1. Alice has something valuable stolen (goods or photos or whatever, doesn't matter)
2. Bob innocently buys Alice's stuff from Criminal Craig
3. Alice gets insurance money
4. Everything gets found out and Craig goes to jail
5. Alice gets her stuff back, but has to make Bob whole out of the insurance money (and maybe pay back the difference to the insurance company?)
6. At this point, it is then on the insurance company to try to recover whatever it can from Craig
That's how I would set it up if I were king anyway.
1. Alice has something valuable stolen (goods or photos or whatever, doesn't matter)
2. Bob innocently buys Alice's stuff from Criminal Craig
3. Alice gets insurance money
4. Everything gets found out and Craig goes to jail
5. Alice gets her stuff back, but has to make Bob whole out of the insurance money (and maybe pay back the difference to the insurance company?)
6. At this point, it is then on the insurance company to try to recover whatever it can from Craig
That's how I would set it up if I were king anyway.