Appeals court revives Geico ‘captive’ insurance agents’ class action

The 6th U.S. Circuit Court of Appeals said Monday a judge erred when dismissing a proposed class action brought by “captive” insurance agents against Geico and two of its subsidiaries based on documents filed in response to the lawsuit.

The three-judge appellate panel in James Moyer v. Government Employees Insurance Co. et al. said the lower court should not have relied on the insurers’ documents on welfare benefits and profit sharing to find that the agents could not participate in any other benefits plans. The panel said disputes exist whether the documents were reliable.

The agents, led by James Moyer, sued Geico, a subsidiary and the administrator of the insurer’s benefits plans, in federal court in Columbus, Ohio, accusing them of violating the Employee Retirement Income Security Act of 1974 by classifying them as independent contractors who cannot receive the full slate of benefits the insurer offers to corporate employees. Specifically, the agents said Geico only allowed them to participate in health and life insurance plans but not a group dental plan, a profit-sharing plan, a Roth 401(k) plan, and a long-term disability plan, court records show.

The agents did not include any of the plan documents with their complaint. After Geico filed a motion to dismiss, the judge ordered the parties to submit copies of the relevant plans. Geico submitted copies of some plans, but the agents sought more information. The judge sided with Geico after reviewing the documents and deciding they showed the agents were not eligible to receive the benefits.

Representatives for the parties did not respond to requests for comment.