IP Law Daily, TRADE SECRETS—N.D. Ill.: Jury to decide trade secrets case involving insurance agents, (Jan 27, 2026)

By Brian Craig, J.D.

A reasonable jury could find that the insurance company derives economic value from the secrecy of its consumer, pricing, and lead lists.

The federal district court in Illinois has held that misappropriation of trade secrets claims related to consumer, pricing, and lead lists in an action brought by Bankers Life and Casualty Company against a competing insurance company, American Senior Benefits, and several agents, can proceed to a jury trial. In largely denying motions for summary judgment, the court held that a reasonable jury could find that the insurance company derives economic value from the secrecy of the lists and that most of the trade secrets claims can proceed to trial. The court also held that tortious interference claims over non-solicitation contracts with insurance agents and a breach of contract claim can proceed to trial (Bankers Life and Casualty Co. v. American Senior Benefits, LLC, No. 3:22-cv-50009 (N.D. Ill. Jan. 23, 2026)).

Bankers Life and Casualty Company (Bankers Life) and American Senior Benefits (ASB) are two companies in the insurance industry. The two companies have different business models, but agents of both firms vigorously compete in selling various insurance policies to senior citizens. Over the past decade, Bankers Life alleges that many of its former agents have been recruited to join ASB and have, in the process, misappropriated Bankers Life’s trade secrets. In response, Bankers Life has filed a series of lawsuits against their former agents, ASB, and ASB’s affiliates. In 2018, Bankers Life and ASB agreed to settle their disputes by adopting an agreement known as the “Protocol,” which requires ASB to implement procedures to protect Bankers Life’s trade secrets. Bankers Life alleges that ASB breached the Protocol numerous times. Bankers Life filed a new lawsuit in 2022 against four entities: ASB; ASB’s corporate parent, Integrity Marketing Group, LLC (Integrity); and two of ASB’s regional affiliates. Bankers Life brought claims for trade secret misappropriation under the federal Defend Trade Secrets Act (DTSA) and the Illinois Trade Secrets Act (ITSA), breach of contract, tortious interference with non-solicitation contracts, and civil conspiracy under Illinois law. Each of the defendants moved separately for summary judgment.

Trade secrets. The court held that the misappropriation of trade secrets claims under the DTSA and ITSA over consumer, pricing, and lead lists can proceed to trial. A reasonable jury could find that Bankers Life derives economic value from the secrecy of its consumer, pricing, and lead lists. Bankers Life provided a precise definition that lead lists “are compiled through a combination of third-party data acquisition, proprietary filtering, and internal marketing efforts.” This definition is specific enough for the court and a jury to determine whether or not the lists were trade secrets.

Bankers Life kept its secrets protected by passwords, employed role-based access controls, regularly monitored its systems for suspicious downloads, and trained its employees on document confidentiality, among other things. This is ample evidence from which a reasonable juror could find that adequate protective measures were taken to protect the trade secrets.

The court found, however, that the misappropriation of trade secrets claims based on marketing and compensation trade secrets cannot move to trial. The extremely broad language that Bankers Life uses to define these secrets makes it impossible to pin down exactly what Bankers qualifies as a trade secret.

The court also concluded that ASB’s corporate parent, Integrity, provides some support to its subsidiaries. But this is not sufficient, on its own, to establish vicarious liability. The corporate parent did not exert sufficient control over the subsidiary. Therefore, the court granted summary judgment that the claims based on so-called market and compensation trade secrets, as well as the claims against the corporate parent, Integrity, cannot proceed to trial.

Tortious interference. Next, the court held that the tortious interference with contractual relations claim can move forward to a jury trial. The court rejected arguments that the non-solicitation agreements are invalid and unenforceable and that the tortious interference claim is preempted by the Illinois Trade Secrets Act.

Breach of contract. In addition, the court found that Bankers Life put forward sufficient evidence for a jury to find that ASB breached the contract. The Protocol requires ASB—not the agents—to notify Bankers Life when a former employee joins ASB. The evidence shows that ASB failed to notify Bankers Life after at least one agent was recruited.

Civil conspiracy. Finally, the court held that the civil conspiracy claim fails. Bankers Life failed to respond to the motion for summary judgment and thus waived the civil conspiracy claim.

The Case is No. 3:22-cv-50009.

Judge: Pallmeyer, R.

Attorneys: Cornelius Edward McKnight (McKnight & Kitzinger, LLC) for Bankers Life and Casualty Co. Michael P. Lynn (Lynn Tillotson Pinker & Cox, LLP) for American Senior Benefits, LLC.

Companies: Bankers Life and Casualty Co.; American Senior Benefits, LLC

Cases: TradeSecrets IllinoisNews GCNNews