May 202015
 

 

By Naomi Hatch

The Town of Snowflake received a windfall a decade ago in the form of payment of life insurance proceeds from a former employee, but the insurer now says that was an error and repayment is sought.

In 2005, the town received a $73,446.60 payment from First Colony Life Insurance.

Town Manager Brian Richards noted May 12 that the insurance company is the risk pool insurance. The money was sent to the town, deposited in the account, and a couple of months ago, 10 years after receiving the money, Arizona Support Risk Pool officials said that they discovered that the town should not have been named beneficiary and asked that the money be repaid.

Town Attorney Robert Hall asked Richards to get more information, such as data proof that led the risk pool to believe there has been a mistake, so that he and Richards could review it.

“Someone 10 years ago thought that beneficiary was us. I would like to see why they thought that,” said Hall. He noted that Mayor Tom Poscharsky is also an attorney, and that he could handle the situation if it gets to that point. “I don’t think it will get to that, but I do think we need to look at that audit,” said Hall.

“The real issue is, do we have a legal obligation to pay it back,” said the mayor, who was present telephonically.

Hall suggested the council table this item until they can look at the documents to determine why the decision was made to give the money to Snowflake and why the decision was made to request repayment.

A motion to table the item passed unanimously and staff was asked to research the matter.