Miller v. Rite Aid Corp.

I. Factual and Procedural Background

Connie Miller (“Miller”) was employed by Rite Aid from approximately 1981 until her death on February 13, 2002. For some unknown period of time, Rite Aid made deductions from Miller’s paycheck to pay for life insurance through a group plan provided by ReliaStar Life Insurance Company (“ReliaStar”). Appellants claim that the ReliaStar policy pro- vided for a benefit of approximately $150,000 and that Mil- ler’s children were the beneficiaries of the policy.

In February 2001, Miller was diagnosed with terminal can- cer and was placed on disability until her death one year later. On July 1, 2001, before Miller’s death, Rite Aid terminated its ReliaStar plan and replaced it with a group plan provided by Standard Insurance Company (“Standard”). Miller was not enrolled in the Standard life insurance plan because she was not included in the list of employees exempt from the plan’s “active at work” requirement, which provided that

If you are incapable of Active Work because of Sickness, Injury or Pregnancy on the day before the scheduled effective date of your insurance . . . your insurance will not become effective until the day MILLER v. RITE…