Interpleader Lawyer

Interpleader Lawyer Indiana

Our Indiana 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.

Indiana life insurance claims are denied frequently.

Here are some life insurance laws in Indiana:

Indiana does not have a law that requires life insurance companies to provide a free look period, which is a time when you can cancel your policy and get a full refund. However, most companies in Indiana offer a free look period of one or two weeks. You should check your policy documents or contact your insurer to find out if you have a free look period and how to use it.
Indiana has a law that requires insurers to pay interest on death benefits if they are not paid within two months of receiving proof of death. The interest rate is the same as the legal rate of interest in Indiana, which is 8% per year.
Indiana has a law that allows beneficiaries to sue insurers for bad faith if they deny or delay a claim without a reasonable basis. Bad faith claims can result in compensatory and punitive damages, as well as attorney fees and costs. Bad faith violations can include failing to investigate a claim, failing to provide a reason for denial, or compelling the beneficiary to sue.

A life insurance interpleader is a legal procedure that occurs when there are two or more conflicting claims to the proceeds of a life insurance policy. The insurance company files a lawsuit in the court and deposits the money with the court, asking the court to decide who is the rightful beneficiary. The insurance company is not a party to the dispute, but a neutral stakeholder who wants to avoid paying the wrong person or being sued by either claimant.
In Indiana, a life insurance interpleader can be filed in either state or federal court, depending on the circumstances of the case. For example, if the policy was issued through an employer, it may be governed by a federal law called ERISA (Employee Retirement Income Security Act), which preempts state laws and requires the interpleader to be filed in federal court. If the policy was not issued through an employer, and there is no other basis for federal jurisdiction, the interpleader may be filed in state court.
The rules and procedures for interpleader actions vary depending on the court where they are filed. Generally, the insurance company will name all potential claimants as defendants and serve them with a copy of the complaint and a summons. The claimants will have a certain amount of time to file an answer or a motion to dismiss, stating their reasons why they believe they are entitled to the policy proceeds. The court may also order the parties to engage in discovery, mediation, or other forms of alternative dispute resolution to try to resolve the matter without a trial. If the parties cannot reach an agreement, the court will hold a trial and determine who is the rightful beneficiary based on the evidence and arguments presented by each side.
A life insurance interpleader can be a complex and lengthy process that involves legal issues such as contract interpretation, beneficiary designation, divorce, estate planning, fraud, waiver, estoppel, and more. If you are involved in a life insurance interpleader in Indiana, you may want to consult an attorney


Indiana Life Insurance Interpleader Cases

A Qualified Domestic Relations Order (QDRO) can be a factor in a life insurance interpleader when there are disputes or issues related to the distribution of life insurance proceeds in the context of a divorce or separation. A QDRO is a legal order issued by a court that divides and assigns a portion of a retirement or pension plan to a former spouse or dependent as part of a divorce settlement. While QDROs primarily address retirement accounts, they can indirectly impact life insurance policies in several ways:

  1. Beneficiary Designations: Life insurance policies typically allow policyholders to name beneficiaries who will receive the death benefit upon their passing. During divorce proceedings, the allocation of assets and financial responsibilities, including life insurance policies, may be addressed. A QDRO can specify how life insurance benefits should be allocated or maintained for the benefit of the former spouse or dependent. The QDRO may require the policyholder to maintain a specific beneficiary designation consistent with the divorce settlement.

  2. Ownership or Assignment of Policies: In some cases, life insurance policies may be owned or assigned to the former spouse as part of the divorce settlement. A QDRO can outline the ownership or assignment of these policies and specify the responsibilities of both parties regarding premium payments and beneficiary designations. If the policyholder fails to comply with the QDRO’s provisions, it may lead to an interpleader lawsuit initiated by the former spouse or dependent to enforce the court’s order.

  3. Premium Payment Responsibilities: A QDRO can specify which party is responsible for paying the premiums on the life insurance policies maintained for the benefit of the former spouse or dependent. If the responsible party fails to make premium payments as required by the QDRO, it may lead to a lapse in the policy, potentially resulting in an interpleader action.

  4. Disputes over Compliance: Disagreements between the parties or disputes over the interpretation or compliance with the QDRO can arise. If one party believes that the other is not adhering to the QDRO’s provisions regarding life insurance policies, they may initiate an interpleader lawsuit to seek a court’s resolution and enforcement of the order.

In the context of a life insurance interpleader, the insurance company may become involved when there are conflicting claims or disputes between the former spouse or dependent and the policyholder’s designated beneficiaries (e.g., current spouse or children). The insurance company may deposit the disputed funds with the court and seek guidance on how to distribute the proceeds in accordance with the QDRO or court order.

In summary, a QDRO can impact a life insurance interpleader by outlining the allocation, ownership, and responsibilities related to life insurance policies following a divorce or separation. Disputes or non-compliance with the QDRO’s provisions can lead to interpleader lawsuits initiated by the parties involved or by the insurance company to ensure proper distribution of the proceeds.

How an Indiana Interpleader Lawsuit Works

An Indiana Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Columbian Mutual Life, Atlantic American Life or Boston Mutual 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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