Allstate Insurance Faces Class Action Lawsuit

September 30 2013

Allstate Insurance Faces Class Action Lawsuit Birmingham, AL: Allstate retiree Garnet Turner is suing the insurer to protect the life insurance benefit he claims he was promised. Turner, a resident of Montgomery, Alabama, and a 32-year veteran Allstate agent, was notified by Allstate in July that the benefit would be cancelled in 2015.

Turner, who retired in the 1990s, filed suit after receiving that news. Turner began working for Allstate as an agent in 1963 and received several awards and honors over the decades. On retirement, as a benefit, he was promised a $90,000 life insurance policy for the rest of his life, at no charge to him, according to his attorneys.

The cancellation of the benefit coincides with a cost-cutting campaign by Allstate. The Chicago Tribune, in a report in July, the same month Allstate notified Turner, called the cost-cutting a top priority of the company. Turner's attorneys filed the suit in response. It is a class action for all retirees affected.

Turner is represented by Lew Garrison, a partner with the national law firm Heninger Garrison Davis. More is at stake than a broken promise, the attorneys say. Retirees like Turner, in view of their age, likely cannot get replacement insurance. HGD attorney Taylor Bartlett, who also represents Turner, explains: "Based on Allstate's promise, Turner and other retirees chose not to purchase fixed-cost life insurance at a younger age when such insurance was reasonably priced. These retirees cannot find life insurance today at reasonable rates and may be forced out of their coverage as a result."

Turner's suit is Turner v. Allstate Insurance Co., 2:13-cv-00685-MEF, filed in the U.S. District Court for the Middle District of Alabama.

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Reader Comments

Posted by
James M. Lyons
I have been trying to find the name and email address or phone number of the agents that have retired from Allstate, having the benefit of the Life Insurance that the Company has taken away and sold (or given, that's a joke) to another company that is in the process of either terminating the policies, due to an absolutely "ungodly" premium due to the age of the AGENT and the present health condition of the individual. I personally took advantage of the Life Policy only taking the minimum amount since I had and still have 11 life policies on myself and family for a number of years. The new company address on the return envelope of Minnesota Life Insurance Company and Securian Life Insurance Company. Included in the package was a sheet with the rate structure. Since my policy and the program given by Allstate, which at the time, was because the agents in the State of Florida were being approached by the Teamsters Union to represent them. I am very aware of this since I was not an Agent at the time but given the title of "Office Sales Manager" working directly under the Sales manager for the State of Florida. Home Office Chicago was definitely against this and was working, BEHIND THE SCREEN, UNKNOWN BY THE COURT,THAT WAS GOING TO BE MONITORING THE VOTING AND THE HEARING IF NECESSARY. I do not know if this information will be of any assistance in fighting the "lack of concern" to the outcome of the retiree's or not but know that I was one of several that was traveling the state to have meetings with the agents at the local "cup of coffee" spots and in the local meeting halls around the state, presenting the Companies feelings as to what it would do to the company if we signed with the TEAMSTERS. Then this information was given to the top Regional Management the following week for them to let home office know and see what action Home Office was going to take, the Life Insurance was one of them. They, the TEAMSTERS, came back indicating that we would not be listed as being TEAMSTERS but will be listed under the "BAKERS" UNION. The vote was taken and as known for all of this time we voted down the Union, this Life insurance package and a Health Plan after retirement was given to us at that time. I still, at this time have two homes, one car and eleven (11) life insurance policies with Allstate and a number of Allstate Stock. I still refer friends, people that I meet in my participation of Volunteer work at the local College and two of their other Campuses. I do disagree with the Current management AND board of Directors that would stoop so low as to bring about this class action. Any stock holder can look up on the "Insider Trading" item on their stock brokerage and see the amount of money with their MONTHLY STOCK OPTION, quiet often selling the same day and clearing often time, thousands of dollars, in a couple of cases over a million in profit and yet the current cost of what it is to the company to maintain the current status of the program and institute a new one for new agents and agencies. I apologize for the length but having given the Company 39 years 9 months and 6 days of my life to it and being able to have a comfortable life for my late wife and still have the two children that still talk about the old days of visiting at the Regional Office. I understand that there are certain laws pertaining to this kind of law suit but here again who knows what a Judge may rule. Good Luck and will look forward to you "site"

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