The City of Ansonia will pay $30,000 to settle a lawsuit brought by the widow of a longtime city employee who was accidentally left off the list of people eligible for health benefits.
The employee, Claude Perry, worked in City Hall for more than three decades before dying in 2011. The city’s insurance company, Anthem, denied claims filed by his wife, Virginia, for payment on a $30,000 life insurance policy.
The Lawsuit
Claude Perry worked at times as the city’s economic development director, the city’s fair housing officer and the city’s personnel director.
Perry was a prominent Ansonia citizen, heavily involved with the city’s NAACP chapter and numerous community events. He was 68 when he died after a battle with cancer.
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On July 25, 2011, Perry stopped working at Ansonia City Hall due to his illness. However, he remained a full-time employee with Ansonia until his death on Sept. 19, 2011.
“Several months prior to Mr. Perry’s death,” Anthem issued a group insurance contract to Ansonia, which included the terms of his life insurance.
On Sept. 30 -— 11 days after he died -— a claim for the life insurance benefit was submitted to Anthem by the city.
Anthem denied the claim on Oct. 28, 2011, stating that the insurance policy became effective on Aug. 1 — a date when Claude Perry “was not actively at work.”
Anthem officials also denied an appeal of their initial decision. The company said Perry wasn’t working when the policy went into effect.
Furthermore, Anthem officials said that Claude Perry was not on a list of covered employees given to the company by Ansonia, according to the lawsuit.
The Settlement
John Marini, the city’s corporation counsel, said Monday (Nov. 24) the city was at fault for Perry’s widow not receiving the life insurance benefit.
He said when the city moved its insurance policy over to Anthem, they left Perry off a “census” of employees to get policies, and never corrected the mistake.
“The city made a substantial error in number one, not carrying Mr. Perry over to the new life insurance carrier, and number two, not notifying him that the change was being made,” Marini said.
While researching the lawsuit, the city simply “came to the conclusion that this money is owed” to Virginia Perry, Marini said.
He said one payment of about $20,000 has already been sent to Perry, to be followed for another of about $10,000.
A message was left with Virginia Perry’s lawyer, Roger Agatston, of Monroe.
Aldermen unanimously authorized the settlement after discussing the lawsuit in executive session at their meeting Oct. 14.
Executive sessions are closed to the public, but elected officials are allowed to discuss pending litigation secretly, per the state’s Freedom of Information Act.