Frequently Asked Questions

 

This page provides the answers to class members’ most frequently asked questions.

The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to carefully review the Notice of Class Action Settlement.

What is this Lawsuit About?

This lawsuit is about whether KCL’s Cost of Insurance deductions were consistent with the policy language in the Century II VUL life insurance policies issued by KCL (“Policies”). The Policies have a contract value (“Contract Value”) that earns interest or investment returns. The Policies expressly authorize KCL to take a Monthly Deduction from the Contract Value each month.

Plaintiff alleges that KCL violated the Policies in three different ways.

• First, the Policies state that the Cost of Insurance Rates used to calculate monthly Cost of Insurance Charges will be determined by KCL based on its expectations as to future mortality experience. Plaintiff alleges that KCL impermissibly used unauthorized and undisclosed non-mortality factors to determine the Cost of Insurance Rates.
• Second, Plaintiff alleges KCL failed to reduce its Cost of Insurance Rates when KCL’s expectations as to future mortality experience improved.
• Third, while the Policies provide for a separate Monthly Expense Charge, Plaintiff alleges that KCL exceeds the fixed amount of this charge by using its expenses when determining Cost of Insurance Rates. KCL denies all of Plaintiff’s claims, and asserts that, at all times, it complied with the plain language of the Policies.

Why is there a Settlement?

The Parties negotiated the Settlement with an understanding of the factual and legal issues that would affect the outcome of these lawsuits. During the lawsuit, Plaintiff, through his attorneys, thoroughly examined and investigated the facts and the law relating to the issues in these cases.

Plaintiff believes that the final outcome of the lawsuit, if he were to proceed through appeals, is uncertain. A settlement avoids the costs and risks of further litigation and provides immediate relief to the Sheldon Class Members. Based on his evaluation of the facts and law, Plaintiff and his attorneys have determined that the proposed Settlement is fair, reasonable, and adequate. They have reached this conclusion based on the substantial benefits the Settlement provides to Sheldon Class Members and the risks, uncertainties, and costs inherent in the lawsuit.

While there was a trial in this case, there has been no final appellate determination on the merits of the claims or defenses in this lawsuit. There will be no final determination on the merits of the remaining claims and defenses if the Court approves the Settlement. The Settlement does not indicate that KCL has done anything wrong or that Plaintiff and the Sheldon Class Members would win or lose if this lawsuit were to proceed through the appeal.

Who is included in the Class?

The Sheldon Class includes all persons or entities who own or owned one of the approximately 530 Policies issued by KCL. “Policies” means all Century II VUL insurance policies issued by KCL in the state of Missouri that were active on or after January 1, 2002. A Policy includes all applications, schedules, riders, and other forms that were specifically made a part of the Policy at the time of issue, plus all riders and amendments issued later. Policies include everything that was part of “The Contract,” as that term is defined in your Policy or Policies.

A separate settlement class covers all persons or entities who own or owned life insurance policies issued by KCL in the state of Missouri, as well as KCL life insurance policies issued in other states. That class will receive a different notice and is being overseen by the Hon. Beth Phillips in the United States District Court for the Western District of Missouri. If you own or owned another universal life insurance policy issued by KCL and covered by the separate settlement, you may receive a separate notice setting out your rights and obligations related to that portion of the Settlement. If you owned both a Century II VUL policy issued in Missouri and another one of the policies covered by that settlement class, you may be a member of both settlement classes. You are not part of the Sheldon or any Settlement Class if you are KCL; any entity in which KCL has a controlling interest; any of the officers, employees, or board of directors of KCL; the legal representatives, heirs, successors, and assigns of KCL; anyone employed with Plaintiff’s counsel’s law firms; the owner of the policy bearing policy number 5033898; or any Judge to whom this Action or Related Action is assigned or his or her immediate family.

If someone who would otherwise be a Sheldon Class Member is deceased, his or her estate is a Sheldon Class Member.

What does the Settlement provide?

KCL has agreed to fund a Settlement Fund in the amount of $5 million, which will be used to pay (1) all payments to Sheldon Class Members; (2) Class Counsel’s attorneys’ fees and expenses in an amount to be approved by the Court; (3) any service award to Plaintiff J. Gregory Sheldon in an amount to be approved by the Court; and (4) the expenses incurred in administering the Settlement. The Net Settlement Fund equals $5 million less the amounts described in (2) through (4) as approved by the Court.

If the Court approves the Settlement related to the Sheldon Class and Judge Phillips approves the portion of the Settlement related to the Settlement Class, settlement checks will be mailed to Sheldon Class Members in amounts that will vary according to a Distribution Plan. The Distribution Plan is designed to provide each Sheldon Class Member an approximate pro rata portion of the Net Settlement Fund in proportion to the amount of damages with prejudgment interest allegedly suffered by each Sheldon Class Member. There will also be a minimum cash payment and more paid where a Sheldon Class Member’s Policy is still in force.

You should consult your own tax advisors about the tax consequences of the proposed Settlement, including any benefits you may receive and any tax reporting obligations you may have as a result.

How do I participate in the Settlement?

Sheldon Class Members do not have to do anything to participate in the Settlement. No claims need to be filed. Upon approval of the Settlement, a settlement check will be sent to every Sheldon Class Member in the amount determined by the Settlement Administrator using the method described in Question 7 of the Notice. If someone who would otherwise be a Sheldon Class Member is deceased, his or her estate is a Sheldon Class Member. If your address changes, you should contact the Settlement Administrator to give them your new address.

What happens if I do nothing at all?

If the Settlement is approved, you will receive a settlement check representing your share of the Settlement. The settlement checks will be sent to Sheldon Class Members within 30 days after the Final Settlement Date.

