by kimberly.a.duell » Thu Mar 25, 2010 08:48 pm
But two of the five will not send back their verification paperwork? Does nobody get anything then? The insurance company says they can't do anything or pay anyone their share until they have all the paperwork back so it just sits in a drawer waiting. Anyone know?
Posted: Thu Mar 25, 2010 10:43 pm Post Subject:
WHY, won't they send it in?
Posted: Thu Mar 25, 2010 11:43 pm Post Subject: insurance
Oh goodness!!!!!! (thinking outloud) If that's ALL they have to do, is send in paperwork, then why NOT?! Makes no sense, I suppose.
Posted: Fri Mar 26, 2010 02:35 pm Post Subject:
This is foot-dragging on the part of the insurer. If a death claim is divisible five ways, each portion of the claim is separate from the other. Those who have returned their "verification paperwork" are entitled to their share of the claim.
However, I actually don't know what the OP means by "verification paperwork". The normal process is to submit a death claim form -- which normally asks for the name(s) of the beneficiary and valid proof of death. Once received and it is determined that the claim is payable, the proceeds are paid. One check, five checks, doesn't matter.
Contact the Department of Insurance in your state to request assistance with an "Unfair Claims Practice" on the part of the insurer.
On the other hand, this may not be an insurance company issue, but rather a Probate Court issue. If insurance proceeds have gone to the estate, the Probate Court requires all persons with claims against the estate (including "beneficiaries") to file an affidavit of claim.
Still, as each affidavit of claim is received, the Court usually notifies the estate's attorney to release that claimant's proceeds. No affidavit, no money. But only for the person(s) who fail to return their affidavit.
Two very different processes.
Posted: Mon Mar 29, 2010 11:08 pm Post Subject: OP here...
Thank you for your replies. It was a form (like 1099) to verify address & SS # for tax purposes.
Basically I was told that there were 5 of beneficiaries on this Life Insuance policy (thru State Farm) and they had received 3 of the forms back but couldn't do anything with the policy until they received all the forms back. I thought this sounded odd as it's not an estate or anything other than a standard life insurance policy...she simply said until we receive the other's forms it'll sit here in this drawer! I just thought that didn't sound right...would understand if it were an estate or something else that would require a court or judge but it doesn't.
Does that help at all?
Thanks again!!
Posted: Tue Mar 30, 2010 02:41 am Post Subject:
KimD . . . This is nuts! Holding 100% of the death benefit while awaiting two W-9 forms relative to a life insurance death claim is a crock of you-know-what. Yes, there will be some (taxable) interest added to the death proceeds based on gains in the contract, but this is no reason to withhold funds from the 60% who have submitted their paperwork. The insurer is going to cut five checks -- they should have already written and mailed three of them. In what state is this taking place?
In California, if a death claim is not paid within 120 days of submission of proof of death, interest must accrue at the rate of 10% per year from the date of death. Other states may have different rules on this aspect of the topic.
Have to get the state Dept of Insurance where you live involved -- ASAP.
Posted: Tue Mar 30, 2010 06:16 pm Post Subject:
I am in California but the deceased lived in Oregon. I'm going to do some looking into the state department of insurance on what their laws are for OR before I call back and try to get to the bottom of this.
I just don't get why they are just letting it sit there if there is no reason to.
Thanks again for your feedback it's really helping!
Posted: Tue Mar 30, 2010 09:36 pm Post Subject:
Please, let us know what OR dept of ins. has to say..
Posted: Tue Mar 30, 2010 10:54 pm Post Subject:
I will...
Just sent an email to the Oregon State Dept of Consumer and Business Services Dept. Insurance Division, explaining what has happened. Hopefully they will be able to tell me what's right or not.
Thanks again and I will update when I hear back.
Posted: Wed Mar 31, 2010 03:57 pm Post Subject:
KimD . . .
You may need to know in which state the policy was issued. If it was originally issued in California, despite the decedent's residence in Oregon, then the CA Dept of Insurance is the proper agency for handling your complaint.
As a California resident, I would recommend making a complaint to the CA Dept of Insurance, too. They will help sort this out. Call 1-800-927-HELP, or visit http://www.insurance.ca.gov
Posted: Thu Apr 01, 2010 08:08 pm Post Subject: Update
I just wanted to post an update to this since you all were so kind to give me advice on the subject.
After contacting the OR State Dept of Insurance and using the information the nice gentleman there gave me (like they have 30 days to settle the claim from receipt of the notice of death since this policy was issued in OR...it's been well over that) I sent an email to State Farm yesterday using the "report a death" claim form on their website since just calling was getting me no where. Stated that the death had already been reported as well as put all the info I rec'd here and the info the state had given me with a note that if I didn't hear back soon that I would be filing a claim with both OR & CA.
Well guess who JUST called me with a huge apology and a bunch of lame excuses as to why it hadn't been processed yet. Yes, that would be State Farm. The woman I spoke with was very sorry for what I had been thru and that she would be personally processing that claim in the next 2 business days. Interest and all! :-)
Without your help I wouldn't have even known where to begin so I just wanted to say thanks again!
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