SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 19, 2002
(Date of Earliest Event Reported)
JOHN HANCOCK FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in charter)
Commission File Number: 1-15607DELAWARE 04-3483032
(State or other jurisdiction of incorporation (I.R.S. Employer Identification No.)
John Hancock Place
(Address of principal executive offices)
(Registrant's telephone number, including area code)
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Report to be signed on its behalf
by the undersigned hereunto duly authorized.
JOHN HANCOCK FINANCIAL SERVICES, INC.
Date: July 19, 2002 By: /s/Thomas E. Moloney
Thomas E. Moloney
Chief Financial Officer
For Release: Upon Receipt
John Hancock Settles "Modal Premium" Class Action Litigation
New Mexico State Court Gives Preliminary Approval To Agreement
Boston (July 19, 2002)-- John Hancock Financial Services, Inc., has settled a
nationwide class action lawsuit involving policyholders who paid premiums on a
monthly, quarterly or semi-annual basis, rather than annually. The lawsuit,
known as a "Modal Premium" action, was filed in a New Mexico state court and is
one of twenty-one such nationwide class actions brought against insurance
In "Modal Premium" cases, the plaintiffs have generally alleged that their
insurance company did not adequately notify them of additional costs that may be
incurred if they pay their premiums on a periodic rather than annual basis.
In John Hancock's case, the class action settlement affects approximately 1.5
million customers who purchased various insurance products from the company and
paid on a monthly, quarterly or semi-annual basis. If eligible under the
agreement, these customers may receive a settlement death benefit of $800, $1100
or $1400, depending on their specific circumstances. According to company
officials, the after-tax cost to provide this benefit along with related
administrative and legal expenses is $19.5 million, a non-operating income item.
A toll-free number and website are being set up to handle any questions class
members may have about the settlement. The toll-free number will be
800-873-2354. The website's address will be www.mccall.jhancock.com. The number
and website will become operational over the next several weeks as the
court-approved notices are mailed to members of the class.
John Hancock Financial Services, Inc. (NYSE: JHF) and its affiliated companies
provide a broad array of insurance and investment products and services to
retail and institutional customers. As of March 31, 2002, John Hancock and its
subsidiaries had total assets under management of $125.3 billion.
The statements, analyses, and other information contained herein relating to
trends in the company's operations and financial results, the markets for the
company's products, the future development of the company's business, and the
contingencies and uncertainties to which the company may be subject, as well as
other statements including words such as "anticipate,""believe,""plan,""estimate,""expect,""intend,""will,""should,""may," and other similar
expressions, are "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. Such statements are made based upon management's
current expectations and beliefs concerning future events and their potential
effects on the company.
Future events and their effects on the company may not be those anticipated by
management. John Hancock's actual results may differ materially from the results
anticipated in these forward-looking statements. For a discussion of factors
that could cause or contribute to such material differences, investors are
directed to the risks and uncertainties discussed in our Form 10-K for the year
ended December 31, 2001, and other documents filed by the company with the
Securities and Exchange Commission. These risks and uncertainties include,
without limitation, the following: changes in general economic conditions; the
performance of financial markets and interest rates; customer responsiveness to
existing and new products and distribution channels; competitive and business
factors; new tax or other legislation; and government regulation.
The company specifically disclaims any obligation to update or revise any
forward looking information, whether as a result of new information, future
developments or otherwise.
# # #