Laws in your state dictate how you are compensated by insurance companies and Social Security. You may receive Social Security payments retroactive to a certain date, but your insurance agreed to make payments when you purchased your policy. You have paid premiums to your insurance company, and payments must be forthcoming. Social Security steps in when you win a disability case, and the law in your state determines how much your insurance company must be compensated.
Your state may require you to repay your insurance company using the retroactive judgment you receive from Social Security, and you will continue to receive payments from Social Security after your insurance company stops paying you. State rules require partial payment, and there are some states that require no payment at all. The rules for your payments may change at any time, and you must consult your local insurance commissioner for updated rules.
Payment requirements from your insurance company may take your judgment immediately, or you can set up a payment plan with your insurance company. The state will send you notification of your judgment, and you must follow up on the judgment quickly. You may be fined by the state, and your insurance company may charge interest on your retroactive payment.
You must not do what your insurance company says when you receive your Social Security judgment. A Social Security judgment does not automatically allow your insurance company to ask for repayment. You must do quite a bit of research on the state rules for insurance repayment. You must call the insurance commissioner for clarification, and you may submit a request to the insurance commissioner for help dealing with your insurance company.
Insurance providers can be pushy when expecting payment, and you must not send payment without a ruling from the state. The state will help you make payment arrangements, or you may keep the money you receive after your Social Security judgment. You may be asked for repayment when you win your Social Security, but you must clarify the ruling first.