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From a purely legal perspective, there is no obligation on the claimant's part. Since the person did not have an illegal intent when the claim was made or paid, the claimant has not broken any laws.
However, the claimant should carefully read their insurance policy, because it likely addresses this sort of situation.
While there isn't a legal obligation, there may be one created by contract.
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In fact, I'd be very surprised if the policy did not address this kind of situation.
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