Ins. company paid wrong beneficiary

[HTRACY]

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

My father pasted away in April and my brothers and I found a life insurance policy that he had thru an account with a local credit union. We applied for the claim and were told that his ex-wife was listed as the beneficiary by the claim processor. The claim processor said that thru information found by his legal team if we provided a copy of the divorce decree then we, his heirs, would receive the insurance. We provided it and they paid us 3 our equally over 2 months ago. I just got a letter in the mail from The Hartford saying they made a mistake and are requesting we send the money back.

My question is, can the insurance company make us pay back the money they gave us since it was their mistake? Ive been told it varies state to state.

 

[anteater]

I just got a letter in the mail from The Hartford saying they made a mistake and are requesting we send the money back.

What was the mistake?

Tell them, "No, thanks" and see if they sue.

Ive been told it varies state to state.

"Told" by whom?

 

[tranquility]

I'd make them prove up their case as to why there was a "mistake". If you think the money yours and you did not misrepresent anything, if they don't prove it up informally, make them sue you for conversion.

But, if they give a legitimate explanation (including code sections), I might give the money back to avoid the hassle and expense of court.

If they get all authoritative and demanding, hand them the card of your attorney and tell them to talk with him.

 

[FlyingRon]

I'm confused as to why they are asserting there is a mistake. If she was the beneficiary at the time of divorce, then indeed Missouri law considers it as if she predeceased him when it comes to determining the beneficiary (most likely now to the presumably intestate esteate?)

 

[HTRACY]

There is a statute that the legal team at The Hartford was not aware of at the time they issued us the checks. The claim processor said that the legal team at approved it based on the latest information available to them at the time and issues the checks to us. The ex-wife hired an attorney who found a more up to date statute stating that even though they are divorced she is on the insurance policy as the beneficiary and therfore they are requesting the money back. I was also told by the claim processor that some states have laws in place to protect people who receive insurance checks from companies that then come back to say there were incorrect in giving the claim. Im trying to find out if Missouri has something like that in place to protect us. Anyone know?

 

[Betty]

Per one of my life ins. manuals (& I also worked for a life ins. co. in Mo.), in Mo., if the ex is still living, she receives the proceeds per Mo. court cases. Any payments to "secondary" beneficiaries would only happen if the ex died before the insured. The insured needed to change the bene if he wanted someone other than the ex to receive the benefit.

However, you might run it by an attorney particularly since you already received the money - that's about the only thing I can tell you. Or, you could hold on to the money & wait & see if you are sued which "probably" you will be. The court will then decide who gets the proceeds - as I noted, there are previous court cases where the proceeds went to the ex.

Since the co. already paid out the proceeds to you (& the other 2), a judge "might" make the co. pay out the proceeds twice if it is determined the ex should have received the proceeds. It's hard to know what any individual judge/court will do.

 

[tranquility]

I agree the OP may not have rights to the money. I know this varies from state to state, but, the Insurance Company may be right.

But, what is the cost/benefit calculation to the OP of giving the money back up front? Court would be a hassle, but I'd certainly make the insurance company jump through hoops to prove they should get the money. If I were certain I would lose in court after the proof, I'd give it to them. If not, I'd make them prove it to the judge. Maybe throw in a promissory estoppel for any damages from reasonable reliance on having the money. That's not a winner, but may give the judge a chance to give the OP something for his trouble.

 

[FlyingRon]

Per one of my life ins. manuals (& I also worked for a life ins. co. in Mo.), in Mo., if the ex is still living, she receives the proceeds per Mo. court cases.

Can you double check that? According to my research that if the beneficiary election is prior to the divorce and not otherwise addressed in the property settlement, MO law says that the treatment of the former spouse is as if she predeceased the insured.

 

[Betty]

That's what is in my life ins. manuals/books & what we would have done -
pd. it to ex. My reference just says court cases have determined Mo. as
a state where ex get proceeds if insured did not change bene after divorce.

It seems the ins. co. here is asking for the proceeds back to pay to ex - they must have something to back that up. However, as I said previously, if it goes to court who knows what any individual court/judge might decide though usually they look at prior court cases.

I don't have any actual statute/law # either way. I only know what my
references say & what the co. I worked for would have done. I don't know
what the ins. co. in OP's post might have.