Legal Question in Insurance Law in California

death benefit overpayment

I recently received a letter from an insurance company notifying me that an uncle had a life insurance policy in which I was entitled to the benefit. This was news to me. About a month later, the next letter that came gave the amount of the payment to expect within a few days, including interest. I received the checkand spent the money. I received a phone call from the insurance company a month later saying they had made a mistake in calculating the interest. Now I have a letter from them saying I must repay this money in full within 21 days. This was their mistake and I don't have the money anymore. What is my obligation? Must the money be paid back and if so, can they demand it all at once or can I make payments?


Asked on 5/03/07, 6:15 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: death benefit overpayment

You have to reimburse the company and it can demand the money all at once. If you can't make a lump sum payment, it will probably be willing to accept a series of smaller payments instead but it is not legally required to do so.

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Answered on 5/10/07, 7:07 pm


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