Prudential Advances Claim Against Insured Who Signed Waiver

Prudential Insurance Co. of America can bring a breach-of-contract claim against an insured person who received $177,580 in exchange for releasing all claims under federal benefits law against his former employer.

Although Prudential isn’t a contracting party under the separation agreement between the insured and his employer, the insurer has standing to enforce it as a released party, Judge Robert F. Kelly Sr. of the U.S. District Court for the Eastern District of Pennsylvania held May 8. This is so because the agreement contains several clauses intending to grant direct benefits to the released parties, including Prudential as the plan’s ...