HomeMy WebLinkAboutUnum Group -2007 08 28GENERAL RELEASE
This RELEASE (the "Release ") is executed this 2g T4 day of / - JGuVr , 2007_ by
RELEASOR (defined below) in favor of RELEASEE (defined below).
DEFINITIONS
" RELEASOR" refers to CITY OF WINTER SPRINGS and any of its affiliates,
subsidiaries, associates, general or limited partners or partnerships, predecessors, successors,
or assigns, including, without limitation, any of their respective present or former officers,
directors, trustees, employees, agents, attorneys, representatives and shareholders, affiliates,
associates, general or limited partners or partnerships, heirs, executors, administrators,
predecessors, successors, assigns or insurers acting on behalf of RELEASOR.
" RELEASEE" refers to Unum Group (formerly UnumProvident Corporation) and any
of its subsidiaries, affiliates, associates, general or limited partners or partnerships,
predecessors, successors, or assigns, including, without limitation, any of their respective
present or former officers, directors, trustees, employees, agents, attorneys, representatives
and shareholders, affiliates, associates, general or limited partners or partnerships, heirs,
executors, administrators, predecessors, successors, assigns or insurers (collectively,
"Unum ").
"Assurance" refers to a certain Assurance of Discontinuance between Unum and the
Attorney General of the State of New York ( "NYAG ") dated November 1, 2006, following an
investigation by NYAG relating to Unum.
RELEASE
1. In consideration for the total payment of $687.29 in accordance with the terms of the
Assurance, RELEASOR does hereby fully release, waive and forever discharge RELEASEE
from any and all claims, demands, debts, rights, causes of action or liabilities whatsoever,
including known and unknown claims, now existing or hereafter arising, in law, equity or
otherwise, whether under state, federal or foreign statutory or common law, and whether
possessed or asserted directly, indirectly, derivatively, representatively or in any other capacity
(collectively, "claims "), to the extent any such claims are based upon, arise out of or relate to,
in whole or in part, (a) any of the allegations, acts, omissions, transactions, events, types of
conduct or matters that are the subject of the Assurance; and (b) any allegations, acts
omissions, transactions, events, types of conduct or matters that are the subject of In re
Insurance Brokerage Antitrust Litigation, MDL No. 1663, or the action pending in the United
States District Court for the District of New Jersey captioned In re Employee Benefit
Insurance Brokerage Antitrust Litigation, Civ. No. 05 -1079 (FSH) or any related actions filed
or transferred to the United States District Court for the District of New Jersey that are
consolidated into either of the preceding Civil Action dockets.
2. In the event that the total payment referred to in paragraph 1 is not made for any
reason, then this RELEASE shall be deemed null and void, provided that any payments
received by RELEASOR shall be credited to Unum in connection with any claims that
RELEASOR may assert against Unum, or that are asserted on behalf of RELEASOR or by a
class of which RELEASOR is a member, against Unum.
10028599 000489.3
COMMISSION AGENDA
ITEM 200
Consent X
Informational
Public Hearin
Regular
August 27, 2007 MGR. &� /DEPT. 1�J�
Regular Meeting Authorization
REQUEST: City Manager requesting the City Commission to accept a settlement reached
by the New York State Attorney General with the Unum Group and
authorize the City to execute a release of future claims against the Unum
Group.
PURPOSE: This agenda item is needed for the Commission to accept the New York State
Attorney General's settlement with the Unum Group and execute a release of
associated future claims against the Unum Group.
CONSIDERATIONS:
The New York State Attorney General previously initiated an inquiry into insurance companies doing
business throughout the United States, including Florida, regarding their broker compensation practices.
At issue was the disclosure of sales bonuses to brokers on IRS form 5500. , Although the general practice
of the industry was not to disclose these type of bonuses on this particular IRS form, the New York
States Attorney argued that insurance companies were mandated to do so. Although the point was
arguable as we understand it, most companies agreed to settle the matter by agreeing out of court to do
so.
Unum is one of the insurance companies involved in this inquiry. Unum provided long -term disability
and basic life products to Winter Springs' employees during this time period. Winter Spring's insurance
broker received $687.29 in bonuses for these policies sold in 2002 only. The City no longer utilizes
Unum for this purpose. The City broker disclosed the bonuses to the City. However, Unum did not
disclose this information on the IRS form corporately.
On November 1, 2006, the New York State Attorney General reached a $15.5 million settlement
agreement with Unum in this regard. This settlement is being shared by eligible policyholders of Unum,
who held policies between January 1, 2002 and December 31, 2005.
FUNDING:
None.
RECOMMENDATION:
The City Manager recommends the City Commission authorize the City Manger to execute a
settlement offer and release of future claims against the Unum Group in the amount of $687.29.
