If our insurance company issued a check to us in the amount of $757 by mistake when we bought a new car, are we liable to pay it back?

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If our insurance company issued a check to us in the amount of $757 by mistake when we bought a new car, are we liable to pay it back?

Though we didn’t expect it we thought it was rightfully ours based on the circumstances of the loans. The insurance company admits this was an accounting error and wants us to pay the money back.

Asked on October 22, 2012 under Insurance Law, North Dakota

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your insurance carrier in error overpaid you $757.00 with respect to the car that you bought you are obligated under the laws of all states in this country to reimburse the insurance carrier for the overpayment. Should you fail to do so, most likely you will be involved in a small claims action.


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