The settlement provides automatic, “injunctive relief” for class members who do nothing. For those policyholders, the defendants are supposed to retroactively fix any premium payment, interest payment or lapsation problems, or other types of problems related to the system conversion, such as income tax problems.
Full Answer
Who is the judge in Clapp vs Accordia?
Judge Colin Stirling Bruce — a judge in the U.S. District Court for the Central District of Illinois — recently issued an order granting preliminary approval to a class action settlement for the case Clapp et al v. Accordia Life and Annuity Company et al.
Who can object to settlement?
Policyholders or estate representatives who dislike the settlement can object or opt out.
Where is the accordia case?
The Accordia case in Illinois combines a class action lawsuit filed in the U.S. District Court for the Central District of California in October 2016 with a separate lawsuit filed in the Illinois court in April 2017.
Will independent producers of record get notices?
Independent producers of record will also get detailed notices about the settlement, according to Accordia.
What happens if a tribal claimant owes money to the United States?
The Settlement Agreement notes that if a tribal claimant owes money to the United States, the Treasury Department will collect that debt from the contractor’s settlement amount. Any amount left after the offset of the debt will then be released by Treasury for payment to the tribal contractor, after deduction of its share of the Reserve Account, costs, and attorneys’ fees.
What is the purpose of the settlement funds?
Funds paid to Class Members under this settlement may be used for any purpose or expenditure that the Class Member would otherwise be permitted to make under its governing documents and under applicable law. Settlement funds paid to individuals may be subject to income taxation and may impact an individual’s eligibility for needs-based programs.
Can the government terminate a settlement agreement?
No . The settlement agreement allowed the government to terminate the settlement in one unusual circumstance: if the Court permitted at least 15 tribal contractors to opt out of the settlement, and if those 15 tribal contractors’ collective share of the settlement exceeded 15% of the total settlement amount. But no Class Members opted out of the settlement.
Is one entity excluded from the settlement?
Yes, one entity objected to being excluded from the settlement. This entity received no contract support costs during any of the relevant years and so was not identified as a Class Member. Based upon this objection, the parties discovered 54 other contractors that had received no contract support costs, and asked the Court to include these additional contractors as Class Members. The Court, by Order entered December 17, 2015, approved this request. The revised Distribution Appendix showing these additional Class Members is posted on the Class website, at <WWW.RNCSETTLEMENT.COM/COURTFILINGS.HTML>. (Scroll down to “Jt response USET obj Exh B new Distrib Appx 12/16/2015”.)