Metropolitan Life Insurance Co. was sued by a group of 45 General Motors salaried retirees for cutting their life insurance benefits. In this lawsuit filed in Wayne County Circuit Court, retirees assert that their life insurance benefits have been reduced to "a meager" $10,000.
One of those listed in this suit as retirees is former GM Chairman John Smale. The retirees want to recover the original value of their policies.
The retirees are represented by Detroit-area attorney Andrew Rogers who said that each retiree's policy was valued from tens of thousands of dollars to over $1 million. Met Life wrote to each retiree, stating that the policyholder would have "continuing life insurance in effect, without cost to you, for the rest of your life."
Rogers said that getting their life insurance benefits reduced would result to financial harm since they won’t be able to get a new policy due to their advanced age.
Rogers divulged that the cuts in these benefits affect at least 300 more GM retirees and that this could be part of a class-action lawsuit. Rogers said it hasn’t been determined yet when the reduction of these benefits took effect.
Rogers said Met Life gained largely from these cuts since the insurer got full payment for the policies but would only have to pay out $10,000 for each policy. GM and Met Life have yet to comment on this matter.