We used a Small Estate Affidavit to avoid probate and claim my dad’s bank acct, but the insurance co won’t honor it!

Question

The insurance sent checks to my fathers name but we can’t deposit them, as we don’t have “official” probate estate open with the court.  
We sent a demand letter to the insurance co to reissue the checks in my name, and they wrote back that it is “their policy” to only issue checks to the deceased persons name or “Estate of” the person. 
The checks are refunds of prepaid auto insurance, from my dad having paid the whole year in advance and having died before the policy was up.  The total amount is $300 and change.  
The insurance co did not ask for identification and did not challenge any details of the affidavit, they just refuse to honor it because of “their policy”. 
The same affidavit worked to collect bank funds, change vehicle title, etc 
What alternatives do we have for such a small amount? I could file in small claims but it’s such a hassle. I would prefer not to hire a lawyer as we already spent too much time and effort. But I hate that they are doing this to poor folks

James L. Arrasmith · Answer

Under California law, a Small Estate Affidavit can be used to collect certain assets of a deceased person without formal probate, but it's not universally accepted by all institutions. While it worked for the bank and vehicle title, insurance companies often have their own policies. 
 
Since the insurance company insists on issuing checks to the "Estate of" your father, one option is to open a small estate or a limited probate estate. This may seem excessive for such a small amount, but it could be necessary to comply with the insurance company's requirements. 
 
Another approach could be to escalate the matter within the insurance company, possibly by contacting a higher-level manager or the company's legal department. Sometimes, a more thorough review of your situation by someone with more authority can lead to a resolution. 
 
Filing in small claims court is also an option, although, as you mentioned, it can be time-consuming and may not be worth the effort for a small amount. However, it could be a way to apply pressure on the insurance company to reconsider their stance. 
 
Since you're looking to avoid additional legal fees, these steps might offer a balance between asserting your rights and managing the practicalities of the situation. If these approaches don't yield results, a brief consultation with a lawyer might provide more specific guidance tailored to your case.

Q: We used a Small Estate Affidavit to avoid probate and claim my dad’s bank acct, but the insurance co won’t honor it!