Am I legally liable to pay back an overpayment received from an life insurance company?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I legally liable to pay back an overpayment received from an life insurance company?
My mother passed about 6 months ago.Her life insurance policy was $75,000 and was split between my 4 siblings and myself. Then, 2 months after receiving our dividends, the insurance company sent us each a letter about an overpayment they mistakenly gave us. It stated that our mother has filed for an accelerated life expectancy payment which brought the policy down to around $56,000 that should have been split to each of us. They are requesting that we each pay $3750 back to the insurance, stating that if we do not pay they will proceed with filing for lawful enrichment. Are we lawfully required to return payment on their clerical error?
Asked on September 30, 2019 under Insurance Law, Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, you are required to return the amount of the overpayment. The law does not condone "unjust enrichment" which is what this would be if you do no repay the money that you were mistakenly given. And think about it, had you been accidentally underpaid, you would expect the law to be on your side.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, you are required to return the amount of the overpayment. The law does not condone "unjust enrichment" which is what this would be if you do no repay the money that you were mistakenly given. And think about it, had you been accidentally underpaid, you would expect the law to be on your side.
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.