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| *Ostroff, Fair and Company>>>Insurance |
Insurance fraud by emplyer? |
i am out on comp herniated disc comp is paying have been paying for long and short term disability thru work for 3 yrs our company was bought out in march and payments were still deducted from our checks weekly since they bought us out in march i called the insurance company and our policy was cancelled last april 1st for non payment and because it was a group policy the individual policy holders were not notified but new company still deducted payments from our checks we thought we were covered no that i may need to use the disability i find out we are not coveredwhat can i do im afraid to cause a stink as i need my job when i get better I agree with "Deep5223," your legal claim rests with your employer. You and all your fellow employees should see an attorney right away. However, I can conclusively state that this isn't insurance fraud; although the premiums were due to the insurer, they weren't stolen. But again, this doesn't mean your employer hasn't violated other laws, including its fiduciary responsibilities under ERISA. A court will probably force your employer to pay you what you would have received from the insurer if the coverage was still in force, plus any applicable interest, attorney's fees and damages. In the meantime, if your employer offers to refund the premiums to you, DO NOT UNDER ANY CIRCUMSTANCES CASH THE CHECK until you've spoken with an attorney. Cashing the check is the equivalent of accepting the reimbursement as an equitable settlement. Source(s): 16+ years insurance industry experience; 9+ years insurance law experience You have to ask the management what is going on...... maybe they have changed insurance companies. Maybe they are trying to scam you..... you will never know untill you ask. You need an attorney. If they were deducting premiums and not sending them to the insurance company, your claim is with them. First I would ask them what they did with the premiums and if the answer is not satifactory, my next call would be to an attorney. Definaztely find out what is going on. There is a small chance the company is self-insuring, but I would doubt it. OK, two things. If your company was bought out, it's likely that there's a NEW disability carrier. You'll need to contact your HR department to find out that information. If not, you've got bigger problems, as failing to remit insurance premiums is usually a precurser to bankruptcy - and you might not have a job anyway. You should THEN contact your state department of labor, to file a complaint. Also, this COULD just be "oops I forgot to add them" on the part of the employer. If it is, there's an insurance coverage that they might have purchased, called "employment benefits liability" coverage. This would be a claim under that coverage. And if they DON'T have that coverage, well, then they should be offering to pay out of pocket, because it's a cut and dried lawsuit. I'd hire a lawyer as a LAST resort, because liabilty is pretty clear here, and the lawyer will take 40% of any payout. agent, 20+ years |
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