if the insurance company paid

by veraclark55 » Fri Jun 03, 2011 02:28 pm

if the insurance company paid one person the amount the other beneficiary should have gotten does it have to be paid back to the insurance company?

Total Comments: 4

Posted: Sat Jun 04, 2011 06:26 am Post Subject:

Ideally it should be repaid to the insurance company. If it's not your money then you have no right to keep it. You may consult with your agent, call the CSR and go through the paper works to know the process of repayment.

Posted: Tue Jun 07, 2011 10:48 am Post Subject: Responsibility of the insurance company

The insurance company has to be sure that the settlement money is going to the right person. It is not at all your fault if they have paid you by mistake (someone else's claim). But to make things work properly, you should inform the insurance company and give them back the claim amount which you have received. If you don't do so, the insurer might sue you in the long run when the other beneficiary forwards his claim again.

Posted: Tue Jun 07, 2011 10:56 pm Post Subject:

There is nothing here to indicate that a beneficiary was paid "by mistake". This could easily be a situation in which a person thought they were a beneficiary, but learned later that the money was paid to another beneficiary, and that person is the sole beneficiary. If that's the case, then the unnamed beneficiary has no standing to challenge the claims payment.

Unless the company made a genuine mistake in paying money to a beneficiary, there is still no claim against the insurance company, but one may be made against the person who received the money from the insurance company.

Once the money has been paid, if all the money was paid to one beneficiary instead of two or more (legitimate) beneficiaries, if the person who received the money does not voluntarily send the entire amount back to the insurance company for redistribution, the insurance company may not want to be a party to anything, leaving the other beneficiaries to make separate claims against the person who received the money.

Posted: Fri Jun 10, 2011 06:10 am Post Subject:

So, you see if you're really a legitimate beneficiary then you have to make a separate claim. You may wish to consult an attorney in this regard, but before that you have to be sure that the other person (who received the money) is not the sole beneficiary.

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