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Life Insurance Company Processes claim - sends check - then says it was paid ten years ago, wants money back. Need Help.
Anonymous4 views1 answers
I was the executor of my father's estate who passed away in 1999. He had an annuity payable on his passing. This March (2011) annuity company writes and informs me that the annuity was not cashed. They ask me to send in a certified copy of my dad's death certificate and letters testamentary. I went to court, got everything and sent it in. They processed the claim & sent me the check. I also cashed the check. In the hopes of receiving the money, I incur expenses to upgrade my condo. Now, they tell me that they made a mistake a want the $ back. They sent me a front & back copy of the check that they claim I cashed in 99. My bank does not keep records dating back to 99 - I have no way of knowing.
Need Help - they misguide me, play with my emotions, make me incur expenses & now want it back?
I represent several life insurance carriers, and also represent parties in dispute with life insurance and disability carriers (obviously not the ones I represent.) The carrier paid the money a second time, by mistake, and under New York law they would almost certainly recover the second payment. You have been provided with proof that you cashed their check in 1999, and a judge and/or jury will find that persuasive. If the amount of the annuity is significiant, and you do not repay them voluntarily, they will and should sue you. That, however, could be a good thing, because the insurance company will be forced to incur legal fees, and will likely look to settle the case with you keeping a portion of the overpayment. If the amount in question is less than a certin amount - different for every company -- they will huff and puff, but not pursue you. My gut feeling is that this case settles right after they sue you with you keeping between 10 and 25% of the over payment -- less if you force the insurance company incurs fees. You might consider asking them now if they would take 50% as you incurred costs and fees in reliance on the payment.
