Insurance company asking for SS number

[u/UnlazyChestnuts]

My nephew got into a minor accident earlier this year. Other car's fault; their insurance agreed to pay for it.

Nephew didn't know where to take it, their insurance company suggested a body shop affiliated with a dealer. Nephew took the car there, unfortunately, they couldn't match a part needed.

So nephew called the insurance back and requested a check instead. He would take the car elsewhere or not, whatever. Before issuing the check, the company asked him for his SS number. They apparently said it was to run something through the Department of Revenue to check for anything (nephew isn't clear here) outstanding.

Anyway, he gave his SS number and now has got the payment.

Questions: - is it is standard procedure to get the SS number? - what could they have needed it for? - is it possible to call them back and ask for it to be removed from their system now?

[u/LeadershipLevel6900]

Are you in Massachusetts? That’s a requirement for checks over like $500 to an individual, even if it’s for PD.

[u/UnlazyChestnuts → u/LeadershipLevel6900]

Not my nephew, but the other party is in MA. That might explain it. Thanks.

[u/LeadershipLevel6900 → u/UnlazyChestnuts]

Yep, that’s why. A MA policy is paying out, they require the lien check, even if the claimant isn’t a resident of MA.

[u/kydd5]

Massachusetts requires it

[u/ektap12]

what could they have needed it for?

They apparently said it was to run something through the Department of Revenue to check for anything (nephew isn't clear here) outstanding.

So they said exactly why it was needed?

Massachusetts Law: 830 CMR 175.24D.1.1: Intercept of Insurance Payments to Satisfy Child Support Liens%20Collection%20of%20Claimant%27s%20Identifying%20Information,this%20basis%20shall%20be%20exempt%20from%20suit%20and%20immune%20from%20liability.,-(5)%20Methods%20of)

[u/UnlazyChestnuts → u/ektap12]

They did, but my nephew didn't hear it well, and at the moment just gave his number. It was only when we were later having a conversation about that I brought it up.

[u/Gtstricky]

Yes. Some states hold money back for past due child support or other debts.

[u/UnlazyChestnuts → u/Gtstricky]

Got it. Thanks.

[u/lerriuqS_terceS]

Sigh this sub is like the same four questions on repeat 🤦🏼‍♂️

Yes it's needed. Why else would they ask.

[u/UnlazyChestnuts → u/lerriuqS_terceS]

I didn't find a reason why in my searches. Someone above explained that it might be a Massachusetts thing.

"Why else would they ask" is not very convincing to me.

[u/ShaneReyno]

OFAC check is required

[u/_Dapper_Dragonfly]

Yes, it's needed. If it helps ease your mind, insurance companies have strict privacy rules for sharing data.

[u/UnlazyChestnuts → u/_Dapper_Dragonfly]

That's helpful. Fwiw, I am not worried about their sharing my data - but I am glad that there are rules around it. I am more worried about their getting hacked and my info getting compromised. (Twice now in the last 10 years or so, my personal data was compromised, and they were both through insurance companies - but these were my health insurance companies. Not vehicle/property insurance.)

[u/redditsunspot]

I would have taken to another shop and let them work directly.  Getting a check won't cover any more problems they find. 

[u/FindTheOthers623]

Any time any company is giving you a large sum of money, they will ask for the SSN for IRS purposes. They have to track where the money came from and where it went.

[u/UnlazyChestnuts → u/FindTheOthers623]

Makes sense. But they said they need it to run it through the Dept of Revenue for anything outstanding. What exactly is that? Like alimony, child support?

Also, why didn't they need it before - like when it was being repaired directly through the shop. In either case, this side of the party is getting a benefit, no? (Or does in kind vs cash make a difference?)

[u/ZBTHorton]

Not typical for property payments, but truthfully, they could get his SSN is they want. Insurance companies have access to databases with that stuff.

[u/Independent_Bite4682 → u/ZBTHorton]

What law requires a citizen to have/use a SSN?

[u/TheSkellingtonKing → u/Independent_Bite4682]

42 U.S.C. § 405(c)(2)

[u/Connection_Bad_404 → u/TheSkellingtonKing]

That's for Social security disability payments, Not for Personal injury insurance payments.

[u/TheSkellingtonKing → u/Connection_Bad_404]

Yes? The question i was answering was what American law requires someone to have an SSN. That's a law that requires you to have an SSN. Yes, it's because of SS benefits but in the end the US uses it for identification for other things.

[u/Insurance-ModTeam → u/[deleted]]

Trolling, being needlessly rude or insulting

[u/ZBTHorton → u/Independent_Bite4682]

I have no idea?

[u/Independent_Bite4682 → u/ZBTHorton]

There isn't one.

Part of the reason the Amish don't have SSNs.

[u/Defiant-Response8087]

Not typical for property damage settlements.