If I received a life insurance annuity payout by mistake, what are the legal ramifications if I don’t pay it back?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I received a life insurance annuity payout by mistake, what are the legal ramifications if I don’t pay it back?

Recently I had a loved one pass away. I received a life insurance annuity payout, and then received a letter 2 weeks later stating that this payout was a mistake. I was asked to return it. What are the legal ramifications if I don’t as this is the insurance company’s mistake. Also, I am not sure if this in fact was a mistake, and I have no of knowing since I lived in a different state than my mom.

Asked on June 28, 2015 under Insurance Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

IF it was a mistake, then if you don't repay it, they can sue you to get the money, and possibly their costs of suit (e.g. legal fees)--the fact that someone makes a mistake does NOT give you right to keep their money. (Consider: say that you had the plumber come, paid him $200 on the spot, then forgot you'd paid him and sent a second check for $200. Do you think he could keep your extra $200, or would you expect it back? You'd expect it back, and you'd be legally entitled to it.)

Whether it is or is it  a mistake is a different issue: you can and should ask them to document/support that it was a mistake. But if it was, you must return it.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption