TILTON, N.H. (AP) -- A widow whose husband suffered a fatal heart attack at the Wal-Mart where he worked is suing the company, claiming it did not have the right to take out a life insurance policy on him. 

Michael Rice, 48, was an assistant manager at the Tilton Wal-Mart when he collapsed three years ago after helping a customer carry a television to her car. When he died seven days later, Wal-Mart collected at least $325,000 from the policy. 

Vicki Rice, who now lives in Bangor, Maine, is suing Wal-Mart in U.S. District Court in Concord, arguing that the money rightfully belongs to her. 

'They used Mike terribly,' she said. 'They abused him, working him like that ... And then they go out and collect $300,000? It's very immoral.'

Corporations commonly take out life insurance policies on key officers and directors, but during the 1990s, Wal-Mart and other companies bought life insurance policies on more than 350,000 employees in an effort to save money on taxes. Question Who's Online | Find Members | Private Messages
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447 hits Rate me! Share Favorite | Flag 19 years ago by KikiPeepers

Should companies be able to take out life insurance policies on their employees?
TILTON, N.H. (AP) -- A widow whose husband suffered a fatal heart attack at the Wal-Mart where he worked is suing the company, claiming it did not have the right to take out a life insurance policy on him.

Michael Rice, 48, was an assistant manager at the Tilton Wal-Mart when he collapsed three years ago after helping a customer carry a television to her car. When he died seven days later, Wal-Mart collected at least $325,000 from the policy.

Vicki Rice, who now lives in Bangor, Maine, is suing Wal-Mart in U.S. District Court in Concord, arguing that the money rightfully belongs to her.

`They used Mike terribly,` she said. `They abused him, working him like that ... And then they go out and collect $300,000? It`s very immoral.`

Corporations commonly take out life insurance policies on key officers and directors, but during the 1990s, Wal-Mart and other companies bought life insurance policies on more than 350,000 employees in an effort to save money on taxes.


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19 yrs ago, 5 mos ago - Monday 12/16/02 - 9:31:40 AM EST (GMT-5)
I feel for her but I can't find fault with them taking out a policy on him.
19 yrs ago, 5 mos ago - Monday 12/16/02 - 9:34:38 AM EST (GMT-5)
it does seem like a conflict in interest. companies are supposed to be interested in the health and safety of their employees, not in cashing in on their deaths...
19 yrs ago, 5 mos ago - Monday 12/16/02 - 10:04:26 AM EST (GMT-5)
It seems totally wrong to me - why is a company collecting life insurance on some assistant manager at one of thousands and thousands of stores? Why does a huge corporation get over a quarter of a million dollars, instead of the man's wife? How interested in safety and wellness of their employees will they be if they knew they profit from employee deaths? Something about it just doesn't sit right with me.
19 yrs ago, 2 mos ago - Monday 3/17/03 - 11:42:30 AM EST (GMT-5)
She should get the money, not wal-mart. thats irresponceable for a company to do that. Maybe the wife and her husband couldn't afford insurance like the company could. Why should they profit and not the wife.
17 yrs ago, 7 mos ago - Monday 10/4/04 - 5:34:34 AM EST (GMT-5)
Its just another case of big business exploiting people who can't afford to do anything about it. It's disgraceful behaviour that the goverment would do something about if they weren't already in the pockets of big business. Haliburton????
17 yrs ago, 7 mos ago - Monday 10/4/04 - 12:02:54 PM EST (GMT-5)
If Walmart had not taken out the policy, the woman would have the same thing she does now, NOTHING! Walmart took out a legal life insurance policy on this man, and now this woman wants something that doesn't belong to her.

I'm sure walmart also supplied health insurance for the employee, and they committed no crime. How can you be mad at them? They paid the yearly premium, and they are 100% entitled to the money.

I think anyone who is upset is just mad that it is a large company like Walmart who did it. We don't live in a communist country and Walmart can legally buy insurance on anyone they want to. This woman could have done the same thing and collected even more money, had they planned ahead.

17 yrs ago, 7 mos ago - Monday 10/4/04 - 12:06:27 PM EST (GMT-5)
I don't like the idea of anyone taking out a life insurance policy on anyone else unless the insured person consents.
14 yrs ago, 6 mos ago - Wednesday 11/21/07 - 5:17:11 PM EST (GMT-5)
WTF ... apparently they take out accident insurance on their employees too, this is so wrong:

Woman settles over brain damage causing accident, but Wal-Mart gets the money




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