It is not taxable. You should keep it with your tax records in case of an inquiry. It was part of her insurance claim, so it is no different if they paid her the $9k, and she paid you each month. The 9K would not be taxable to her either as there is no income, just reimbursement based on her claim.
Because the purpose of insurance is to reimburse and ''make you whole'', you should generally only receive enough payment to bring you back to the state you were in before an incident occurred.
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