Question
Does Lincoln Financial apply offsets to all claimants equitably?
Can Lincoln Financial apply overpayments offsets to some and not others? They waited over 3 1/2 years to inform my son with brain cancer that they were going to offset his monthly check with his sons disability amount. They demanded almost 40,000 in backpay. I question this writing a letter to the President. Within 24 hours someone contacted me stating they must apply their offset provision equally to our claimants however the letter said they would waive the overpayment if I agree to drop the matter. I never agreed to anything but I’ve never heard anything else from them. They continue to offset his monthly benefit. To me this does not seem to be handling all claims equitably and fairly. Could another claimant who has been burdened with offset sue if this information was known?
Answer
Jerry, yes, Lincoln Financial may seek to recover an overpayment of benefits pursuant to the contractual language of your policy. It may also, on a case by case basis, waive some or all of any overpayment of benefits. It is unlikely that another claimant would prevail in an action against Liberty Mutual for agreeing to waive an overpayment simply because they agreed to waive an overpayment in another case.
