General Motors retirees sue Metropolitan Life to redeem mislaid word

Article by Christian Andrei, on June 22, 2011

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.

Topics: gm

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries