In July 2013, Allstate Insurance Company notified many of its retirees that it would cease paying for retiree life insurance benefits, effective January 1, 2016. This is the notice Allstate’s Jim Devries (Ex. V-P) gave the retirees:
“After careful consideration, beginning January 1, 2016, we have made the decision to no longer pay the premium for your current retiree life insurance benefit. Your current retiree life insurance benefit will remain in effect and Allstate will continue to pay for your premium coverage until December 31, 2015. However, at that time your company-paid coverage will end. You will be given the opportunity to continue coverage but at your own cost.”
This cancellation of life insurance is disturbing. The retirees trusted Allstate to follow through on a promise of lifetime life insurance benefits, they relied on that promise, and they planned their retirement accordingly.
On September 23, 2013, upon conducting an investigation into the cancellation, the national law firm Heninger Garrison Davis, LLC , filed what is believed to be the first case of its kind alleging that Allstate violated the law by cancelling the life insurance. The case name is Turner v. Allstate Insurance Company and it is filed in the United States District Court for the Middle District of Alabama. W. Lewis Garrison, Jr., Taylor C. Bartlett, and Christopher B. Hood represent the plaintiffs. The suit contends that Allstate, in reneging on the promise to provide the insurance, violated the Employee Retirement Income Security Act of 1974, specifically because it promised and represented to certain retirees that it would continue to pay their life insurance benefits for life. The Devries letter of July 2013 quoted above contradicts that promise.
Based on Allstate’s promise, many retirees chose not to purchase their own fixed-cost life insurance at a younger age when such insurance was more reasonably priced. These retirees cannot find life insurance today at reasonable rates and may be forced out of their coverage as a result. That is why they seek redress in court.
If you have received a similar letter, or Allstate has stopped paying your retiree life insurance benefits, and would like a free evaluation of your legal options, then please contact Taylor Bartlett at 205-326-3336 or 1-800-241-9779 . We are now accepting cases on a contingency fee basis and look forward to helping all affected Allstate retirees.
1/20/2016: Update 2: The Court issued the following order today concerning a meet and confer over the potential of settlement and discovery.
The order can be read here.
Update 1: On January 19, 2016, the Turner Plaintiffs filed a motion for an order requesting the Court to permit discovery against Allstate to begin.
The motion can be found here.
1/4/2016: On December 29, 2015, the Court issued an order granting the named Plaintiffs in the Turner and Klaas actions preliminary relief. The Court limited this preliminary relief to the 17 named Plaintiffs listed in the Second Amended Complaint (Doc. 44) a copy of which is found under the Resources tab. The Court denied the preliminary relief as to unnamed Plaintiffs. We have been in contact with all the named Plaintiffs. The order should be read by all persons affected by Allstate’s actions regarding retiree life insurance.
You can read the order here.
11/23/2015: On November 20, 2015, the Court issued a briefing order (click here) on Plaintiffs’ Motion for Preliminary Injunction. It set the hearing for December 18, 2015 in Montgomery, Alabama. All clients will be updated on the decision made by the Court. It is unknown at this time whether a decision will be issued by the Court at the hearing or whether it will be issued at some time thereafter. Please check this website for the most up to date information.
Read the filing: Doc 76 – Order re MTD and Prelim Injunc
11/16/2015: The Turner Plaintiffs today filed a preliminary injunction asking the Court to order Allstate to continue paying their promised life insurance benefits. At this time, the issue is before the Court. You may see the filings here:
11/2/2015: The Court has combined another case from Florida with the Turner action. On October 7, 2015 the Plaintiffs again responded to Allstate’s Motion to Dismiss. Both parties are waiting on the Court’s rulings regarding the same.
Read the response here.
6/18/2015: At this time there is nothing new to report. Both parties are waiting on a ruling from the Court on Allstate’s Motion to Dismiss.
09/30/2014: On September 30, 2014, pursuant to the Court’s order, the Plaintiffs filed a Second Amended Complaint.
Please see the filing here.
08/20/2014: This case has been reassigned to the Honorable W. Keith Watkins of the Federal District Court for the Middle District of Alabama.
See the notice here.
6/27/2014: We have been receiving a lot of calls concerning the status of the litigation. At this time, there is nothing to report. Both parties are waiting on a ruling from the Court on Allstate’s Motion to Dismiss. The filing of a motion to dismiss by Allstate does NOT mean that the Plaintiffs’ have lost. This is routine procedure in these type cases. As soon as there in an update in this case, we will promptly update this website.