Insurer didn’t include both names on check Edward Dorrough asked 2 years ago
Insurer didn’t include both names on check

My insurance company sent 3 total payments that equaled the limits of liability, but my name was only on 2 of 3. For example, let’s say the limit of liability was $100,000

Check One $10,000 made out to Spouse A

Check Two – $30,000 made out to Spouse A & B

Check Three – $60,000 made out to Spouse A & B

So they paid the max of $100,000 to Spouse A, but Spouse B only got paid $90,000.

The insurance company did some quick pay PayPal thing that sent the first $10,000 to Spouse A’s own personal account, which I don’t have access to. They made sure to send paper checks made out to both of us from that point on, but I’m kind of annoyed I was shorted $10,000. I was told I just have to eat the loss since they paid the limit of liability and they suggested Spouse A move the money to our shared account. I thought it was rude they made such a suggestion about our finances given their mistake. It wasn’t even an advance we asked for or knew they were sending. I’m 100% sure if it were for dwelling coverage and the mortgage company got left off the check they wouldn’t tell the mortgage company to eat the loss. Should I push more aggressively for the $10,000?

1 Answers
Answer for Insurer didn’t include both names on check United Policyholders Staff answered 2 years ago
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Hi Edward,

Your question is difficult to answer because it does not pertain to a coverage or standard payment of a covered item. It has more to do with the insurance company’s payment method and the legal ramifications upon making a payment and not including both payees on the first payment.

Without knowing the terms of the policy, we don’t know if there is anything specific about how payments are supposed to be made or to whom. The insurer should have made payments to both spouses/a joint account if both were payees on the policy.

Once the money has been paid out, there’s not too much the insurer will do. They are not required to pay it again. You could ask for the funds to be returned and reissued, but it would seem most efficient to just move the money into a joint account.

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