Life Insurance Over Payment

[dhortens]

What is the name of your state (only U.S. law)? GA

My mother, brother and I were contacted by a life insurance company after the death of my father. We were contacted when my Dad's current wife submitted a claim on the policy and was denied since she was not a named beneficiary. We submitted the paperwork required by the insurance company and they sent a check to my mother. Roughly 10 days later, they are asking for the money to be returned. The reason given is that a break in service was experienced between the time my Dad retired and when he started working for the government again. He did not submit a new beneficiary form so it defaults back to his current wife. Although the old paperwork has my mother, brother and myself documented as beneficiaries. Is my mother obligated to repay after such gross incompetence?

 

[HomeGuru]

What is the name of your state (only U.S. law)? GA

My mother, brother and I were contacted by a life insurance company after the death of my father. We were contacted when my Dad's current wife submitted a claim on the policy and was denied since she was not a named beneficiary. We submitted the paperwork required by the insurance company and they sent a check to my mother. Roughly 10 days later, they are asking for the money to be returned. The reason given is that a break in service was experienced between the time my Dad retired and when he started working for the government again. He did not submit a new beneficiary form so it defaults back to his current wife. Although the old paperwork has my mother, brother and myself documented as beneficiaries. Is my mother obligated to repay after such gross incompetence?

**A: hard to say but it looks like the insurance company is correct.

 

[tranquility]

If it's not legally yours, it's not legally yours. But, it's in your hands now and you have a legitimate claim. (Notwithstanding their default beneficiary policy.)

I'd make them prove up their claim first. In writing and in detail.

 

[Zigner]

If it's not legally yours, it's not legally yours. But, it's in your hands now and you have a legitimate claim. (Notwithstanding their default beneficiary policy.)

I'd make them prove up their claim first. In writing and in detail.

What claim is that?

 

[tranquility]

What claim is that?

The fact that:

We were contacted when my Dad's current wife submitted a claim on the policy and was denied since she was not a named beneficiary. We submitted the paperwork required by the insurance company and they sent a check to my mother.

and:

Although the old paperwork has my mother, brother and myself documented as beneficiaries.

The claim they were legitimate beneficiaries but for this "default back to current wife" theory of the insurance company.

Even the insurance company thought the person who originally asked was not the beneficiary and, after the paperwork was filed, found the OP's group was. That is, until they found some default theory to give the money to someone else.

That claim.

 

[Zigner]

The fact that:
and:


The claim they were legitimate beneficiaries but for this "default back to current wife" theory of the insurance company.

Even the insurance company thought the person who originally asked was not the beneficiary and, after the paperwork was filed, found the OP's group was. That is, until they found some default theory to give the money to someone else.

That claim.

Due to the break in service, the documents were no longer valid. Basically, they issued a check against an old, invalid policy instead of against the new, valid policy.

 

[tranquility]

Due to the break in service, the documents were no longer valid. Basically, they issued a check against an old, invalid policy instead of against the new, valid policy.

Good argument. (With the exception that neither contract should be related under that theory. Did they pay on contract #A12345 or #B4876?) But, prove it up to my satisfaction and I might not make you sue me to TRY to get the money back.

What possible reason would the OP have to give the money back now?

 

[dhortens]

Gross Incompetence

The insurance company didn't follow through on their own policies and procedures before making a payment. They contacted the old policies beneficiaries and denied the current beneficiary's claim. It wasn't until 10 days later that they realized their mistake. Remember, the old beneficiaries did not contact the insurance company and didn't know about the policy until the original claim was denied. How's fault is it when the claims department doesn't do their job?

 

[tranquility]

Stop with the silliness about who is doing their job. If you actually agree the money is not yours ("If it's not legally yours, it's not legally yours."), give it back.

If you know it's not yours, not giving it back could be a crime.

 

[Betty]

Agree; if the proceeds aren't rightfully yours & you know it, then you need to return the money. Errors happen.

 

[dhortens]

Right Is Right

Right is right. I will wait on the documentation, something in writing before sending it back. Thanks to everyone for the advice.

 

[Zigner]

Right is right. I will wait on the documentation, something in writing before sending it back. Thanks to everyone for the advice.

There is no question that you should verify what they are saying...but set the money aside until you are 100% sure either way.

 

[Betty]

Right is right. I will wait on the documentation, something in writing before sending it back. Thanks to everyone for the advice.

You're welcome & the right thing is to return the check after verifying the money was actually sent in error. (which "seems" to be the case)