Horace Mann Investors, Inc.

Allegations: MEMBER FILED AN INCORRECT 3070 REPORT ON A REGISTERED REPRESENTATIVE AND FAILED TO AMEND THE FORM U4 FOR THIS REPRESENTATIVE IN A TIMELY FASHION. Status: Final Sanction Detail: FINE IN THE AMOUNT OF $10,000.00 PAID IN FULL ON 12/20/2006.

Allegations: A REGISTERED REPRESENTATIVE OF HORACE MANN INVESTORS, INC. LOCATED IN THE STATE OF VERMONT, THROUGH AN INADVERTENT OMISSION BY PERSONNEL NO LONGER EMPLOYED BY THE FIRM, CONDUCTED BUSINESS IN THE STATE WITHOUT BEING PROPERLY REGISTERED WITH THE DIVISION Status: Final Sanction Detail: THE ENTIRE MONETARY FINE AMOUNT AND BACK REGISTRATION FEES WERE PAID IN FULL ON 06/29/2006 BY HORACE MANN INVESTORS, INC. Summary: HORACE MANN INVESTORS, INC. AND THE DIVISION ENTERED INTO A CONSENT ORDER THAT WAS FULLY EXECUTED ON 7/11/2006.

Allegations: HORACE MANN INVESTORS, INC. WAS ISSUED A SUSPENSION ORDER OF ITS BROKER/DEALER LICENSE IN THE STATE OF IOWA EFFECTIVE OCTOBER 16, 1989. THE SUSPENSION WAS ISSUED FOR FAILURE TO HAVE AN EFFECTIVE SURETY BOND ON FILE WITH THE STATE. HORACE MANN INVESTORS WAS IN THE PROCESS OF OBTAINING A REPLACEMENT BOND WHICH WAS FILED WITH IOWA WITH NO LAPSE IN COVERAGE. AN ACTIVE ORDER WAS IMMEDIATELY GIVEN UPON RECEIPT OF THE REPLACEMENT BOND. Status: Final Sanction Detail: HORACE MANN WAS SUSPENDED FROM SELLING VARIABLE ANNUITIES UNTIL A $15,000 SURETY BOND WAS PROVIDED TO THE STATE. Summary: HORACE MANN INVESTORS WAS IN THE PROCESS OF OBTAINING A REPLACEMENT BOND WHICH WAS FILED WITH IOWA WITH NO LAPSE IN COVERAGE. AN ACTIVE ORDER WAS IMMEDIATELY GIVEN UPON RECEIPT OF THE REPLACEMENT BOND. THE EXACT DATE IS NOT AVAILABLE.

Allegations: HORACE MANN INVESTORS, INC. FAILED TO HAVE A QUALIFIED SUPERVISORY OFFICER. Status: Final Sanction Detail: SUSPENDED FROM REGISTERING AS A BROKER/DEALER UNTIL HORACE MANN INVESTORS, INC. COULD PROVIDE A QUALIFIED SUPERVISORY OFFICER. Summary: HORACE MANN INVESTORS, INC. WAS SUSPENDED UNTIL THEY REAPPLIED FOR BROKER/DEALER REGISTRATION IN 1978 WITH A QUALIFIED SUPERVISORY OFFICER. THE REGISTRATION WAS APPROVED 10/06/1978.

Allegations: IN 2016, THE STATE OF DELAWARE TRANSITIONED ITS DEFERRED COMPENSATION PLANS FROM NUMEROUS INDEPENDENT 403(B) SERVICE PROVIDERS TO A SOLE PROVIDER. RELATED TO THIS TRANSITION, OVER 120 TEACHERS WITH 403(B) ACCOUNTS WITH HORACE MANN OPENED IRAS IN 2016 AND 2017 WITH THE FIRM, THROUGH ONE OF ITS REGISTERED REPRESENTATIVES. THE ATTORNEY GENERAL'S INVESTOR PROTECTION UNIT (IPU) INVESTIGATED THE FACTS AND CIRCUMSTANCES RELATING TO THE OPENING OF THESE ACCOUNTS. IPU ALLEGED THAT THE REGISTERED REPRESENTATIVE ENGAGED IN DISHONEST AND UNETHICAL PRACTICES IN VIOLATION OF THE DELAWARE SECURITIES ACT, TAKING UNFAIR ADVANTAGE OF CUSTOMERS WITH 403(B) ACCOUNTS WHO WERE CONFUSED ABOUT THE TRANSITION TO THE SOLE PROVIDER BY PROVIDING THEM WITH INADEQUATE OR INACCURATE INFORMATION WHICH WAS MISLEADING. IPU CONCLUDED THAT THERE WAS A FAILURE TO SUPERVISE THE REGISTERED REPRESENTATIVE. Status: Final Sanction Detail: A. MONETARY FINE - AMOUNT $300,000 (DUE WITHIN 5 DAYS OF THE CONSENT ORDER) B. CEASE & DESIST C. DISGORGEMENT/RESTITUTION - OPTION 1: CLIENT MAY CLOSE THEIR ACCOUNT AND RECEIVE PAYMENT/REIMBURSEMENT OPTION 2: CLIENT MAY KEEP THEIR ACCOUNT AND RECEIVE A REIMBURSEMENT OF FEES CHARGED AGAINST THE ACCOUNT OPTION 3: CLIENT MAY CONTINUE IN THEIR ACCOUNT WITHOUT ANY CHANGES Summary: HORACE MANN CONSENT ORDER SIGNED 12/30/2019 1. FINE OF $250,000 2. PAYMENT OF $50,000 FOR INVESTOR EDUCATION - DUE WITHIN 5 DAYS OF CONSENT ORDER 3. IN ADDITION THE FIRM AGREES TO PAY AN ADDITIONAL FINE LEVIED AGAINST THE REGISTERED REPRESENTATIVE IN THE AMOUNT OF $250,000 AND PAYMENT OF $50,000 FOR INVESTOR EDUCATION (SEPARATE CONSENT ORDER AGAINST THE REGISTERED REP) SHOULD THE REGISTERED REP FAIL TO MAKE THE PAYMENT 4. THE FIRM WAS ORDERED TO COMPLETE ADDITIONAL SETTLEMENT OPTIONS, SETTLEMENT PAYMENTS, AND OTHER UNDERTAKINGS TO THE AFFECTED DELAWARE CLIENTS: COMMUNICATIONS OF WHICH HAVE BEEN MAILED TO THE AFFECTED CLIENTS BUT NO PAYMENTS HAVE BEEN MADE TO DATE (CLIENTS HAVE 75 DAYS IN WHICH TO RESPOND): OPTION 1: CLIENT MAY CLOSE THEIR ACCOUNT AND RECEIVE PAYMENT/REIMBURSEMENT OPTION 2: CLIENT MAY KEEP THEIR ACCOUNT AND RECEIVE A REIMBURSEMENT OF FEES CHARGED AGAINST THE ACCOUNT OPTION 3: CLIENT MAY CONTINUE IN THEIR ACCOUNT WITHOUT ANY CHANGES 5. THE FIRM IS ORDERED TO REFRAIN FROM ANY FUTURE VIOLATIONS