insurance company not re-issuing check

[dekenn]

Hello All,
I was wondering how other people handle this situation. Recently I have had a couple checks that were apparently cashed by another provider. When I call the insurance company to find claim status, I am told that payment was made and check was cashed. When I access the check on their website, it clearly is not endorsed by our office. So I have two scenarios:
The first one told me where it was cashed and told me I should go to the bank and try to find out who cashed it. I told them no, that wasn't my job. They then sent me an affidavit to sign that I did not receive the check. This affidavit has to be notarized and sent FedEx back to them. For a $60.00 check, I don't think this is worth it.
Second insurance company said they would send me a form to fill out regarding me not getting the check, (which I also haven't received yet) and when they "found" the money, they would re-issue the check. I also told them that wasn't acceptable, and asked them to re-issue the check.
Unsure as to how to handle and what my rights are... and yes, addresses and names on checks are correct, and I have gotten other checks from both insurance companies without an issue.
Any input/suggestions?
Thanks so much!

[Michele]

Well, if they mailed the check to the right address, and had it made out to the right provider, then they really didn't do anything wrong.  It's really more of either a USPS issue (if they delivered it to the wrong address), or a criminal issue (if someone stole it from your mailbox and cashed it).  You said they were cashed by another provider.  Did that provider receive them directly at their office?  Were the checks "stuck" together (I've seen that where a check gets stuck to the check in front of it and mailed to the wrong provider)?  Are the names similar and the provider didn't notice and just deposited it?  If so, then the signature on the back should be the wrong provider, and the bank should be able to correct the issue. 

Really you need to determine if this was intentional, or just an error.  Unfortunately it is a pain, but if nothing negligent was done by the insurance carrier you will have to do a little let work.

We had a situation once where they paid the wrong provider.  Provider had a similar name, but was in a different state.  Human error, selected the wrong provider and sent payment.  Insurance carrier is totally at fault.  They wanted us to wait for that provider to refund the money before they would reissue.  No.  Unacceptable.  You made the error, send us the money now, and go after your money yourself. 

But if the insurance company mailed it to your provider at your address, and no error was made, it's a bit more involved.   

[dekenn]

Thanks for the reply, Michelle!
In one instance, the check was not endorsed at all, in the other instance, it was endorsed by someone with totally different name. I do think the checks were either misdirected by the USPS, or "stuck" to another check, my issue is having to find it and track down the money myself.
If I were to give a personal check to someone, and it was misdirected and cashed by someone else, I would be responsible for tracking down the check and recouping the monies. Wouldn't that be the same issue with the insurance company?
If I took the copies of the checks to the bank and showed them that the endorser is not the payee, would they investigate on my part? I'm thinking there are privacy issues there and that I wouldn't be able to initiate an inquiry because I'm not the payor. Thoughts?

[Michele]

So the check that was not endorsed, they should be able to just re-issue.

But on the other one, that was cashed by the wrong person, the bank that cashed it should have noticed the person signing it was not authorized.  But I believe if you wrote out a personal check to someone, and a different person cashed it, it would be the responsibility of the person who the check was made out to, to press charges against the person who cashed it.  In any case, I think I would contact the insurance company and tell them that you did not receive the check, and the signature on the back is not yours, or anyone else in your office.  They should be able to advise you on what the next step is.

[dekenn]

I did that. They sent me a form that I have to fill out, I have to get it notarized, and I have to send it FedEx to them. This seems like a bit much, especially when they can look at the back of the check and know that it was not our office.
That's why I was asking how other people handled it.

[Michele]

Fortunately this is not something that happens often. 

Unfortunately the only way to fix it is to complete the form.