Fighting Life Insurance Interpleader Actions: Top Cases and How We Can Help
Life insurance interpleader actions are often filed by insurers when they face disputes between multiple claimants to a policy’s death benefit. These disputes can arise due to conflicting beneficiary designations, misunderstandings, or unclear intentions of the insured. Our experienced life insurance lawyers specialize in litigating interpleader actions and resolving these complex beneficiary disputes to ensure that the rightful beneficiaries receive the policy proceeds. Below are several notable examples of life insurance claims that resulted in interpleader actions.
1. Lincoln Memorial Life Insurance Interpleader Action
Case Details: The insured named his first wife as the beneficiary of his life insurance policy, but after divorcing her and remarrying, he failed to update the beneficiary designation before his death. The first wife and second wife both filed claims for the policy proceeds. The second wife argued that the divorce automatically revoked the first wife’s rights.
Outcome: Lincoln Memorial Life filed an interpleader action and deposited the money with the court. The court ruled that the first wife was the lawful beneficiary because the state where the policy was issued did not have an automatic revocation upon divorce law.
2. Ameriprise Life Insurance Interpleader Action
Case Details: The insured named his son as the beneficiary of his life insurance policy but later executed a will leaving all his property to his daughter. Both the son and the daughter claimed the policy proceeds, with the daughter arguing that the will superseded the beneficiary designation.
Outcome: Ameriprise filed an interpleader action and deposited the money with the court. The son was determined to be the lawful beneficiary because a will cannot change a life insurance beneficiary designation unless it complies with the policy’s requirements.
3. Capital Life Insurance Interpleader Action
Case Details: The insured named his wife as the beneficiary, but later separated from her and moved in with his girlfriend. He did not change the beneficiary designation before his death. Both the wife and the girlfriend claimed the policy proceeds, with the girlfriend alleging that a change of beneficiary form was forged in her favor.
Outcome: Capital Life filed an interpleader action and deposited the money with the court. The wife remained the lawful beneficiary, as there was no evidence of a valid change of beneficiary form.
4. Phoenix Life Insurance Interpleader Action
Case Details: The insured named his mother as the beneficiary, but later married and had a child. He failed to update the beneficiary designation before his death. The mother, widow, and child all filed claims for the policy proceeds, with the widow and child arguing that they were entitled to a share under state law.
Outcome: Phoenix Life filed an interpleader action and deposited the money with the court. The court ruled that the mother was still the lawful beneficiary because state law did not override a valid beneficiary designation unless there was clear evidence of a contrary intent by the insured.
5. Allianz Life Insurance Interpleader Action
Case Details: The insured named his brother as the beneficiary, but later became estranged from him and verbally told his sister that he wanted her to have the policy proceeds. The brother and sister both filed claims, with the sister relying on the insured’s oral statement.
Outcome: Allianz Life filed an interpleader action and deposited the money with the court. The court ruled that the brother remained the lawful beneficiary because an oral statement cannot change a life insurance beneficiary designation without written confirmation.
6. Kentucky Central Life Insurance Interpleader Action
Case Details: Similar to the Allianz Life case, the insured named his brother as the beneficiary but verbally told his sister that he wanted her to have the policy proceeds. The brother and sister both filed claims, with the sister relying on the insured’s oral statement.
Outcome: Kentucky Central Life filed an interpleader action and deposited the money with the court. As in the previous case, the brother was found to be the lawful beneficiary due to the lack of written confirmation for the oral statement.
7. Confederation Life Insurance Interpleader Action
Case Details: The insured named his wife as the beneficiary but later executed a trust that named his children as the beneficiaries of all his assets. The wife and children both claimed the policy proceeds, with the children arguing that the trust superseded the beneficiary designation.
Outcome: Confederation Life filed an interpleader action and deposited the money with the court. The court ruled that the wife was the lawful beneficiary because a trust cannot change a life insurance beneficiary designation unless it complies with the policy’s requirements.
8. Mutual Security Life Insurance Interpleader Action
Case Details: The insured named his girlfriend as the beneficiary but later married and had a child with another woman. The girlfriend, widow, and child all filed claims for the policy proceeds, with the widow and child arguing that they were entitled to a share of the policy under state law.
Outcome: Mutual Security Life filed an interpleader action and deposited the money with the court. The girlfriend was found to be the lawful beneficiary because state law did not override a valid beneficiary designation unless there was clear evidence of a contrary intent by the insured.
9. Choice Mutual Life Insurance Interpleader Action
Case Details: The insured named his mother as the beneficiary but later married and verbally told his wife that he wanted her to have the policy proceeds. Both the mother and the wife filed claims, with the wife providing evidence of attempted change-of-beneficiary forms.
Outcome: Choice Mutual Life filed an interpleader action and deposited the money with the court. The court ruled that the mother was still the lawful beneficiary, as no valid change of beneficiary form had been executed by the insured.
10. Executive Life Insurance Interpleader Action
Case Details: The insured named his father as the beneficiary, but both the insured and his father died in a car accident. It was unclear who died first, leading to a dispute between the father’s estate and the insured’s siblings over the policy proceeds.
Outcome: Executive Life filed an interpleader action and deposited the money with the court. The court ruled that the father’s estate was the lawful beneficiary due to the presumption that the father survived the insured in the accident.
How Our Life Insurance Lawyers Can Help
If you are involved in a life insurance interpleader action, our experienced life insurance lawyers can help navigate the complexities of these disputes and ensure that you receive the death benefit you are entitled to. Here’s how we can help:
Reviewing Beneficiary Designations: We will review the insured’s beneficiary designations and the legal implications of any changes or failures to update them.
Gathering Evidence: Our team will gather evidence, including witness statements, documents, and policy records, to support your claim and challenge any opposing claims.
Litigating Interpleader Actions: We will represent you in court, fighting for your right to the policy proceeds and ensuring that the insurer fulfills its obligations.
Negotiating Settlements: If appropriate, we can help negotiate a fair settlement to resolve the dispute outside of court.
Insurance Companies We’ve Helped Resolve Interpleader Actions With
Our skilled attorneys have successfully resolved interpleader cases involving major insurers, including:
Lincoln Memorial Life
Ameriprise
Capital Life
Phoenix Life
Allianz Life
Confederation Life
FAQ Section
What is an interpleader action in life insurance?
An interpleader action is filed by an insurance company when there are multiple conflicting claims for the same life insurance policy proceeds. The insurer deposits the money with the court and allows the court to decide who is the rightful beneficiary.How do I know if I am the rightful beneficiary in an interpleader action?
The court will review the policy’s beneficiary designations, any relevant changes, and the intentions of the insured to determine the rightful beneficiary.Can I challenge an interpleader action if I believe the insurer has wrongly withheld the policy proceeds?
Yes, you can challenge the interpleader action by providing evidence to show that you are the rightful beneficiary. Our attorneys can help you fight for your rights in court.What happens if the court finds that there are multiple valid beneficiaries?
If the court finds that multiple beneficiaries have valid claims, it will determine how the policy proceeds should be divided according to the insured’s intent or applicable law.
Free Consultation 800-330-2274