2-008.05A Insurance Settlements

Insurance payments for damage to personal property caused by a disaster are not treated as a lump sum. The client is allowed a reasonable period of time to repair or replace the property.

When a client is a beneficiary of life insurance, verified payment of debts or obligations of the deceased are subtracted from the settlement.

The worker documents in the case record the availability of settlement or inheritance funds to the client.

When a client receives an insurance settlement or other lump sum, the worker deducts from the lump sum any bills relating to the cause of the settlement that the client is obligated to pay.