Class Action Complaint Challenges MetLife’s Use of Retained Asset Accounts

A recently filed class action complaint argues that Metropolitan Life Insurance Co.'s use of retained asset accounts to pay life insurance benefits constitutes a fiduciary breach under the Employee Retirement Income Security Act (Owens v. Metro. Life Ins. Co., N.D. Ga., No. 2:14-cv-00074).

According to the complaint, MetLife distributes benefits to life insurance beneficiaries by giving them checkbooks that earn limited interest and that can be used to draw funds. MetLife retained control of these benefits until they were drawn upon by the beneficiaries, investing them and earning interest in the interim, the complaint alleged.

In addition ...