Returning Items Purchased to Obtain Replacement Cost

A homeowner suffers a loss of personal belongings due to theft. A claim is filed, and an actual cash value award is made, with the difference between actual cash value (ACV) and replacement cost (RC) being withheld until the homeowner provides receipts for the new purchase of each lost item being replaced. At that point, the difference between the ACV payment and the RC is sent to the homeowner. After that, the homeowner either sells the newly purchased replacement items, or returns them for a refund, and thereby gets, in cash, the full replacement cost of all the stolen items, less the deductible.

Is this illegal under a policy that covers full replacement cost?