Insurance Asking for Repayment After A SettlementJune 12, 2017
So, you brought a lawsuit or you made a claim, and you were successful in getting a recovery against the at-fault party’s insurance company. Now your own insurance company is contacting you and asking that they be repaid. Are they allowed to do this? Well, the simple answer is, “Yes”. Most insurance policies have what’s called a reimbursement provision that requires you to pay back any benefits you were paid that you recovered from the other driver’s insurance policy or other sources.
Now, some of these reimbursement clauses are more friendly to the injured party than others. For example, most medical payment reimbursement clauses through automobile policies allow you to take a credit or reduction in the amount you pay back to compensate you for your attorney’s fees and the costs you’ve incurred in pursuing a claim against the responsible party. Other insurance companies, such as many health insurance companies, don’t care how much money, time, or cost you’ve expended in getting a recovery. They want a dollar-for-dollar reimbursement.