Under what circumstances do you pay back the insurance company?

Question

If you were on a plane that went down or on a ship that sank....you ended up being on a stranded island. You are pronounced dead by your family and the state yada-yada. They get the insurance money and say like 10 years later someone finds you. Do you have to pay the insurance company the money back?

Answer 1

YOU wouldn't HAVE the insurance money, the beneficiary would

If you're declared legally dead, which, btw, usually takes a minimum of 7 years missing, then I don't believe the beneficiary would have to pay the money back.  But it could vary by state law.

That kinda stuff pretty much only happens in the movies.   Except in cases of fraud, where the insured/policy owner would then go to jail, for fraud.

Answer 2

Yes.  And, another circumstance would be if you became ill from using a product, sued the company, you won a settlement and the insurance already paid for the hospital and doctors, you have to pay them back in that instance too.