As beneficiary, am I responsible for making good on the life insurance company’s overpayment because of their error?

Dad was 82. Passed away. Funeral home catered his funeral to amount of life insurance he had. They filed ins. As beneficiary payment was mailed to me, check made out to me. I deposited it, wrote a check and paid funeral home. Now ins. company is calling me telling me they made an over-payment because they just discoverd he had an outstanding loan. Want to be repaid their overpayment. Am I responsible for this? Or since the funeral home has been paid will they just have to file a claim against his estate?

Asked on July 13, 2012 under Insurance Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the insurance check was paid out to you in error you are legally responsible for making up the deficiency concerning the payment.

Since you used personal funds for your father's funeral, his estate in the end is responsible for reimbursing the money that you are ultimately out of pocket with respect to clearing up the over payment issue with the insurance company on the life insurance policy that you father had on his life.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.