credit card insurance

my mother lives in calif. my father had a sears credit card and insurance in case he passed away it would be paid.he passed away on 12/24/95. it was effective 7/2/93-12/24/95. insurance payment was paid to sears on 2/12/95 $4176.06. the insurance company did an audit and discovered an error. my mom received a notice of underpayment plus interest on 2/5/01 in amount of $2144.81. she had filed bankruptcy and it was discharged on 12/21/99. the certificate for the insurance says that the coverage terminates when the acct holder dies. the insurance company sent the payment to sears which applied it to my fathers acct which no longer existed, and told my mom there was a balance. the recent credit report she has shows a zero balance as of 4/99. she was told she probably will not get the money because they are saying she owed money, but the acct was included in the bk. isn't she entitled to that money as the beneficiary, and also because the certificate of insurance states its coverage ends in death of holder. and they also show zero balance, and paid in full.

[Jeter]

Good luck in trying to get your $$ on this one. The credit card insurance option is one of the most difficult things in the world to collect on. I would never choose this option on any card. The insurance companies backing these cards will find any loophole possible in every case to try to get out of paying off your due money. You can fight this but you will probably lose on a technicality and waste even more $$. The fine print in these insurance contratcs is incredibly difficult to diseminate. Insurance companies in general hate to pay on claims so they look for anything they can legally use to deny your claim.