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I am disabled and for the past year I was dependent on my monthly benefit checks I was getting from my life insurance company for long term disability. The amount of those benenfits were $3,195. In March I quailied for SSD at a monthly rate of $3, 006. I notified the Insurance company because it was a requirement. A month later they send me a later stating I now owe them $27K in overpayments and the money is expect right away. When I became disable and quailied for my monthly benefits throught the life insurance company it was never explained to me that the money they were sending to me was covering the SSD money I was expected to recieve. The only thing explained to me was that once I quailify for SSD my benefits would be reduce greatly but I would still recieve a monthly alloment. The I recieve a letter from SSD saying they overpaid be by $4K and they are reducing my payment to recover the money. How can such companies be allowed to do this to the average citizen? Can I fight

Submitted: 194 days and 4 hours ago.

Category: Finance

Value: $15

Status: AWAITING CUSTOMER ACTION

Maryland

Already Tried:
Spoke with the Insuurance company. Offer to send 10K and start a payment plan. Also sent a copy of the overpayment charged of $4K by SSD to get the overpayment amount reduced. The insurance company will contact SSI, get there records and re-evaluate the error.

Posted by Smartpants 193 days and 21 hours ago.

Answer

Good Evening XXXXXXXXXX,

Well, there is good news based on ERISA, you can take your insurance company to court and fight the demand of repayment. But, based on your policy you would have a certain amount of time to take this action. Of course, you most likely have to hired an Attorney with knowledge of ERISA laws, an Attorney could look over your policy and tell you the chances of overturning the Insurance company's decision.

the problem with SSD may be a little more complex but probably much easier to deal with. You should contact your SSD case worker and get all the facts and of what their considered to determine an overpayment. You can also file a claim and have your day in court to contest SSD's decision. In the meantime, they may have to continue paying you your regular benefits.

It seems like your biggest problem is the Insurance company, many company rely on the average person to just lay down and take whatever they dish out. It does not sound like you are that type of person.

I wish you the best and hope my respond assists you in your situation.

Take Care~!!

Accepted Answer

Dear Friend,

Sorry to hear this happened to you. There is a answer above my answer given by our friend, but I beg to differ and therefore I am giving my answer below. I hope Smartpants would not mind.

There are two aspects involved here. FIrst let us take a look at your Insurance Company. If you are sure that you were explained that the payouts would be just reduced and nothing more would happen than this, I think your insurance company has resorted to to misrepresentation and wilful concealment of facts to you and yes ... you can fight against it.

For this you can apporach National Arbitration foram as they also cover Insurance related matters and take the arbitration in your favor http://www.adrforum.com/main.aspx?itemID=246&hideBar=False&navID=70&news=3.
This would be a cheaper alternative than filing a lawsuit. You can reach National Arbitration Forum at P.O. Box 50191
Minneapolis, MN XXXXX-XXXX
USA
E-Mail: XXXX@XXXXXXXX.XXX
Website: www.adrforum.com
Telephone: XXX-XXX-XXXX, or toll-free XXX-XXX-XXXX
Fax: XXX-XXX-XXXX

Regarding your SSD Issue, please note that The first thing that usually happens when an overpayment occurs is that you will receive a "Notice of Overpayment." When the overpayment is work-related, a breakdown of your reported earnings is included in the notice. If you disagree with any of the information Social Security is basing their decision on, you have the right to file an appeal. If you agree with the overpayment amount, then the next step is to begin repayment negotiations.

Coming to your issue, since you do not agree with this, you need to go in for a appeal against this. Please note that Social Security is allowed to use only IRS refunds to offset SSDI overpayment debts. This option is only available if you are: 1.) no longer receiving SSDI benefits, and 2.) refusing to make payments to Social Security.

To file an appeal, you will find detail Appealing process at http://www.ssa.gov/pubs/10041.html
you can call them toll free at 1-800-772-1213. You can locate your nearest field office using your zip code at https://secure.ssa.gov/apps6z/FOLO/fo001.jsp

You are on a sound standing and you have facts in your favor. I am sure, if options listed above are exercised, both your Insurance Company and the SSD people will be taken care of.

I hope the above helps...
Regards,

Accepts:
Expert:	Milan Vaishnav
Pos. Feedback:	99.5 %
Answered:	5/13/2009

Financial Advisor

Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting

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Maryland Already Tried: Spoke with the Insuurance company. Offer to send 10K and start a payment plan. Also sent a copy of the overpayment charged of $4K by SSD to get the overpayment amount reduced. The insurance company will contact SSI, get there records and re-evaluate the error.

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Maryland

Already Tried:
Spoke with the Insuurance company. Offer to send 10K and start a payment plan. Also sent a copy of the overpayment charged of $4K by SSD to get the overpayment amount reduced. The insurance company will contact SSI, get there records and re-evaluate the error.