Is the Insurance Company Entitled to my State and Federal Tax Returns?
“Broad authorizations and the requests for tax returns, state and federal, can the carrier command you to respond? Yes, and yes. Unfortunately, the carrier has language in most of their policies that allows them to ask for state and federal tax returns because they want to see how much money you were earning at the onset of the claim.”
“They also want to see whether you were engaged in a couple of occupations. Let’s say you were a doctor, but your wife had a business. And you were the vice president of that corporation in addition to your hands-on duty as a doctor. The carrier wants the tax returns to be able to see what you’re engaged in and how much money you’re making.”
“Secondly, the carrier drafts an authorization broadly so they can go get your medical records. They can get financial information. And when you line out, you cross out, and you interlineate on that authorization, the carrier is going to argue you failed to cooperate.”