrator will provide copies of the completed Claim Form and Eligibility Declaration and copies of any papers provided by North American in support of its denial of the Claim to the Arbitrator. You must give notice to commence arbitration accompanied by your payment of $100 and also submit the written statement of up to five pages in support of your Claim for Monetary Benefits within 30 days after the mailing by the Settlement Administrator of North American s written decision as to your appeal to you. The Arbitrator will base his or her decision solely on review of the documents presented to him or her and will issue a written decision stating the principal reason for his or her decision. The decision of the arbitrator is final and non-reviewable. With the exception of the $100 fee paid to initiate the arbitration, all costs and fees of the Arbitrator will be paid by North American. Question Regarding the Amount of Monetary Benefits for an Approved Claim If my Claim for Monetary Benefits is approved, how much will I receive? If a Claim for Monetary Benefits is approved, then North American will pay you the greater of the following two amounts: 1% of the total premiums received by North American with respect to the Qualifying Policy, or 5% of the excess, if any, of the total premiums received by North American with respect to the Qualifying Policy over the Hypothetical Term Cost of the coverage provided by the Qualifying Policy while it was in effect

11 The Hypothetical Term Cost of the coverage provided by the Qualifying Policy while it was in effect will be computed as provided in Exhibit H to the Settlement Agreement. The computation generally involves what the hypothetical term cost of coverage would have been for a Qualifying Policy using rates agreed upon for purposes of this Settlement. The rates are generally derived from rates charged on certain term policies offered by an affiliate of North American and actually issued during the 1990 s and as recently as When will benefits be available? If the Court issues a Final Approval Order of the Settlement and there are no appeals or any appeals are denied so that the Settlement becomes Final and not subject to further review, then North American will process the pending Claims for Monetary Benefits as soon as practicable and pay such Monetary Benefits as are provided by the Settlement Agreement and Release. However, no Monetary Benefits will be paid as to a Qualifying Policy while a Reinstatement Application as to such Qualifying Policy is pending. North American will process Reinstatement Applications in accordance with its customary business practices, but the normal processing time may be extended as a result of an increase in the number of Reinstatement Applications following this Settlement. If your Claim for Monetary Benefits is approved, you may be required to provide, upon request, North American with such forms relating to tax reporting as may reasonably be requested by North American in light of its obligations under applicable tax laws and regulations before receiving payment. 13. What do I give up if I remain in the Class? THE RELEASE If you are in the Lapsed Coverage Settlement Subclass, unless you properly exclude yourself as described in question 14 below, you are staying in the Lapsed Coverage Settlement Subclass, and (1) that means you and your attorneys, spouses, beneficiaries of your trusts, executors, conservators, personal representatives, wards, heirs, predecessors, successors, affiliates, agents and assigns cannot sue, continue to sue, or be part of or receive any benefits in or from any other lawsuit, administrative or regulatory proceeding, order, or other legal proceeding anywhere against North American and/or the other released parties included as Releasees under the Settlement Agreement and Release, about (i) any communications that relate in any way to premiums paid on or to be paid under the Qualifying Policies or amounts necessary to maintain coverage in force under the Qualifying Policies, including any alleged omissions from such communications, or (ii) any failure to provide any communication alleged to have been necessary or required, or that concern, refer or relate to, are based upon, or arise out of, in whole or in part, the facts alleged in the Action; and (2) that you and your attorneys, spouses, beneficiaries of your trusts, executors, conservators, personal representatives, wards, heirs, predecessors, successors, affiliates, agents and assigns give up, or release the following: (i) any and all claims arising out of any and all acts, failures to act, omissions, facts, matters, events, transactions, occurrences, or oral or written statements or representations made or allegedly made in connection with, or relating to, the Settlement; and, (ii) any and all claims for attorneys fees, costs, or disbursements incurred by Class Counsel or by Plaintiffs or by the Lapsed Coverage Settlement Subclass Members, or any of them, in connection with or related in any manner to the Action, the settlement of the Action or the administration of the Settlement, except to the extent otherwise specified in the Settlement Agreement and Release. Excerpts from the Settlement Agreement and Release with respect to the definition of Class Claims, as set forth in Section 1.11 of the Settlement Agreement and Release, and the language of the Release, as set forth in Section 7 of the Settlement Agreement and Release, are set forth in Exhibit 1 to this Notice. EXCLUSION FROM THE SETTLEMENT If you don t want to be eligible for any benefits from this Settlement, or you want to keep the right to sue or continue to sue North American and/or the other Releasees on your own about the claims and legal issues settled in this case, then you must take steps to get out of the Settlement. This is called excluding yourself or is sometimes referred to as opting out of the Class. 