If I got long term disability and then sued and won my claim, why was I made to pay back a portion of the disability money?

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If I got long term disability and then sued and won my claim, why was I made to pay back a portion of the disability money?

Asked on July 31, 2011 South Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The reason why you had to pay back a portion of the judgment that you received and apparently collected upon concerning your personal injury action is that you sued a third party for your injuries and in the interim, you received long term disability benefits either from a governmental entity or a personal insurance policy that you placed.

Either, under state statute or the terms of your long term disability insurance policy, require that any monies you obtain as a result of any third party lawsuit from which your long term disability arose, you have to make reimbursement for the benefits you received. Otherwise, you end up double recovering for your injuries.

Good question.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The reason why you had to pay back a portion of the judgment that you received and apparently collected upon concerning your personal injury action is that you sued a third party for your injuries and in the interim, you received long term disability benefits either from a governmental entity or a personal insurance policy that you placed.

Either, under state statute or the terms of your long term disability insurance policy, require that any monies you obtain as a result of any third party lawsuit from which your long term disability arose, you have to make reimbursement for the benefits you received. Otherwise, you end up double recovering for your injuries.

Good question.


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