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.