Legal Question in Insurance Law in Mississippi

Overpayment of Death Benefit

Jane Doe receives life insurance proceeds (she was the only beneficiary listed), she writes checks from proceeds to her children (proceeds did not go through an estate, they were just transferred into a money market account and Jane was given checks to write on the account as she sees fit) Two months later, the insurance company says she was overpaid benefits by XXXX dollars. The company has placed a lien on her home and property and has siezed bank accounts etc that belong to her children and their spouses. Is the insurance company allowed to do this?


Asked on 9/05/03, 9:22 pm

1 Answer from Attorneys

Austin Nimocks Austin R. Nimocks & Associates, P.L.L.C.

Re: Overpayment of Death Benefit

Probably, though I don't see the basis for the insurance company seizing items that do not belong to the beneficiary who was paid. However, bank accounts cannot generally be seized w/o a court order, so at some point a lawsuit was filed and an order was obtained. You need to get all of your paperwork together and sit down with an attorney to review.

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Answered on 9/08/03, 9:03 am


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