14. How do I get out of the Settlement? To exclude yourself from the Settlement, you must send a letter by first-class U.S. mail saying that you want to be excluded from the Lapsed Coverage Subclass in Krummell, et al. v. North American Company for Life and Health Insurance. You

12 must include your name, address, telephone number, Policy number (which can be found on the enclosed Claim Form and Eligibility Declaration), your signature, and a statement that you wish to be excluded. You must submit a separate exclusion request for each Qualifying Policy. You must submit your exclusion request by first-class U.S. mail postmarked no later than December 31, 2010, to: NACOLAH Class Action Information Center c/o Gilardi & Co. LLC P.O. Box 8090 San Rafael, CA You can t exclude yourself by telephone or by . If you validly exclude yourself, you will not be eligible for any Settlement benefits, and you cannot object to the Settlement. If you validly exclude yourself, the Settlement will not affect your rights to sue North American and/or the other Releasees, and you will not be legally bound by anything else that happens under the Settlement. If a Qualifying Policy has multiple owners at the time coverage ended or successors to such owners, and one Lapsed Coverage Subclass Member submits a timely and proper request for exclusion with respect to the Qualifying Policy, then all other such owners or successors to owners will be deemed to have excluded themselves with respect to that Qualifying Policy. 15. If I do not exclude myself, can I sue North American later? No. Unless you validly exclude yourself, you give up the right to sue North American and other parties included as Releasees under the Settlement Agreement and Release for the claims and legal issues that this Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit about this Notice immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion postmark deadline is December 31, Will I still be able to obtain the Settlement benefits if I exclude myself? No. If you exclude yourself, you will not be entitled to receive an extension to apply for reinstatement. In addition, do not send in the Claim Form and Eligibility Declaration seeking any Monetary Benefits because you will not be entitled to any benefits from this Settlement THE LAWYERS AND CLASS REPRESENTATIVES REPRESENTING YOU 17. Do I have a lawyer in the case? Yes. Larry A. Sackey, Esq. of the Law Office of Larry A. Sackey, Robert Horn, Esq. and Joe Kronawitter, Esq. of Horn Aylward & Bandy, LLC, and Teresa K. Breman, Esq. of Breman Law Offices represent the Class. Together, these lawyers are called Class Counsel. You will not be charged for the services of these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. 18. How will the lawyers be paid? Class Counsel will ask the Court for an award of attorneys fees and costs in the amount of $930,000. As part of this request, Class Counsel will also ask that the Court award the Class Representatives incentive payments in the total amount of $25,000, to be paid from the attorneys fees and costs award. The total amount of attorneys fees and costs awarded to Class Counsel is dependent on the amount of any incentive award to the Class Representatives that the Court may authorize. In no circumstances will North American be required to pay more than $930,000 for attorneys fees and costs and incentive payments combined. These amounts will not come out of the funds for the specific Monetary Benefits awarded to Lapsed Coverage Settlement Subclass Members. North American also will separately pay certain costs to administer the Settlement. 19. Who are the Class Representatives, and are they receiving any payments? The Class Representatives are John V.R. Krummell and Matthew W.T. Krummell. John V.R. Krummell and Matthew W.T. Krummell are the sons of John D. Krummell, who is deceased, and are acting in their capacities as the co-trustees of the Trust Estate of John D. Krummell. Class Counsel will ask that the Court award the Class Representatives incentive payments in the total amount of $25,000, in recognition for their substantial services, time and effort spent in this matter. The incentive payments will be paid from the attorneys fees and costs award, which will not exceed $930,000. The Court may award less than these amounts. North

