Auto Insurance Claims: Insurance Claim payout after sale of vehicle., insurance claim, bill of sale

Question
So the story goes like this. I had recently purchased a vehicle from craigslist and it was involved in a small accident with the previous owner. The insurance claim for the vehicle was still in process to pay out the owner, but he still sold it to me signing the title off to me and we both got a bill of sale made out stating sold in as-is condition. Right away I registered the vehicle in my name and received a clean title for it. Now the previous owner contacted me saying he needs me to sign off on the check that the insurance made out in his name, AND mine. I called his agent asking why i am on the check and he said it was because they made out the check for the claim in his name but since I am the registered owner I had to be included on the check also. Do I have to sign off on the check, even though I am getting nothing from it? and How is it going to affect my insurance claims for this vehicle in the future if any?

Answer
Hi Mario,

You can either sign off on the check or provide the adjuster with a copy of the bill of sale that shows that date of the sale. If the date of the sale is after the accident date then the prior owner can show that he was the sole owner on the date of the accident and the check should be made out only to him.

In either case this should have no  effect on your insurance because you were not the driver in the accident.

I hope this helps
Richard Hixenbaugh