410.570—Underpayments.
(a) General.
As used in this subpart, the term underpayment includes a payment in an amount less than the amount of the benefit due for such month, and nonpayment where some amount of such benefits are payable.
(b) Underpaid individual is living.
If an individual to whom an underpayment is due is living, the amount of such underpayment will be paid to such individual either in a single payment (if he is not entitled to a monthly benefit) or by increasing one or more monthly benefit payments to which such individual is or becomes entitled.
(c) Underpaid individual dies before adjustment of underpayment.
If an individual to whom an underpayment is due dies before receiving payment or negotiating a check or checks representing such payment, such underpayment will be distributed to the living person (or persons) in the highest order of priority as follows:
(i)
Living in the same household (as defined in § 410.393) with the deceased individual at the time of such individual's death, or
(ii)
In the case of a deceased miner, entitled for the month of death to widow's black lung benefits.
(2)
In the case of a deceased miner or widow, his or her child entitled to benefits as the surviving child of such miner or widow for the month in which such miner or widow died (if more than one such child, in equal shares to each such child). As used in this subparagraph, “entitled to benefits as a surviving child” refers to the benefit described in § 410.212, and not to the payment described in § 410.510(c).
(3)
In the case of a deceased miner, his parent entitled to benefits as the surviving parent of such miner for the month in which such miner died (if more than one such parent, in equal shares to each such parent).
(4)
The surviving spouse of the deceased individual who does not qualify under paragraph (c)(1) of this section.
(5)
The child or children of the deceased individual who do not qualify under paragraph (c)(2) of this section (if more than one such child, in equal shares to each such child).
(6)
The parent or parents of the deceased individual who do not qualify under paragraph (c)(3) of this section (if more than one such parent, in equal shares to each such parent).
(7)
The legal representative of the estate of the deceased individual as defined in paragraph (e) of this section.
(d) Person qualified to receive underpayment dies before receiving payment.
In the event that a person who is otherwise qualified to receive an underpayment under the provisions of paragraph (c) of this section, dies before receiving payment or before negotiating the check or checks representing such payment, his share of the underpayment will be divided among the remaining living person(s) in the same order of priority. In the event that there is (are) no other such person(s), the underpayment will be paid to the living person(s) in the next lower order of priority under paragraph (c) of this section.
(e) Definition of legal representative.
The term legal representative, for the purpose of qualifying to receive an underpayment, generally means the executor or the administrator of the estate of the deceased beneficiary. However, it may also include an individual, institution, or organization acting on behalf of an unadministered estate: Provided, The person can give the Administration good acquittance (as defined in paragraph (f) of this section). The following persons may qualify as legal representative for purposes of this section, provided they can give the Administration good acquittance:
(2)
A person resident in a foreign country who, under the laws and customs of that country, has the right to receive assets of the estate; or
(4)
A person who has the authority, under applicable law, to collect the assets of the estate of the deceased beneficiary.
(f) Definition of good acquittance.
A person is considered to give the Admini- stration good acquittance when payment to that person will release the Administration from further liability for such payment.