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Insurance check misprint - overpayment

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spectergt260

Junior Member
State - Iowa
Hi.
I recently had a claim for partial theft come through and went yesterday to pick up the check. I was in a rush and didnt pay too much attention to anything and just dropped the check off with my bank for deposit. Later I found out the check had been misprinted from the stated amount of the invoice.

My question: I've heard several different things about keeping this money from insurance fraud to embezzlement. Everything I have read about it, however says that it is the obligation of the insurance company to report the mistake to me and only then do I have a legal obligation to return it. Even then, there is some statute of limitations on this matter which puts a time frame on when they can report this to me.

Anyone able to clear this up for me?
 


Zigner

Senior Member, Non-Attorney
State - Iowa
Hi.
I recently had a claim for partial theft come through and went yesterday to pick up the check. I was in a rush and didnt pay too much attention to anything and just dropped the check off with my bank for deposit. Later I found out the check had been misprinted from the stated amount of the invoice.

My question: I've heard several different things about keeping this money from insurance fraud to embezzlement. Everything I have read about it, however says that it is the obligation of the insurance company to report the mistake to me and only then do I have a legal obligation to return it. Even then, there is some statute of limitations on this matter which puts a time frame on when they can report this to me.

Anyone able to clear this up for me?
You have GOT to be joking! It's not your money.

Hey, next time you hand somebody a 10 dollar bill instead of a 1 dollar bill, don't be mad if they just keep it! :rolleyes::rolleyes:
 

milspecgirl

Senior Member
legally- you probably have papers from them with the estimate and the amount of the claim. therefore, you accepted that amount by accepting the claim. you legally have to repay what they overpaid you.
 

spectergt260

Junior Member
You got it.

Just in case you still don't understand: You have no legal right to keep money that is not yours. Even if.
actually, there is no moral right. but legally, it is a little ambiguous. The fact that you stated it as a legal right tells me you have no legal background.

the legal questions break down as such:
is there a legal obligation to repay at all?
is there a legal obligation to repay once I have been notified (that is most definitly a yes)
Is there a legal obligation to notify the party or is that their own legal responsibility?

as this is a legal board (at least as far as I understand), I would appreciate people staying on topic by posting responses dealing with the legalities of this situation rather than just taking the moral high road in some vague attempt to boost your morning by bashing a nameless and faceless noob on a website :)
 

spectergt260

Junior Member
also, i should say:
by legal, I mean there should be some legal consequence if I do not follow through be it fines or charges. If you cannot come up with any legal consequence than you are confusing legal with ethical and are not answering the question.

also, if your response says "you will probably get charged/fined/whatever" you still arent really ansewring the question
 

swalsh411

Senior Member
i was looking for legal feedback
Translation: I'm looking for somebody to tell me it's legal to do what I know is wrong.

A very common theme on this site I've noticed.

also, if your response says "you will probably get charged/fined/whatever" you still arent really ansewring the question
Because the crystal ball is broken. Nobody can tell you with absolute certainty what would happen.
 

spectergt260

Junior Member
u know what i was getting at. splitting hairs isnt very helpful either. I don't want a highschool econ teacher from VA trying to give me legal advice based on his moral thread. our legal system is designed to keep those things separate so it would be really nice if the people discussing it would do likewise
 

MikeKV

Member
One question:

1) Who signs and then deposits a check without looking at the amount? Just wondering.....

Do what ecmst12 suggests. Call your ins co. and tell them that they overpaid then follow their instructions.

Oh one more thing. If your ins co has their accounting practices in order you'll be caught eventually. Then you'll be aware of the legal procedures that you should have followed.
 
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swalsh411

Senior Member
u know what i was getting at. splitting hairs isnt very helpful either. I don't want a highschool econ teacher from VA trying to give me legal advice based on his moral thread.
If you want the advice of a paid attorney, pay one. He will tell you the same thing.

our legal system is designed to keep those things separate so it would be really nice if the people discussing it would do likewise
Not really. Usually what is morally wrong in the view of most people is also illegal.
 

JakeB

Member
My question: I've heard several different things about keeping this money from insurance fraud to embezzlement. Everything I have read about it, however says that it is the obligation of the insurance company to report the mistake to me and only then do I have a legal obligation to return it. Even then, there is some statute of limitations on this matter which puts a time frame on when they can report this to me.
It is not insurance fraud or embezzlement if you keep the money, since it was voluntarily given to you. So, there's no crime.

You have no legal obligation to inform the insurance company of the overpayment. However, you do have a legal obligation to repay the money when asked. No interest would accumulate during that period. If you refuse to repay the money when asked, then the insurance company could sue you for unjust enrichment. Assuming it wins a judgment, interest will be added.

I believe the general 2 year statute of limitations applies in this case (though I'd have to research it to be certain). If so, then after 2 years the insurance company would not be able to win an unjust enrichment lawsuit against you if you affirmatively use the statute of limitations as a defense.
 

spectergt260

Junior Member
One question:

1) Who signs and then deposits a check without looking at the amount? Just wondering.....

Do what ecmst12 suggests. Call your ins co. and tell them that they overpaid then follow their instructions.

Oh one more thing. If your ins co has their accounting practices in order you'll be caught eventually. Then you'll be aware of the legal procedures that you should have followed.
I was under the impression it was correct. I just signed the back and handed the bank teller the check and my credit card and she completed the transaction. The check came in the middle of a packet of papers so I didnt really bother looking through everything.
 
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spectergt260

Junior Member
It is not insurance fraud or embezzlement if you keep the money, since it was voluntarily given to you. So, there's no crime.

You have no legal obligation to inform the insurance company of the overpayment. However, you do have a legal obligation to repay the money when asked. No interest would accumulate during that period. If you refuse to repay the money when asked, then the insurance company could sue you for unjust enrichment. Assuming it wins a judgment, interest will be added.

I believe the general 2 year statute of limitations applies in this case (though I'd have to research it to be certain). If so, then after 2 years the insurance company would not be able to win an unjust enrichment lawsuit against you if you affirmatively use the statute of limitations as a defense.
u should have PMed this.... I feel like you may be maligned now as an accomplice to my list of crimes :eek:;)

Edit: based on my reading this is what I was thinking as well. I was just hoping to either get a knowledgable response either confirming it or not. Thank you for being helpful though. Would you mind giving either sources or credentials just so I know where the info is coming from?
 
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