Greedy Trial Lawyer
Wal-Mart, The Not-So-Grim Reaper
Category: Seeing Clearly Now
Wal-Mart has claimed it has an insurable interest in all of its full-time employees. That means it purchased life insurance, naming itself as a beneficiary, on about 350,000 employees. You have to wonder if the company has obtained life insurance on its regular shoppers.
Attorney: Wal-Mart Collected On Deaths
By ELAINE SILVESTRINI The Tampa TribuneWhen Karen Armatrout died in 1997, her employer, Wal-Mart, collected thousands of dollars on a life insurance policy the retail giant had taken out without telling her, according to a lawsuit filed in U.S. District Court.
Armatrout was one of about 350,000 employees Wal-Mart secretly insured nationwide, said Texas attorney Michael D. Myers, who estimated the company collected on 75 to 100 policies involving Florida employees who died.
Myers said the policy payouts ranged from $50,000 to $80,000, depending on the person's age and gender. They were taken out on all full-time Wal-Mart employees who, in December 1993, were between ages 18 and 70 and participated in the medical benefits plan.
He said the company stopped taking out the policies in 1995 but continued to receive payouts on employees who died, even those who had left Wal-Mart.
Even after employees leave their jobs at Wal-Mart they continue to contribute to the bottom line.
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