Legal Question in Insurance Law in Oklahoma
Who gets the money when Insurance pays off?
My husband was in an auto accident a week ago. I dealt with the insurance company of the guilty party and our insurance as well. The Adjustor and I settled on a settlement amount for the vehicle (it was totaled). After he mailed the check (in my name, b/c insurance was in my name) I found out that husband had it on a loan note at the bank. Settlement was $4800, bank wants $4375. We need to replace the vehicle. My name is NOT on the loan at the bank. Who has the right to the money? Me since the check was in my name, or the bank? Can we purchased a vehicle with the money and give the extra to the bank? They say no, but they don't know the check is in my name.
1 Answer from Attorneys
Re: Who gets the money when Insurance pays off?
It is very difficult for me to understand how the bank found out about the insurance check. Must be a small town. Anyway, assuming that we are dealing with an Oklahoma loan at an Oklahoma bank, I do not think the bank has any interest in the proceeds of the insurance check since they could not have obtained any protected interest in the car without you as the owner signing a security agreement. A security interest taken in a car is usually perfected by the filing of a lien statement with the tag agency which enters the lien on the title. If your husband did not have his name on the title, he could not have given the bank a security interest. If he signed your name without your knowledge or consent, he may have some legal problems to deal with.
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