If the Settlement is approved, you cannot sue KCL or be part of any other lawsuit against KCL concerning the Released Claims, as that term is defined in the Settlement Agreement. If your Policy is still in force, KCL is not required to lower its Cost of Insurance Rates and may continue to use its current Cost of Insurance Rates. KCL may also increase Cost of Insurance Rates if deterioration in its expectations as to future mortality experience is the reason for the increase.

The Settlement Agreement is available here and describes the claims that you are giving up. If you have any questions, you can talk to Class Counsel for free, or you can hire your own lawyer.

How do I tell the Court I don’t like the Settlement?

 You can object to the Settlement if you do not like some part of it. The Court will consider your views. To object to the Settlement, you must serve a written objection in the case, Sheldon v. Kansas City Life Insurance Company, Case No. 1916-CV26689. The objection must include the following:

• The Sheldon Class Member’s name (or the name of the entity that owns the Policy), current address, telephone number, and email address;
• Policy number(s);
• A written statement of all reasons for the objection accompanied by any legal support for the objection (if any);
• Copies of any papers, briefs, or other documents upon which the objection is based (if any);
• A list of all persons who will be called to testify in support of the objection (if any);
• A list of any attorneys representing you or who assisted in the preparation of your objection (if any);
• Whether you intend to appear at the Fairness Hearing and the identity of all attorneys (if any) who will appear at the Fairness Hearing on your behalf;
• Whether the objection applies only to you, to a specific subset of the Sheldon Class, or to the entire Sheldon Class; and
• The signature of you or your counsel.

You must mail your objection to the Settlement Administrator at Sheldon v KCL Litigation P.O. Box 2002, Chanhassen, MN 55317-2002, postmarked no later than September 22, 2025.

Do I have a lawyer in this case?

Yes. The Court appointed the following lawyers as “Class Counsel” to represent all the members of the Sheldon Class:

John J. Schirger, Joseph M. Feierabend
Schirger Feierabend LLC
6811 Shawnee Mission Parkway, Suite 312
Overland Park, KS 66202
sheldonkcllitigation@SFLawyers.com

Patrick J. Stueve, Bradley T. Wilders,
Lindsay Todd Perkins, Ethan M. Lange
Stueve Siegel Hanson LLP
460 Nichols Rd., Suite 200
Kansas City, MO 64112
sheldonkcllitigation@stuevesiegel.com

If you have questions, you may contact these lawyers. You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

When and where will the Court decide whether to approve the Settlement?

The Judge will hold a Fairness Hearing to decide whether to approve the Settlement and any requests for attorneys’ fees and expenses, service award to Plaintiff, and the costs of settlement administration. You may attend and ask to speak, but you do not have to.

The Judge will hold the Fairness Hearing at 2:30 p.m. on December 11, 2025, at the Jackson County Courthouse, 308 West Kansas – 1st Floor, Independence, MO 64050. The Fairness Hearing may be moved to a different date or time without additional notice being mailed to you, so please check www.sheldonkcllitigation.com for any updates. At the Fairness Hearing, the Judge will consider whether the Settlement is fair, reasonable, and adequate and in the best interests of Sheldon Class Members and whether to award the requested attorneys’ fees, expenses, service award, and the costs of settlement administration. If there are objections, the Judge will consider them and will listen to people who have asked to speak at the Fairness Hearing. After the Fairness Hearing, the Judge will decide whether to approve the Settlement. We do not know how long the Judge’s decision will take.

When will I receive my Settlement check?

Payments to class members are currently expected to be mailed by February 20, 2026. Please allow 10-15 business days to receive your check after mailing.

My family member had a policy but has passed away. Can I get the check in my name?

To have a check made out to someone other than the deceased Class Member’s estate, you must submit copies of supporting documentation for the name change.

My family member had a policy but has passed away. Can I get the check made payable to their estate?

Payment can be issued to the estate of a Class Member if a copy of that Class Member’s death certificate is provided to the Settlement Administrator. Checks made to an estate will be issued as payable to “ESTATE OF” the deceased Class Member. If you would like any eventual payment made payable to an estate, please mail or email a copy of the death certificate the address below:

Sheldon v KCL Litigation
P.O. Box 2002
Chanhassen, MN 55317-2002
SheldonKCL@noticeadministrator.com

How long do I have to negotiate my check?

Checks will expire 180 days after they are issued. Please cash or deposit your Settlement check promptly after receipt.

If I do not negotiate my check, what happens to the funds?

All checks that are not negotiated within 180 days will be escheated to the unclaimed property division of the state where each such Settlement Class Member was last sent Class Notice. After funds have escheated to the unclaimed property division, you will need to contact that state’s unclaimed property division to obtain your settlement funds.

Can my Settlement check be reissued?

Yes. For check reissue requests, please email the Settlement Administrator at SheldonKCL@noticeadministrator.com, or write to Sheldon v KCL Litigation, P.O. Box 2002, Chanhassen, MN 55317-2002. Please allow 4-6 weeks for the check reissue to be processed. Checks will expire 180 days after the issue date.

I’ve moved, can I update my mailing address?

Yes. To update a mailing address, please email the Settlement Administrator at SheldonKCL@noticeadministrator.com, or call 1-844-672-0836.

Can the Settlement Administrator wire me my award?

Settlement awards will be issued by check only.

Will I be provided with a Form 1099 from the Settlement Administrator?

1099 forms will not be provided along with Settlement checks. The Settlement Administrator cannot provide individual tax advice. The tax treatment of distributions from the Net Settlement Fund is the responsibility of each recipient. You should consult your tax advisor to determine the tax consequences, if any, of this distribution to you.

How do I get more information?

You may call the administrator at 1-844-672-0836, or email SheldonKCL@noticeadministrator.com.