Why did my Health Insurance Send Me a Check | 11 Reasons

Why did my health insurance send me a check? Some insurance companies will pay the customer directly when the provider is not part of their network. You can use the check for a variety of purposes. Using a bank account or a credit or debit card, you can deposit and pay for it. You may receive a check from your health insurance provider for various reasons.

Perhaps the insurance company made a mistake and is currently correcting it. Another possibility is that they need, by law, to return some of the premium after a successful claim.

You can use our online portal or mail a check to our office to make a payment. As soon as you receive an EOB, please send it to us so we can appropriately credit your account.

Payers are increasingly resorting to this practice. They claim to adhere to a law prohibiting them from directly paying the service provider.

They’d take it if you made it out to them, and you’d get paid faster because they’re aware of the issue. Let’s find out some reasons why you can receive an insurance check without notice:

Why did my Health Insurance Send Me a Check?

Why did my Health Insurance Send Me a Check

Here are the reasons why health insurance sends you a check;

  • The policy covers your losses.
  • The policy is void.
  • You had no liability.
  • There was no damage to the vehicle.
  • It’s a use it or loses it policy.
  • The insurance company paid out on another claim first.
  • A small limit settled the claim, and collision coverage was included.
  • The policy has expired.
  • They found some other coverage.
  • They found no fault on the part of the vehicle owner.
  • They made a mistake and sent you too much money.
Why did my Health Insurance Send Me a Check

The policy covers your losses.

As a customer, you don’t need to interact with an insurance appraiser directly. Because appraisers may attempt to underpay you, it is frequently safer to have a lawyer represent you in all talks and contacts with the insurance company.

If they gave a verdict, the insurance company would pay the claimant’s losses according to the terms of their policy. Before accepting a settlement, you must be confident that the money you receive is sufficient to compensate for your losses. Even if you got a $15,000 payment for property damage and later realized that your contractor has to make more repairs, it may be challenging to secure additional monies despite receiving a check from the insurance company.

The policy is void.

A policyholder must receive written notice of cancellation at least 30 days before the cancellation of an insurance policy.

The insurer must provide a reason and the date and method of cancellation when they canceled the policy. There are ways to contact and negotiate with your insurance carrier if you risk losing coverage, even if you do not wish to.

A provider of insurance has the authority to cancel your coverage if you fail to meet your contractual obligations. Every state has an insurance commission or division charged with protecting policyholders and promoting a competitive insurance market. A state insurance regulator assesses insurance companies’ financial soundness and solvency, in addition to their ability to pay claims by check.

You had no liability.

In this case, you need Liability insurance if the insured party is liable and at fault for injuries to others or damage to another’s property. To avoid confusion, liability insurance is “third-party insurance.” 

Even if the insured is held legally liable, intentional or illegal activity is not covered by liability insurance. Everyone you could sue for damages or injuries, such as business owners, drivers, physicians, and lawyers, should have insurance. Additionally, the insurance protects third persons who may suffer injuries due to the policyholder’s accidental negligence.

In most states, for instance, automobile owners must get liability insurance as part of their auto insurance coverage to pay for damages to other people and their property in the event of an accident. Product liability insurance protects a producer if one of their products causes injury to consumers or third parties due to a flaw.

In some instances, it is prudent to purchase additional insurance than is necessary by law. Keep in mind that the costs of automobiles and healthcare are increasing. A policy that meets only the state’s minimum criteria may not cover even minor accidents.

They may file a civil lawsuit against you if your motor liability insurance does not cover the total amount of the damages.

There was no damage to the vehicle.

You are maybe out of automobile collisions, so receiving a check in the mail may leave you unsure of what to do with it. Most people would wish to make a cash deposit, but does this check have any restrictions?

Insurance companies frequently send forward settlement payment suggestions. You are justified in your skepticism, even if it is unjustified.

Consequently, you may be eligible for compensation for only a portion of your damages and costs. What you do with that money is vitally important. The insurance company will save money by not having to pay claims in the future if you cash in your policy.

It’s a use it or loses it policy.

In general, you are eligible for benefits if you cannot perform a certain number of so-called activities of daily living, such as bathing, dressing, and eating. Typically, premiums are waived at this point if a person is receiving benefits.

