Recently applied for a one time death benefit from Mother's disability/supplemental insurance policy. I provided all the necessary info. and forms to prove she was in fact disabled and died as a result of her illness. Insurance co. refuses to pay my survivor's benefit due to the company's prior overpayment of benefits to my Mother before her death. The insurance company has applied my survivor's benefit to the overpayment of claims and states that they will not pursue reimbursement of the overpayment of benefits @ this time and there are no additional benefits due on that account. Isn't it their loss that they made the error in payment of benefits to her before she died? Am I still entitled to to survivor's benefit?
Orignal From: Can insurance co. deny survivor's benefit due to prior overpayment of benefit to policyholder before death?
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