13 American will pay the incentive payment that the Court awards, up to the foregoing amount. This amount will not come out of the funds for the specific Monetary Benefits awarded to Lapsed Coverage Settlement Subclass Members. OBJECTING TO THE SETTLEMENT You can tell the Court that you don t agree with the settlement or some part of it. 20. How do I tell the Court if I do not like the Settlement? If you are a Class Member, you can object to the Settlement if you don t like any part of it. The Court will consider your views in connection with the Final Approval Hearing described below. To object, you must submit your objection in writing, stating that you object to the proposed settlement of Krummell, et al. v. North American Company for Life and Health Insurance. Your written objection must include your name, address, telephone number, Qualifying Policy number (which can be found on the enclosed Claim Form and Eligibility Declaration), your signature, a statement stating that you have not requested to be excluded from the Lapsed Coverage Subclass, the reasons you object to the settlement, and any documents that you wish to submit in support of your position. Your written objection must be submitted by first-class U.S. mail to each of the following places, postmarked no later than December 31, 2010: CLASS COUNSEL Joe Kronawitter Horn, Aylward & Bandy, LLC 2600 Grand Boulevard, Suite 1100 Kansas City, MO NORTH AMERICAN S COUNSEL William H. Higgins Reed Smith LLP 101 Second Street, Suite 1800 San Francisco, CA If you do not timely submit an objection in accordance with the above requirements, you will not be treated as having filed a valid objection to the proposed Settlement. If you hire an attorney for the purpose of objecting to any aspect of the proposed Settlement, the attorney must file a notice of appearance with the Clerk of the Court no later than January 17, 2011 and send a copy of such notice of appearance to Class Counsel and North American s Counsel at the addresses listed above by first-class U.S. mail postmarked no later than January 17, What is the difference between objecting and excluding myself from the Settlement? Objecting is telling the Court that you don t like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you don t want to be part of the Settlement Class and the proposed Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. THE COURT S FINAL APPROVAL HEARING The Court will hold a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak, but you don t have to. 22. When and where will the Court decide whether to approve the Settlement? The Court will hold a Final Approval Hearing on February 14, 2011, at 10:00 A.M., at the United States Courthouse, Spring Street, Los Angeles, California in the courtroom of the Honorable Christina A. Snyder, Courtroom 5 (2 nd Floor), 312 N. Spring Street, Los Angeles, California At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Snyder may listen to people who, prior to the hearing, properly and timely requested in writing to speak at the hearing, as described under question 24 of this Notice. The Court also may decide how much Class Counsel will be paid and the amount of any payments to the Class Representatives. At or following the hearing, the Court will decide whether to approve the Settlement, but we do not know exactly when that decision will be made. If the hearing date or time is changed, notice will be posted on the Settlement Website, but no other notice will be given. 23. Do I have to come to the hearing? No. Class Counsel will answer questions Judge Snyder may have, but you are welcome to come at your own expense. You also may pay your own lawyer to attend the hearing if you so choose. If you submit a written objection, you don t have to come to Court to talk about it and you don t have to send your own lawyer. As long as you properly submitted your written objection and it was postmarked on time, the Court will consider it

14 24. May I speak at the hearing? You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must do two things. First, you must object to the Settlement in accordance with the procedures described above under question 20. Second, you must send a letter to the Court stating that it is your Notice of Intention to Appear in Krummell, et al. v. North American Company for Life and Health Insurance. You must include your name, address, telephone number, and your signature on your Notice of Intention to Appear. Your Notice of Intention to Appear must be submitted by first-class U.S. mail to Class Counsel and North American s Counsel, at their respective addresses given under question 20, and must be postmarked and received by the Court no later than February 4, You cannot speak at the hearing if you do not follow these procedures, or if you exclude yourself. 25. What happens if I do nothing at all? IF YOU DO NOTHING If you do nothing in response to this Notice and the Insured under the Qualifying Policy is living, you will receive the extension to submit a Reinstatement Application as described above if the Settlement becomes Final. However, you will not be eligible to submit a Claim for Monetary Benefits. In addition, if you do nothing, you will give up all rights ever to bring a lawsuit or action, to continue with a pending lawsuit or action, or to be part of any other lawsuit or action against North American and other persons and entities included as Releasees under the Settlement Agreement and Release about the claims and legal issues covered and resolved by the Settlement, if the Settlement becomes Final. 