Private Disability Insurance Reimbursement

In some cases a Social Security applicant is already receiving payments from a private disability policy.  If they are denied Social Security benefits and request a hearing it can be many months before a ruling is made in their case.

It is important to understand that some private disability policies include a reimbursement clause which may require the claimant to reimburse the private insurance company if they eventually receive Social Security Disability payments covering the same period of time.

It is crucial that a claimant understand his or her rights and obligations in this circumstance.  I have seen cases where the claimant is unaware of their contractual obligation to reimburse the disability carrier and they were eventually sued by the insurance company to recover this money.  In order to avoid this dilemma we strongly recommend contacting the private disability carrier to see whether there is a reimbursement clause in the insurance policy.  If there is, you should request a copy of the policy to confirm that reimbursement is necessary.

If you have questions regarding your Social Security claim, we would be happy to speak to you.