MetLife to Pay Beneficiaries $75 Million to End Checkbook Spat

Metropolitan Life Insurance Co. and beneficiaries want court approval of a $75 million class settlement to resolve allegations it violated ERISA by paying life insurance benefits through checkbook-style accounts.

About 120,000 class members will receive checks automatically under the settlement, according to the plaintiffs’ motion for preliminary approval filed July 25.

The lawsuit challenged MetLife’s decision to pay life insurance benefits through Total Control Accounts, which allow beneficiaries to draw down the policy proceeds over time.

These accounts, formally known as retained asset accounts, are a common method of paying life insurance benefits that have been challenged under the Employee ...