IM-9 02/02/04 INSURANCE SETTLEMENTS RECEIVED BY A FOOD STAMP EU DUE TO THE TORNADOES IN MAY 2003

MEMORANDUM

2004 Memorandums

IM-9 02/02/04

SUBJECT:

INSURANCE SETTLEMENTS RECEIVED BY A FOOD STAMP EU DUE TO THE TORNADOES IN MAY 2003

DISCUSSION:

We have received a waiver to exclude lump sum insurance payments as a resource for 59 counties as a result of the severe storms, tornadoes, and flooding that occurred in May 2003. Exclude an insurance settlement as a resource if the insurance settlement is:

for damage incurred during the storms, tornadoes and floods that occurred in May 2003,
paid to households that lived in the 59-county disaster area when the storms hit, and
paid to households for either their primary residences or the contents of primary residences.

The insurance settlement is excluded as a resource through August 31, 2004.

Counties included in the waiver

Barry	Gasconade	Perry
Barton	Greene	Pettis
Bates	Henry	Phelps
Benton	Hickory	Platte
Bollinger	Iron	Polk
Buchanan	Jackson	Pulaski
Camden	Jasper	Ray
Cape Girardeau	Jefferson	St. Francois
Cass	Johnson	St. Louis
Cedar	Knox	St. Genevieve
Christian	Laclede	Saline
Clay	Lafayette	Scott
Clinton	Lawrence	St. Clair
Cooper	Marion	Stoddard
Crawford	McDonald	Stone
Dade	Miller	Taney
Dallas	Monroe	Vernon
Dent	Morgan	Washington
Douglas	Newton	Webster
Franklin	Osage

EUs closed or rejected due to lump sum insurance settlements

Review EUs in the Managed Reporting area to locate those rejected or closed due to resources since May 2003.

If an application was rejected or case closed when the insurance settlement was added to other resources, inform the EU by letter that they can reapply for food stamp benefits and that the lump sum insurance settlement will not be considered a resource.

If the EU responds, explain that they can:

request a new application only, or
request determination of restored benefits only, or
request determination of restored benefits and make a new application.

Request new application

If the EU wants to reapply for food stamp benefits, send the EU an application for food stamp benefits.

If the application is made, determine eligibility for the current application period. The EU may make a new application for food stamp benefits at any time and eligibility is determined excluding the insurance settlement.

If the application is made within 60 days of the letter, they may request restored benefits. Obtain verification for the months for which the EU is requesting restored benefits following the earlier rejection or closing. Complete a WIBCA budget for the months for which verification is received.

Request restored benefits only

If the EU requests only restored benefits, the request must be received within 60 days of the date of the letter to the EU. The request may be in writing, by telephone, or in person. The EU must meet all other eligibility factors for the original application. Review and verify the EU’s circumstances and determine eligibility from the original application date/close date, excluding the insurance payment as a resource. The EU may receive benefits for the remainder of the certification that was affected. If the EU was eligible, complete a WIBCA for each month and restore the benefits.

EXAMPLE: Mr. A’s food stamp case was closed in August 2003 due to excessive resources when he received his tornado insurance payment. He has requested restored benefits only. Mr. A’s certification was May 2003 – October 2003. Without making a new application, he is entitled to restored benefits for September 2003 and October 2003 only.

NECESSARY ACTION:

Review this memorandum with appropriate staff.
Exclude lump sum insurance payments as a resource in designated counties as a result of severe storms, tornadoes and flooding that occurred in May 2003.
Review EUs closed or rejected due to a waived lump sum insurance payment.

REM