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The answer is that it depends on what happened, whose fault the mistake was, and if your mother should have know that there was a mistake. Also, you would need to look at what documents were signed (as far as a release, etc.) to determine what potential course of action is available to your mother and/or the insurance company.
The documents she singed would essentially be the controlling documents. You would need to find those to determine what recourse the insurance company has.