Legal Question in Business Law in California

insurance payment

My long term disability insurance company improperly denied my payments for a few years, now they sent me a lump sum. the big check pushes my tax to the highest level.

because of that, I end up losing money. Does the insurance company responsible for my loss?

Can I sue the insurance company for the loss?


Asked on 5/30/07, 1:27 am

1 Answer from Attorneys
Jeb Burton The Burton Law Firm

Re: insurance payment

Have you spoken to a CPA? I believe you should be able to apply the Insurance money to previous years, filing an amended tax return. If that is not the case, you might have a claim against the insurance company for the interest and other hardships (assuming the denial was unreasonable). As far as increased tax liability.... probably not, or at least if you do have a claim it will most likely not stand up on it's own.

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Answered on 5/30/07, 12:07 pm


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