Life Insurance Arkansas AR
Reader’s Question
My mother received a life insurance benefit two years ago from my father’s policy. The life insurance company in Arkansas is now calling her saying they made a mistake and that she has to pay them back. Apparently, they paid her someone else’s policy that had the same name as my father’s. Is she in any way obligated to pay the insurance company back? What can she do? The money is now tied up in annuities and she can not touch it. I live in Arkansas.
Dian
Little Rock, AR
Yes. She is obligated to pay the life insurance company back. Otherwise, she will be sued. Technically, insurance companies are allowed to make mistakes (certainly this one is a whopper!).
With regards to the money, annuities can be cashed in just like most other assets. She needs to ask the insurance company in Arkansas to provided documented evidence of such mistake. The Arkansas insurance company can send you the name and address and date of death of the person who died who has your father’s name so you can verify at the Social Security Death Index the truth of such claim.
To know whether or not it is a scam, you need to see specifics of the insurance policy in writing. Every correspondence you make with the insurance company should be documented in writing just in case it will reach court.
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