Page 745

West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 19 Chapter 5 Assets

5.3.6 COMPENSATION FOR LOSS OR DAMAGE Settlements for lost or damaged assets or insurance proceeds earmarked for medical expenses, burial costs, replacement, or repair of assets are excluded, provided the client use the money, as intended, in a reasonable period of time. Reasonable is defined as being used in the month of receipt or the month following receipt.

Example 1: Ms. Basil receives an insurance settlement of $8,000 as a result of an automobile accident. Of the payment amount, $1,250 is used for medical expenses and $6,000 is used to replace the vehicle destroyed in the accident. Because the insurance settlement has been used as intended, for replacement of the lost asset and reimbursement of medical expenses, only $750 remains as a lump-sum payment. Example 2: A payment of $30,000 from a utility company, due to the loss of Mr. Rose’s home through the company's negligence, includes $28,000 for the home and household goods and $2,000 for personal injury. In this case, only the $28,000 can be subject to this exclusion. The $2,000 for personal injury is treated as a lump sum. EXCEPTION: For SNAP: Any governmental payments that are designated for the restoration of a home damaged in a disaster are excluded, as long as the AG is subject to a legal sanction if the funds are not used as intended.

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Page 745

Official source

West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 19 Chapter 5 Assets

5.3.6 COMPENSATION FOR LOSS OR DAMAGE Settlements for lost or damaged assets or insurance proceeds earmarked for medical expenses, burial costs, replacement, or repair of assets are excluded, provided the client use the money, as intended, in a reasonable period of time. Reasonable is defined as being used in the month of receipt or the month following receipt.

Example 1: Ms. Basil receives an insurance settlement of $8,000 as a result of an automobile accident. Of the payment amount, $1,250 is used for medical expenses and $6,000 is used to replace the vehicle destroyed in the accident. Because the insurance settlement has been used as intended, for replacement of the lost asset and reimbursement of medical expenses, only $750 remains as a lump-sum payment. Example 2: A payment of $30,000 from a utility company, due to the loss of Mr. Rose’s home through the company's negligence, includes $28,000 for the home and household goods and $2,000 for personal injury. In this case, only the $28,000 can be subject to this exclusion. The $2,000 for personal injury is treated as a lump sum. EXCEPTION: For SNAP: Any governmental payments that are designated for the restoration of a home damaged in a disaster are excluded, as long as the AG is subject to a legal sanction if the funds are not used as intended.