26. Are there more details about the Settlement? GETTING MORE INFORMATION Yes. This Notice and accompanying documents provide only a summary of the proposed Settlement. More details are contained in an agreement between the Plaintiffs and the North American called the Settlement Agreement and Release. The full Settlement Agreement and Release is on file with the Clerk of Court. You can obtain a copy of the Settlement Agreement and Release by writing to the Settlement Administrator, by calling the toll-free information center, or by visiting the web site that has been set up for this Settlement. The address, toll-free numbers, and web site address for obtaining the Settlement Agreement and Release are given below under question 27. For more details concerning the matters involved in this case, the Plaintiffs and North American also refer you to the Complaint and to the other papers and Court orders on file in the Clerk s office. You may inspect these documents, as well as the full Settlement Agreement and Release, at the Clerk s office at any time 10:00 a.m. to 4:00 p.m., Pacific time, Monday through Friday, excluding Court-observed holidays. 27. How do I get more information? To get more information about the Settlement, you can: Call the NACOLAH Class Action Information Center where trained personnel are available to respond to questions that you may have toll-free at ( for the hearing-impaired); Write to the NACOLAH Class Action Information Center at P.O. Box 8060, San Rafael, CA ; or Visit the Settlement Website at where you will find copies of the Settlement Agreement and Release, Claim Form and Eligibility Declaration, and other information concerning the Settlement. DATE: November 1,

15 EXHIBIT 1 RELEASE AND WAIVER Set forth below are certain excerpts from the Settlement Agreement and Release relating to the Release of Class Claims: 1.11 Class Claims means all claims, including without limitation claims for (a) declaratory relief, (b) financial elder abuse, (c) breach of contract, (d) breach of duty of good faith and fair dealing, (e) negligent misrepresentation, (f) violation of California s unfair competition law, (g) violation of California Insurance Code section 781, (h) constructive trust, (i) constructive fraud, or (j) promissory estoppel, of any Settlement Class Member that arise directly or indirectly out of, or are related to any communications that relate in any way to premiums paid on or to be paid under the Class Policies, as defined herein, or amounts necessary to maintain coverage in force under the Class Policies, including any alleged omissions from such communications, as well as any failure to provide any communication alleged to have been necessary or required. 7. Release Of Class Claims By Settlement Class Members Release and Waiver Definitions - For purposes of the release and waiver (the Release ), set forth in this Section 7, and for purposes of this Agreement: Releasees means, individually and collectively, North American, its past, present and future parent companies (including intermediate and ultimate parent companies), subsidiaries, affiliates, predecessors, successors and assigns, together with all of its present, former, and future officers, directors, shareholders, insurers, employees, attorneys, legal representatives, and agents (including, without limitation, those acting on behalf of North American and within the scope of their agency) and their predecessors, successors and assigns Released Claims means (a) any and all Class Claims however they may be expressed, which Lapsed Coverage Settlement Subclass Members may have had, may have currently, or may have in the future against Releasees; (b) any and all past, present or future claims, complaints, causes of action, allegations of liability, damages, restitution, equitable, legal or other interest, or demands or rights, whether known or unknown, matured or unmatured, liquidated or unliquidated, whether before a local, state or federal court, tribunal, administrative agency or commission, whether or not concealed or hidden, asserted or that might have been asserted, including under any federal, state or local consumer protection statute or administrative rule or regulation, or under any other state or federal statute, rules, or regulations, that concern, refer or relate to, are based upon, or arise out of, in whole or in part, (i) any communications that relate in any way to premiums paid on or to be paid under the Qualifying Policies or amounts necessary to maintain coverage in force under the Qualifying Policies, including any alleged omissions from such communications, or (ii) any failure to provide any communication alleged to have been necessary or required, or that concern, refer or relate to, are based upon, or arise out of, in whole or in part, the facts alleged by Plaintiffs in this Action; (c) any and all claims arising out of any and all acts, failures to act, omissions, facts, matters, events, transactions, occurrences, or oral or written statements or representations made or allegedly made in connection with, or relating to, this Agreement, except that nothing in this release shall preclude