UNUM overpayment error -we're doomed.

What is the name of your state? PA
I became disabled in 1997 and through my UNUM LTD policy, was awarded benefits (not without a bit of a fight...). I received my full benefit until I won SSDI benefits, at which time my UNUM benefits were reduced and I dutifully sent them their check for overpayment.
Fast forward: July 2006. I receive a call from UNUM/Providence informing me that I owe them backpay from benefits my 2 children received through SSDI from 1997-present. On closer inspection of my paperwork - it, indeed, certainly looks like this should have been part of the calculation: The agreement I had to sign for them to pay benefits DOES state: "...if Social Security makes an award, UNUM will reduce my monthly policy benefit by the amount of the Social Security benefit (and my spouse and family if applicable...).


They have reviewed my case at least three times and they have had all SSDI paperwork since the beguinning of the application process (including my attorney's notes). Since I moved from GA to PA in 1999 , I've had to be in contact with them at least twice as well (tax changes, direct deposit issues...) - I can't believe this hasn't been picked up until now (the reviewer that called me was suprised as well..). I wrongly assumed this had already been figured in ! If my calculations are correct, we will owe them over 50K. Do I have any recourse at all ? This WILL mean our life will be destroyed.

A lawyer would have to read the exact policy language to see if they could claim an offset for the benefits paid to your family (I confess, I do not know, although it seems a bit odd to me that they should), and then there is an issue as to whether IF the policy language did purport to apply, there are other laws, rules or court decisions that have rendered the policy language inoperable, or if there was an error, eliminated the ability to collect for errors . These are issues 1 and 2 and 3..

The are also several other matters to consider, and some may help you. First, there is a statute of limitations, and from what I recall, they should not be able to collect for allegedly erroneous payments beyond the statute of limitations. They had, all the facts, and thus they may be limited to collecting only for the past few years, not since 1997. Second, rather than pay it all at once, they likely would be willing to set off anything you owe against a part of future benefits. That could be negotiated.

Third, UNUM Provident has engaged in multiple outrageous conduct toward LTD beneficiaries. I would not trust anything they claim. Get thee to an insurance lawyer. Buy some of that lawyer's time to get a candid analysis. It will be cheaper than giving them $50k, with interest.