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NO, They are not liable if their insured was not At Fault or was not their insured regardless of whether a check had already been written or not. In fact should they have issued a settlement check and later determined they were not liable, The insurer can demand a refund of the settlement amount they issued.

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Q: If an insurance company made a settlement offer and a check was to be written when they realized they were not the at-fault's insurer at the time of the accident are they still liable?
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