Legal Question in Consumer Law in Pennsylvania

Re: Theft of jewelry

Insurance companies rarely pay claims where the insured has already been compensated. Odds are, your claim form (or policy) asked if you knew of any other sources of compensation for your loss and also said you had a continuing duty to update your claim form as you became aware of new information.

As such, the insurance check was likely contingent upon you not having any other source of compensation, and so there's no "legal reason" to keep it.

In general, it's always good to keep your insurance company informed of anything that has happened related to your claim. While you don't always have to tell them everything, the line between what you can and can't tell is very blurry, and the consequences of getting it wrong can often be very harsh, including criminal insurance fraud charges.