ATTACHMENTS:
1. Unum Group Letter - Settlement Agreement Information
2. General Release
COMMISSION ACTION:
1
0 0
unum
Unum Fund Administrator
P.O. Box 1874
June 25, 2007 Faribault, MN 55021 -7129
1- 800 - 889 -6288
10028599 004900 -1
CITY OF WINTER SPRINGS
RONALD W MCLEMORE
1126 EAST SR 434
WINTER SPRINGS, FL 32708
Re: Your Eligibility to Receive. Payment from the Unum Fund
Dear Sir or Madam:
You recently received a packet of materials from the Unum Fund Administrator
notifying you of your eligibility to participate in a fund established as a result of a
resolution Unum reached with the New York Attorney General. The packet included
a notice letter, a W -9 Form, a General Release Form, and a Settlement Agreement
Information sheet detailing your distribution amount.
As of mid June, the Unum Fund Administrator has not received a General Release
Form from you, and we do not know whether you desire to participate in the Unum
Fund.
This is a reminder that, in the event you elect to participate in the Unum Fund, the
Unum Fund Administrator must receive your completed General Release Form
and W -9 no later than September 8, 2007 in order for you to receive your
distribution. Distributions will not be made to anyone whose release and W -9 is
received after the September 8, 2007 deadline.
For your convenience, attached is another copy of your General Release Form, W -9
and Settlement Agreement Information sheet. Please return your completed
General Release Form and W -9 form in the enclosed envelope to: ,
Unum Fund Administrator
P.O. Box 1874
Faribault, MN 55021 -7129
If you have further questions, please contact the Unum Fund Administrator at
1- 800 - 889 -6288.
Sincerely,
Fund Administrator
Enclosures: Settlement Agreement Information Sheet, General Release Form, W -9, return envelope
0 UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES.
Settlement Agreement Information
On November 1, 2006, Unum Group (formerly UnumProvident Corporation) and its insuring
subsidiaries, First Unum Life Insurance Company, Provident Life and Accident Insurance
Company, Unum Life Insurance Company of America, The Paul Revere Life Insurance
Company and Provident Life and Casualty Insurance Company (collectively "Unum "),
entered into a Settlement with the Attorney General of the State of New York to resolve his
investigations of Unum's broker compensation practices.. A copy of the Settlement (called an
"Assurance of Discontinuance ") is available at www.unumfundcustomer.com
As part of the Settlement, Unum agreed to distribute $15.5 million to certain Policyholders of
Unum. Policyholder clients eligible to elect to receive a distribution are defined in the New
York Attorney General's Assurance of Discontinuance as "policyholders of Unum covered
insurance (or their successors) who were represented by Brokers that received contingent
compensation or other compensation covered by this Assurance ( "Eligible Policyholders ")
between January 1, 2002 through December 31, 2005."
Our records indicate that Unum paid a Broker contingent compensation in connection with a
policy that was issued to your company. Therefore, your company is eligible to receive a
distribution pursuant to the Settlement.
Settlement Funds
As part of the Settlement, Unum agreed to create a fund in the amount of $15.5 million (the
"Fund "). The agreement required Unum to "calculate, in accordance with a formula approved
by the Attorney General, the amount of money that each Eligible Policyholder may receive
from the fund." This formula allocates a portion of the $15.5 million among Eligible
Policyholders who purchased new covered policies for which contingent compensation was
paid to a Broker according to a percentage of the premium that was paid for the covered
policy.
In accordance with the approved formulas, the amount payable to you on policy #567301 will
be $687.29 associated with the premium on your policy for which contingent compensation
was paid to a broker during the Settlement period. The actual amount of the payment
associated with the policy premium portion may be increased slightly to reflect interest and
other funds included in the Settlement fund. Please note that a W -9 form is included in this
package. Consistent with IRS regulations, this form must be completed prior to making a
fund payment. Based on the information provided on the W -9, as required, form 1099's will
be provided for you as a result of this distribution. Unum makes no representations regarding
state or federal tax consequences of this payment. Please be sure to keep this form and
provide it to your tax preparer so that the proper determination of the tax consequences of this
distribution can be made.
To participate in the Settlement, you do not need to demonstrate that Unum violated any legal
duty or that you suffered any injury or damages. The decision whether or not to participate in
the Settlement is entirely voluntary. If you elect not to participate, the portion of the Fund
attributable to you will be distributed to other Policyholders pursuant to the terms of the
Settlement. Under no circumstances will any portion of the Fund revert to Unum.
UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS SUBSIDIARIES. 111111111110111110111
t
How to Participate
You have until September 8, 2007 to request a cash distribution from the Fund If you
elect to receive a distribution, you must sign the enclosed Release form, which was
approved by the New York Attorney General as part of the Settlement Signing the
Release means that you will not be able to assert claims covered by the Release against
Unum or any of its subsidiaries or affiliates, related entities or individuals
The Release
The decision whether or not to participate in the Settlement is entirely voluntary. As noted
above, if you elect to receive a distribution from the Fund, you must sign and return the
enclosed Release by September 8, 2007.
