Legal Question in Social Security Law in Maryland
Social Security Release of Information to Insurance Company
I was recently approved for Social Security disability. Prior to that I had been receiving Long Term Disability benefits from my past employeer. The LTD insurance company now wants reimbursement for the money they have paid out, once I receive the back payment from Social Security. I understand this is due to them but, the insurance company wants me to sign authorization to obtain a copy of my SS claim file. They sent a Social Security consent for Release of information to me to sign and return to them. The LTD insurance company claims that they can ''apply significant weight'' to the Social Security award of benefits, if needed. And that it will weigh heavily in my favor as ongoing disability determinations are made. Should I sign this consent for release of informaiton? What are the pros/cons?
1 Answer from Attorneys
Re: Social Security Release of Information to Insurance Company
The question is difficult to answer without reviewing the terms of your LTD contract. Most LTD contracts require your to reimburse the insurance company as you have stated.
Many contracts require you to give a copy of the Social Security Decision but not all policies require this. If you were approved at the initial or Recon level, the decision will not be detailed but if you were approved by an ALJ, that decision will have much more detail.
Also many LTD policies have limits (i.e. max 1-2 years of benefits) if your disability is mental. The insurance company will use the information in your SS file against you if it can. But it may help to show continuing, on-going disability, too.
You need to retain the services of an attorney who has experience with such insurance polies and the state or federal law (ERISA) that covers your policy to determine what you must do to comply. Remember, if you do not comply, the insurance company can withhold future benefits or take other action.
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