Unum Breached Its ERISA Fiduciary Duties Through Its Use of Retained Asset Accounts

Weighing in on the growing judicial divide over the fiduciary implications of insurers that use “retained asset accounts” to pay life insurance benefits, the U.S. District Court for the District of Maine ruled Feb. 3 that Unum Life Insurance Co. of America breached its fiduciary duties through the way it structured such accounts (Merrimon v. Unum Life Insurance Co. of America, D. Me., 2:10-cv-00447-NT, 2/3/12).

Earlier this week, another court also addressed the use of retained asset accounts (RAAs), or checkbooks, to pay life insurance benefits. In Edmonson v. Lincoln National Life Insurance Co., No. 2:10-cv-04919-MMB (E.D. ...