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  1. #1
    TShanks is offline Junior Member
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    Jun 2008
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    Insurance Co made a mistake

    Iowa

    My mother rec'd a insurance benefit two years ago from my fathers policy, The insurance company is now calling her and saying they made a mistake and that she has to pay them back. Their mistake was that they paid her someone else's policy that had the same name as my father.
    Does she in fact have to pay this back? Could this be a scam? What should she do?
    She now has this money tied up in annuities and she can not touch it.
  2. #2
    Dandy Don is offline Senior Member
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    Apr 2002
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    9,495
    Yes she does have to pay it back. If she doesn't she will be sued in court.

    Insurance companies are allowed to make mistakes, although this one is a whopper.

    How much are they asking her to repay? Annuities can be cashed in just like most other assets. She needs to be asking the insurance company to provide documented proof of the mistake they made--sending them the name and address and date of death of the person who died so she can check the Social Security Death Index to see if they have told the truth about that.

    DANDY DON IN OKLAHOMA (tiekh@yahoo.com)
  3. #3
    TShanks is offline Junior Member
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    $35,000
    She only talked to someone on the phone, could this possibly be some sort of scam? Should she hire an attorney?
  4. #4
    Dandy Don is offline Senior Member
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    It may be a scam, but I doubt it. She needs to ask the person/insurance company to send her a letter about this requesting the repayment. At this point she has no need for an attorney.
  5. #5
    ErinGoBragh is offline Senior Member
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    Also just a note, the annuity may have steep penalties if your mother cashes it in early.. that depends on a variety of factors though and you would need to have your mother speak with the company who issued the annuity.
  6. #6
    momm2500 is offline Member
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    pennsylvania
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    is the $35,000 the full amount they paid her? how much was dad's policy? if this is not a scam, all of this should be outlined in a letter from the insurance company. for instance if dad's policy was $10,000 and they paid her $35,000......she should only pay back $25,000 not the full amount that they paid her. It is very rare that an insurance company would just make a phone call to try and recoup money. To cover their butts from law suits and would definitely send a letter, just in case they were to get sued in court!
    Last edited by momm2500; 06-12-2008 at 02:36 PM.
  7. #7
    moburkes is offline Senior Member
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    Nov 2005
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    South Cackalacky
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    How did this happen?
    Did dad pass away at the time the benefit was paid out?
    Did she sign paperwork? Did the insurance company attempt to verify her information?
    My new signature:
    Originally Posted by arazi
    I'll take you on one-to-one in a volcabulary test anywhere, anyplace, anytime.

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