Transamerica Direct Recognition Life Settlement: Who Gets Paid

The notice does not say how much any one person will receive or provide the full allocation formula. It says the Settlement Agreement has more details.

• The notice does not give a fixed dollar amount for any individual.
• The $110 million fund will first be reduced by administration costs, Court-approved fees, expenses, service awards, and other Court-approved payments.
• The remaining fund will be allocated under a Court-approved plan. A person’s amount depends at least in part on the relative value of qualifying Cash Value Increases (CVIs) connected to their policy or policies.

A CVI is a Cash Value Increase. These are policy-credit commitments, not stated individual cash-payment amounts.

• TLIC says it will not take back certain 30-Year Guaranteed CVI credits that it paid or committed to pay through its 2025 and 2026 Bonus Crediting Project. That project concerns in-force DRL policies.
• For certain eligible DRL policies, TLIC says it will credit the 40-Year Guaranteed CVI if the policy is still in force on its 40-year anniversary.
• The notice does not give the complete eligibility rules for either CVI-related benefit. It says more details are in the Settlement Agreement.

This benefit does not replace the policy’s ordinary death-benefit terms. The notice also says that claims for a death benefit generally are not released, except a claim for unpaid CVIs as part of a death benefit.

• TLIC agrees not to try to void, rescind, cancel, declare void, or otherwise deny certain death claims from Settlement Class Members for either of two stated reasons: alleged lack of insurable interest or alleged misrepresentations in the original application.
• The notice does not say that every death claim is covered. It describes this protection as applying to certain death claims.

The notice recommends consulting a tax adviser about possible tax consequences and reporting obligations.

• You do not file a claim form for the cash payment. If you are entitled to a payment, the Settlement Administrator will mail a check.
• The notice does not state an amount or give a separate procedure for the policy-credit or death-claim benefits.

An exclusion request must identify the policy number or numbers to be excluded and be signed by all policyowners when applicable.

• If you own more than one policy, opting out removes all Settlement Class policies that you own.
• There is a narrow exception when you hold multiple policies for different principals in a representative or agency role, such as a trustee or securities intermediary. In that situation, you may seek exclusion for policies of one principal while remaining in the settlement for policies of others.

A person who opts out cannot object because the settlement no longer affects them.

• An objection must be filed with the Court and copies must be served on Class Counsel and TLIC’s counsel by October 2, 2026.
• It must identify the case, provide the objector’s contact information and qualifying certificate number or numbers, explain the legal and factual reasons, include supporting documents, state whether the person plans to attend the hearing, list any witnesses, and be signed by all policyowners if applicable.
• An objection asks the Court not to approve the proposed settlement. It cannot ask the Court to order a different settlement.

The scheduled Fairness Hearing is November 9, 2026, at 9:00 a.m. PT in Riverside, California. The Court may reschedule it without another mailed notice.

• You may ask to speak, but must follow the objection instructions and say in the objection that you or your lawyer intend to appear.
• The request must be filed with the Court and served on both sides no later than 14 days before the hearing.
• A lawyer appearing for an objector must file a Notice of Appearance by the same deadline.

The scheduled hearing is not a promise that approval or payments will occur on that date.

• The Court still must approve the settlement.
• After final approval, any appeals must also be resolved before payments are mailed.
• The notice does not provide a payment date and says the appeal process can take time.