When your claim takes several months to get approved and the insurance company pays a retroactive lump sum amount for those months, should they also pay interest on that?
Seems like they should… After all I have been paying interest to my creditors all this time. I think that when it goes to court, judges include interest. Is it worth bringing up. I’m really determined not to be taken advantage of in any way by the insurance company.
I am not aware of an insurer paying interest. If they forget to pay you on an approved claim then you can ask for any NSF fees or extra charges incurred due to their error.
But if they delayed in approving, I think you are out of luck. Unless it was an error of their doing.
I think you are asking for troubles or an unneccessary sqabble.
This is a very good question. Disability insurance is a contact, so if interest is to be paid for delays in benefits, then that would have to be set out in the contact (insurance policy). I have never see it included in a policy.
In the example you give (Creditors), you have a contract with them includes a clause requiring interest.
However, insurance companies will always pay interest on past benefits owed in cases that go to litigation (legal appeals) because the interest is required by the rules of court. So there is a rule requiring it.
David Brannen
Disability Lawyer with Resolute Legal
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