Do not make a vendor credit At All.
Make the deposit, with no name, and post as “from” Insurance Expense.
Resolution for 'cancelled liability issue: 'How do I enter a refund from cancelled liability insurance policy?' available: Yes.
The cancelled liability issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the cancelled liability issue yourself by looking for a resolution described in the article. If it is a complex cancelled liability issue or you are unable to solve the issue, you may contact us by clicking here or by using other cancelled liability support options.
For more information about resolving issues related to cancelled liability in Quickbooks/QBO or to get support for the issue 'How do I enter a refund from cancelled liability insurance policy?', click the link below: