Interpleader Lawyer

Interpleader Lawyer Alaska

Our Alaska interpleader lawyers handle all life insurance interpleader cases and beneficiary disputes.

A life insurance interpleader case is a legal action that occurs when there are conflicting claims to the proceeds of a life insurance policy. The insurance company files an interpleader complaint with the court and deposits the policy proceeds with the court, asking the court to decide who is entitled to receive the money. The insurance company then names all the potential beneficiaries as defendants in the suit and is usually discharged from further liability.

Life insurance claims are denied frequently in Alaska, and here are some reasons for a denial:

  1. Death During the Grace Period: If the policyholder dies during the grace period (a short period after a missed premium payment when coverage is still in effect), the insurance company may deny the claim if the premium remains unpaid.
  2. Non-Disclosure of Risky Hobbies or Occupations: Failure to disclose high-risk hobbies or occupations that could significantly impact the risk profile may lead to a claim denial. For example, if the policyholder participated in extreme sports but did not disclose this information, and they died while engaged in such activities, the claim could be denied.
  3. Policy Expiration: If the policy has reached its maturity date or the end of the policy term, and the policyholder dies afterward, the claim may be denied because the coverage period has ended.
  4. Failure to Update Beneficiary Designation: If the beneficiary designation in the policy is outdated or incorrect, and the policyholder did not update it before their death, this could result in a claim dispute or denial.
  5. Fraud or Foul Play: If there is evidence of fraud or foul play related to the policyholder’s death, such as murder or suicide staged to appear as an accident, the insurance company may deny the claim pending a thorough investigation.
  6. Policy Loans or Cash Value Depletion: Some whole life insurance policies allow policyholders to take out loans against the policy’s cash value. If the policy’s cash value has been depleted due to loans or other withdrawals, it could affect the claim amount or lead to a claim denial.
  7. Death Outside of Policy Coverage Area: Some policies have geographic restrictions, and if the policyholder dies outside the specified coverage area, the claim may be denied unless the policy provides for exceptions or travel coverage.
  8. Non-Payment of Premiums During the Waiting Period: In policies with a waiting period before coverage begins, if the policyholder dies during this period without making the required premium payments, the claim may be denied.
  9. Incorrect Policy Type: If the policyholder had purchased a type of life insurance that does not cover their specific cause of death, the claim could be denied. For instance, if they had a term life policy and died due to an illness, the claim would not be paid out as term life insurance typically covers death due to accidents and natural causes.
  10. Misrepresentation of Smoking Status: If a policyholder misrepresents their smoking status and dies from smoking-related health issues, the claim may be denied, or the payout may be reduced if smoking is considered a material factor in the death.


Alaska Life Insurance Interpleader Cases

Here’s a hypothetical example of a life insurance interpleader action arising from the removal of an ex-spouse as a beneficiary:

Scenario: John and Mary were married, and during their marriage, John took out a life insurance policy with Mary as the primary beneficiary. However, they later divorced, and the divorce decree specified that John would remove Mary as the beneficiary of his life insurance policy. John complied with the divorce decree by notifying his insurance company to remove Mary as the beneficiary, but there was some confusion or oversight during the process. Unfortunately, John passed away shortly after the divorce was finalized. His insurance policy still listed Mary as the beneficiary due to an administrative error on the part of the insurance company. Mary, unaware of the removal order in the divorce decree, submitted a claim to the insurance company for the death benefit. At the same time, John’s estate executor, Jane, who was aware of the divorce decree’s instructions to remove Mary as the beneficiary, also filed a claim for the death benefit, arguing that the policy’s beneficiary designation should have been updated to reflect the divorce decree.

In this scenario, there is a dispute over who should receive the life insurance death benefit:

  1. Mary: Mary believes she is the rightful beneficiary because she is named as such in the policy, and she is unaware of any changes ordered by the divorce decree.
  2. Jane (John’s estate executor): Jane asserts that the divorce decree legally removed Mary as the beneficiary, and the insurance company failed to update the policy accordingly. She believes that the death benefit should go to John’s estate or to the new beneficiary specified in the divorce decree.

To resolve this dispute and avoid potential legal liability, the insurance company decides to initiate a life insurance interpleader action:

  1. Interpleader Petition: The insurance company files an interpleader petition with the court, stating that it is unsure of the rightful beneficiary and is willing to deposit the full death benefit amount with the court for the court to decide.
  2. Deposition of Funds: The insurance company deposits the death benefit amount with the court, effectively removing itself from the dispute.
  3. Court Decision: The court reviews the divorce decree, beneficiary designation form, and any other relevant documents. After considering the evidence, the court determines whether Mary should still be considered the beneficiary or whether the divorce decree’s removal of Mary was valid. The court then orders the distribution of the death benefit accordingly.

In this hypothetical scenario, the life insurance interpleader action allows the court to resolve the dispute between Mary and Jane and ensure that the death benefit is distributed to the rightful beneficiary, as determined by the court’s judgment.

How an Alaska Interpleader Lawsuit Works

An Alaska Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as American General Life, Banner Life or Americo Life. Unfortunately, he passed away unexpectedly. The life insurance policy listed two potential beneficiaries: his sister, Lisa, and his business partner, Alex.

Beneficiary Dispute:

Both Lisa and Alex claimed to be the rightful beneficiary of the life insurance proceeds. Lisa argued that Mr. Anderson had verbally expressed his intention to make her the sole beneficiary, while Alex insisted that they had a written agreement that entitled him to the proceeds as a key person in the business.

Interpleader Claim Initiation:

In light of the conflicting claims, Life Insurance Company decided to file a life insurance interpleader claim in the appropriate court. They deposited the policy proceeds with the court and submitted the necessary documentation, naming Lisa and Alex as defendants in the interpleader action.

Court Proceedings:

The court would then summon Lisa and Alex to present their cases. Lisa would have the opportunity to provide any evidence supporting her claim, such as witness statements or any documentation suggesting Mr. Anderson’s verbal intent. On the other hand, Alex would present the written agreement and argue that it supersedes any verbal communication.


The court, in its role as a neutral party, would evaluate the evidence presented by both parties. The goal is to determine the rightful beneficiary of the life insurance proceeds. If the court cannot definitively decide, the funds deposited by Life Insurance Company would be distributed equitably or as determined by the court.


Life insurance interpleader claims are essential in cases of beneficiary disputes, ensuring a fair and impartial resolution while protecting the insurance company from potential legal repercussions. This hypothetical scenario illustrates the complexity and importance of such interpleader claims in navigating beneficiary conflicts.

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