Are you required to pay back a life insurance over payment/mistake?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Are you required to pay back a life insurance over payment/mistake?
I was contacted by an insurance company after my dad’s death. I filled out the forms they required and they sent me a check, 10 days later they asked for all the proceeds back because of a mistake they made and their files were not up to date. What legal options do I have?
Asked on February 9, 2012 under Insurance Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You are entitled to receive as much as the policy(ies) called for--no more and no less. So if the mistake was that your father had previously had, for example, two different life insurance policies totalling $500k (a $350k policy plus a $150k one), but had let one of them lapse so that his total coverage was $350k, then $350k is all you are entitled to, even if due to some paperwork snafu they sent you $500k. You need to look to the policies and see what was in force, for how much--that is what the insurer needs to pay you. If you were paid more than that, they can seek its return.
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 AttorneyPages.com 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.