Liability settlement question

[AABI]

One of my clients was involved in an accident, completely the other drivers fault. My client was supposed to receive $1800 as settlement but the insurance company mailed him $18000.00.
I have tried to explain to him that he has to give back the difference, however are there any laws that say he has to. I’m trying to advise him so that he doesn’t get into any trouble.

 

[WolfpackAgent]

If it were me I'd call the claim handler immediately. I'd think the other company might ask for it back, and if they don't give it back then could they send it to collections? I'd be interested to see how this turns out.

 

[VolAgent]

If he hasn't cashed the check, or even if he has, he may be in for a surprise. There is no guarantee the company hasn't noticed the wrong amount and put a stop payment on the check.

I am sure legally he is not entitled to the excess money, although I can't think of why off hand. Just seems wrong and seems like something that would have been previously addressed in the law.

 

[marc82much]

Did he sign some papers agreeing to the settlement? If so, did it perchance, mention a dollar amount? If so, was it $1,800 or $18,000? Methinks if it was $1,800 he likely will have to cough it up at some point.

 

[InsCommentary]

Recovery of Money Paid Under Mistake of Fact - Wikisource, the free online library