By signing the Release, you will give up your right to pursue any claims covered by the
Release against Unum or its subsidiaries, affiliates, related entities or individuals. This
includes giving up any right you may have to participate in putative class actions against
Unum and numerous other companies currently pending in the United States District Court
for the District of New Jersey entitled In re Insurance Brokerage Antitrust Litigation, MDL
No. 1663. These actions allege numerous violations of federal and state statutory and
common law and seek various forms of damages and other relief. The Release does not
preclude participating Policyholders from seeking relief from non -Unum entities or
individuals that are not related to Unum.
If you elect not to receive a distribution from the Unum Fund, you will retain any rights
you may have to pursue an individual or class action against Unum, its subsidiaries or
affiliates.
How the Money Will Be Distributed
By November 7, 2007, Unum will pay each participating Policyholder the amount to which
that Policyholder is entitled based on the calculation performed under the Settlement. If
money remains in the Fund after this distribution to participating Policyholders, Unum may
use the remaining money to satisfy the claims of non - participating Policyholders. As noted
above, no portion of the Fund will revert to Unum.
For More Information
If you have questions about the Settlement, please call the Unum toll free number at
(800)- 889 -6288. You may also obtain information related to the Settlement at
www.unumfundcustomer.com.
This mailing includes the following enclosures: the Release form, a W -9 and a return
envelope for the Release form and W -9.
Thank you.
UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS SUBSIDIARIES.
t
GENERAL RELEASE
This RELEASE (the "Release ") is executed this day of , 200_ by
RELEASOR (defined below) in favor of RELEASEE (defined below).
DEFINITIONS
" RELEASOR" refers to CITY OF WINTER SPRINGS and any of its affiliates,
subsidiaries, associates, general or limited partners or partnerships, predecessors, successors,
or assigns, including, without limitation, any of their respective present or former officers,
directors, trustees, employees, agents, attorneys, representatives and shareholders, affiliates,
associates, general or limited partners or partnerships, heirs, executors, administrators,
predecessors, successors, assigns or insurers acting on behalf of RELEASOR.
" RELEASEE" refers to Unum Group (formerly UnumProvident Corporation) and any
of its subsidiaries, affiliates, associates, general or limited partners or partnerships,
predecessors, successors, or assigns, including, without limitation, any of their respective
present or former officers, directors, trustees, employees, agents, attorneys, representatives
and shareholders, affiliates, associates, general or limited partners or partnerships, heirs,
executors, administrators, predecessors, successors, assigns or insurers (collectively,
"Unum ").
"Assurance" refers to a certain Assurance of Discontinuance between Unum and the
Attorney General of the State of New York ("NYAG ") dated November 1, 2006, following an
investigation by NYAG relating to Unum.
RELEASE
1. In consideration for the total payment of $687.29 in accordance with the terms of
the Assurance, RELEASOR does hereby fully release, waive and forever discharge
RELEASEE from any and all claims, demands, debts, rights, causes of action or liabilities
whatsoever, including known and unknown claims, now existing or hereafter arising, in law,
equity or otherwise, whether under state, federal or foreign statutory or common law, and
whether possessed or asserted directly, indirectly, derivatively, representatively or in any other
capacity (collectively, "claims "), to the extent any such claims are based upon, arise out of or
relate to, in whole or in part, (a) any of the allegations, acts, omissions, transactions, events,
types of conduct or matters that are the subject of the Assurance; and (b) any allegations, acts
omissions, transactions, events, types of conduct or matters that are the subject of In re
Insurance Brokerage Antitrust Litigation, MDL No. 1663, or the action pending in the United
States District Court for the District of New Jersey captioned In re Employee Benefit
Insurance Brokerage Antitrust Litigation, Civ. No. 05 -1079 (FSH) or any related actions filed
or transferred to the United States District Court for the District of New Jersey that are
consolidated into either of the preceding Civil Action dockets.
2. In the event that the total payment referred to in paragraph 1 is not made for any
reason, then this RELEASE shall be deemed null and void, provided that any payments
received by RELEASOR shall be credited to Unum in connection with any claims that
RELEASOR may assert against Unum, or that are asserted on behalf of RELEASOR or by a
class of which RELEASOR is a member, against Unum.
III
3. This RELEASE may not be changed orally and shall be governed by and interpreted
in accordance with the internal laws of the State of New York, without giving effect to choice
of law principles, except to the extent that federal law requires that federal law governs. Any
disputes arising out of or related to this RELEASE shall be subject to the exclusive
jurisdiction of the Supreme Court of the State of New York or, to the extent federal
jurisdiction exists, the United States District Court for the Southern District of New York.
4. RELEASOR represents and warrants that the claims have not been sold, assigned or
hypothecated in whole or in part.
Dated:
RELEASOR:
Policy #: 567301
By
Print Name: —
Title:
Telephone #: _