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Can an insurer force an insured to press charges against someone for theft if that person has agreed to make restitution?

Question Details:

I am on staff at a local church. We have a member that stole some stuff from our church. We don't want to press charges because he is only 19 and he has never done anything like this before and he is obviously sorry for what he did. Our insurance company cut us a check and we replaced the items before he admitted to it. Our insurance company is now telling us that we must press criminal charges against this boy or we will be forced to pay back the money. The boy is willing to make an agreement with the insurance company for restitution. Is this legal for the insurance company to do? Can they force us to press charges? Isn't it our decision? The boy already made a recorded statement at the local police station. I don't see why we should be forced to do this.

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