The obligatory references are Le Gentil (http://en.wikipedia.org/wiki/Guillaume_Le_Gentil) and the Uttar Pradesh Association of Dead People (http://en.wikipedia.org/wiki/Association_of_the_Dead)
I guess it makes sense, but weird that you need to pay a nice chunk of money for someone to determine you are indeed actually alive...
Recovery of the defrauded money (life insurance, social security benefits etc) from the family/beneficiaries is a tricky one. The law/judge would have to look into the knowledge/involvement of the family regarding the fake 'death' situation. Also any benefits they would have received from state (like child support obtained from state in lieu of a paying spouse, unemployment benefits that the spouse would have earned for the family had he been 'present' and unemployed rather than fakely dead etc) if the person were not fake dead but rather just "unemployed and/or unable-otherwise to pay child support" should not be recovered from the family.
Life insurance payments are to be considered 'windfall' and would have to be recovered from family to as much extent possible without making them any worse off than they were just before the person fake died.