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February 2015 Archives

Interpleader Lawsuits Over Life Insurance Benefits

After a person with a life insurance policy dies, a situation may arise where more than one party believes they are the rightful beneficiary of the life insurance benefit at issue. As a result, two or more people file a claim with the insurance company for the life insurance benefit under the same policy and an insurance company is faced with competing claims for a single life insurance benefit. The insurance company is responsible for determining the rightful beneficiary under the insurance policy, and if it pays the wrong person the life insurance benefit it could potentially have double or multiple liability under the policy. Many times when an insurance company is faced with two or more competing claims filed for the same life insurance benefit, it will begin an interpleader action, which is a lawsuit the insurance company files forcing all parties involved into court.

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