I haven’t had to write this particular blog subject for quite some time now. In fact, the last time I wrote this type of article was when Unum was tagged by the Multi-State Commission (2002-2008)
But lately, I’ve been receiving calls from people scared to the point of near hysteria asking the question,”can the insurance company get me after-the-fact if they deny my claim? What can the insurance company do to me, can they go back in time and make me pay anything back? If I settle with them can they still get me?”
I always wonder when I’m asked questions like this whether insureds really understand the insurance they have. So, first, let me begin by saying that “the only relationship you have with your disability insurer is written in your Plan or contract document.” When those documents go away either by denial or settlement, no further relationship exists.
The levels of fear that are instilled in many insureds actually leads them to believe that the control and authority of their insurers is omnipresent and everlasting. I can understand this, in a way, because “whoever controls your money, also controls you.” People receiving disability benefits “feel” this fear of monetary control every single day.
Second, why would insurance companies spend additional money on claims they don’t have liability for? Think about this. Don’t you think it would be pretty foolish for Unum, for example, to continue an investigation after they’ve denied or settled your claim? No insurance company is going to spend money on something they have no legal obligation to pay.
Please also consider this. “Insurance companies WANT YOU GONE.” No insurance company wants to keep your expensive financial reserve liability on the books. That’s the whole point to risk management. You and your claim are too expensive to keep on the books after a denial or settlement. Insurance companies look forward to getting rid of your claim, realizing an immediate contribution to profit, and want no further involvement with you.
Fears about the insurance company most often come about from “guilt.” Perhaps you did exceed your R&Ls throughout the claim and now that you are denied, you may be afraid the insurance company will find out about it and come after you. Make no mistake…..once your claim is denied, or settled, the insurance company removes the financial reserves from their books and they are done with you for good. There is no retribution, and “No, Virginia, there is no such thing as the insurance police.”
Those insureds who have gotten to the point of being overwhelmed by fear of retribution should also be reminded that the favorable position for an insurance company is TO HAVE YOU GONE. More than that, there is no legal relationship between you and your insurer once the Plan document or policy goes away. They don’t want to hear from you, and you want to be done with them.
Again, I don’t know why this issue has raised its ugly head again, but insureds do not have to be worried. Insurance companies WANT YOU GONE, and are very happy not to hear from you again.
