I can see where it is an issue of, reading up on the policy beforehand and understanding it. But if she had to pay it back.. that sounds more like a loan, than insurance. Wow I am glad that my company has a great insurance policy! I read the thing with its fine print.. I think that everyone should do this.
And lawyers.. will be lawyers. Not to offend anyone here who is one or knows one. But they don't always work for the greater good; they are often in it for the $$.