Is 1099-G considered income if insurance co. made direct payments to loan co. and monies never came to me?

[marinesaregreat]

Paid for involuntary unemployment insurance on my loan. I utilized the benefit during my unemployment period. Insurance co. for the loan sent 1099-G. Were the payments considered income although the payments were made directly to the loan company and not me?

[NCperson]

since you paid for the insurance with after tax monies, the payout is not taxable (and that is still true if the payments were sent directly to you). 

no different than an insurance claim on your car.... the payment goes to the body shop and you are not taxed on that money. 

[marinesaregreat]

Would the payments on the 1099-G be considered income? Should it reduce my refund?