Generally speaking, if you fail to pay your insurance premiums before you need them, you will be out of luck. Even if you never use the coverage, the insurance company will still profit because they invest your money to pay for other people’s claims. That’s why you may receive a check.

The insurance company paid out on another claim first.

You may need Medicare to pay secondary to other insurers and group health plans. The initial step in preventing errors and problems with your health insurance plans is to pay claims accurately the first time.

Insurance covers everything from death benefits to routine and comprehensive medical exams. On occasion, a third party may manage the claim of an insured. In most instances, the insurance company’s payments can only be by the named policyholder (s).

After an insurance company verifies that you file a claim and that they approve the claimant, the interested party may receive compensation for their losses. 

Your future premiums may increase if you file a claim for property-casualty insurance, such as auto or homeowner’s insurance.

A small limit settled the claim, and collision coverage was included.

If your auto insurance policy includes collision coverage, you may be able to have your vehicle repaired or replaced, even if you caused the accident.

There are two significant advantages to using your collision coverage instead of a third-party claim.

Almost certainly, a check from your own insurance company will arrive sooner. The insurance company pays out regardless of who caused the accident. However, the insurance company will cover any third-party claims if the insured party is guilty of the accident. 

Studies require time to complete. You may need to await a police report or an insurance adjuster’s contact with a witness before you can establish the other driver’s negligence. When determining who is at fault in an accident, the other insurance company may wait to see if you are willing to negotiate a settlement.

If you have a third-party personal injury claim, you should also refrain from contacting the other driver’s insurance company until your investigation is complete. Until you are sure of the facts and your arguments, it is risky to discuss the accident’s specifics with anyone on the “opposing side.”

The policy has expired.

The majority of insurance checks contain a notice of waiver. Waiver language stipulates that the recipient waives all rights to future litigation or compensation by cashing this check. So, they send a check.

On the other hand, insurance companies will do whatever they can to pay you the least amount possible. There is a good chance you are receiving only a portion of what you are entitled to. However, if you sign the check and cash it, you will only receive the amount you signed, regardless of how much you were owed.

They found some other coverage.

Depending on the terms and limits of your policy, you may receive a check for a certain amount of money for repairs. All this after an adjuster inspects your home. There are various reasons why your insurance company may not send you the total settlement amount with the initial check.

Most insurance companies require you to purchase replacements for damaged items to receive full reimbursement. If you can provide copies of your purchase receipts as proof, you will receive compensation for the difference between the item’s original cash value and its total replacement cost. Discuss this with your agent. 

In the event of a total loss in which the home and its contents are destroyed, insurers are mandated by state law to pay out the total amount of the policy. Therefore, if your home and its contents were insured, you can receive a check for the insured amount.

They found no fault on the part of the vehicle owner.

If you are determined to be at fault for an accident, your insurance premiums may increase, and your driving record may be damaged. You may sometimes face criminal charges (for example, driving recklessly or under alcohol).

When you meet with an insurance adjuster following an accident, the question of liability will almost be there. In the absence of a settlement in a car accident case, the question of liability will be there.

If you submit a claim, the insurance company will likely contact you if any missing records or if additional information is necessary to investigate the accident and evaluate your claim. However, if it appears that your claim starts slowly; do not hesitate to contact your insurer. Ensure that your agent sends new records and data as soon as they become available.

They made a mistake and sent you too much money.

When a company pays an office too much for its services, overpayments occur. The insurance company typically makes the overpayment, but the patient can also do so. If they do an overpayment, you must return it as soon as possible to the original payer.

The patient must receive a message when an overpayment appears. Although the provider has some options for handling overpayments, they cannot keep the money forever.

Payment must be reprocessed to reflect the correct amount, and the provider must refund any overpayment. Sometimes, the payer will call the provider and request that the overpayment is reversed. 

Last Words

The majority of individuals associate insurance fraud with policyholders defrauding their insurers. However, some insurance companies commit fraud. When dishonest insurance companies or agents collect payments for phony policies they have no intention or capacity to fulfill, policyholders may become victims of fraud.

Several red flags suggest that an insurance purchaser deals with an untrustworthy agent or company.

Providers offering policies at a substantial discount (up to 20 percent) compared to the competition. Everyone should look for insurance scams, as insurance companies and policyholders commit fraud.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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