any action to enforce the terms of this Agreement; and, (d) any and all claims for attorneys fees, costs, or disbursements incurred by Class Counsel or by Plaintiffs or by the Lapsed Coverage Settlement Subclass Members, or any of them, in connection with or related in any manner to the Action, the settlement of the Action or the administration of such settlement, except to the extent otherwise specified in this Agreement Release And Waiver Upon the Final Settlement Date, Plaintiffs, including the Trust Estate of John D. Krummell, and every Lapsed Coverage Settlement Subclass Member, for themselves, their attorneys, spouses, beneficiaries of their trusts, executors, conservators, personal representatives, wards, heirs, predecessors, successors, affiliates, agents and assigns, for the exchange of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, fully, finally, and forever release and discharge Releasees from all Released Claims Waiver Under California Civil Code Section 1542 (and Similar Provisions) Plaintiffs, the Trust Estate of John D. Krummell and every member of the Lapsed Coverage Settlement Subclass acknowledge that it is possible that unknown losses or claims exist or might exist or that present losses may have been underestimated in amount. Plaintiffs, the Trust Estate of John D. Krummell and every member of the Lapsed Coverage Settlement Subclass are deemed to acknowledge and understand that

16 they are familiar with principles of law such as and including Section 1542 of the Civil Code of the State of California, which provides: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass are hereby deemed to agree that Section 1542 and all similar federal or state laws, rules or legal principles of any other jurisdiction are knowingly and voluntarily waived by Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass in connection with the Released Claims as defined in the foregoing sections of this Release, and Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass are deemed to agree that this is an essential term of this Agreement. Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass are also deemed to acknowledge and understand that they may later discover claims presently unknown or unsuspected, or facts in addition to or different from those which they now believe to be true with respect to the matters released in this Agreement. Nevertheless, it is the intention of Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass to fully, finally, and forever settle and release and discharge all matters with Releasees that exist, hereafter may exist, or might have existed constituting Released Claims as defined under this Agreement Plaintiffs, including the Trust Estate of John D. Krummell, acknowledge that Class Counsel have advised them and that they are familiar with the provisions of Section 1542 of the California Civil Code, as well as the provisions of any and all comparable or similar statutes or principles of law of any other state or federal jurisdiction that might otherwise be deemed applicable, and that, being aware of Section 1542 and other similar statutes or principles of law, Plaintiffs expressly waive any and all rights and benefits conferred by Section 1542 or other similar statutes or principles of law on behalf of themselves, the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass. Plaintiffs admit to full knowledge and understanding of the consequences and effect of this waiver on behalf of themselves, the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass Additional Conditions of Release Nothing in this Release shall preclude any action to enforce the terms of the Agreement, including participation in any of the processes detailed therein Plaintiffs, including the Trust Estate of John D. Krummell, and the Lapsed Coverage Settlement Subclass expressly agree that this Release shall be, and may be raised as, a complete defense to, and will preclude, any action or proceeding encompassed by the Release of Releasees herein, and as a bar from indemnity and contribution claims arising out of the Released Claims herein Plaintiffs, including the Trust Estate of John D. Krummell, and every Settlement Class Member, for themselves, their attorneys, spouses, beneficiaries of their trusts, executors, conservators, personal representatives, wards, heirs, successors, and assigns shall not file an appeal from or otherwise seek review of any order approving this Agreement It is the intention of the Plaintiffs, on behalf of themselves and the Trust Estate of John D. Krummell and the Lapsed Coverage Settlement Subclass, in executing this Release to fully, finally, and forever settle and release and discharge all matters and all claims released under this Section Class Counsel and Plaintiffs agree not to file a motion for relief from the judgment under section 60 of the Federal Rules of Civil Procedure or otherwise make a collateral attack on the judgment Plaintiffs, including the Trust Estate of John D. Krummell, represent and warrant that they have not assigned or otherwise transferred or attempted to assign or transfer, and will not assign or otherwise transfer, all or any part of any of Plaintiffs claims against North American or any Class Claim