Interpleader Lawyer

Interpleader Lawyer Kansas

Our Kansas 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.

Kansas life insurance claims are denied frequently. Some specific life insurance law includes:

Kansas has bankruptcy protection for life insurance policies, which means that the cash value and death benefits of a policy are exempt from the claims of creditors in case of bankruptcy. This applies to policies owned by the debtor or by a spouse or dependent of the debtor, as long as the beneficiary is also a spouse or dependent.
Kansas has specific rules for accidental death and dismemberment (AD&D) claims, which are often denied by insurance companies based on various exclusions or limitations. For example, some AD&D policies may not cover deaths caused by illness, suicide, intoxication, or criminal acts. If an AD&D claim is denied, it is advisable to contact a life insurance attorney in Kansas immediately to review the case and appeal the decision.

A Kansas life insurance interpleader is a legal procedure that occurs when there are two or more parties who claim to be the rightful beneficiary of a life insurance policy. The life insurance company, as a neutral stakeholder, files a lawsuit and deposits the policy proceeds into the court’s registry, and asks the court to decide who should receive the money. This way, the life insurance company avoids the risk of paying the wrong person and being sued by the other party.

Divorce: If a couple gets divorced and the policyholder does not change the beneficiary designation, there may be a dispute between the ex-spouse and the current spouse or other family members over who should get the policy proceeds. In some states, divorce automatically revokes the ex-spouse as the beneficiary, but Kansas does not have such a law. Therefore, the life insurance company may file an interpleader action to resolve the conflict.
Multiple beneficiaries: If a policyholder names more than one beneficiary and does not specify how to divide the policy proceeds among them, there may be a disagreement among the beneficiaries over how to split the money. For example, if a policyholder names his three children as beneficiaries, but does not indicate what percentage each child should receive, the children may argue over who deserves more or less. The life insurance company may file an interpleader action to let the court decide how to distribute the money fairly.
Contested beneficiary change: If a policyholder changes the beneficiary designation shortly before death, there may be a question about whether the policyholder had the mental capacity to make the change or was influenced by someone else. For example, if a policyholder names his new girlfriend as the beneficiary instead of his long-time wife, the wife may challenge the validity of the change and claim that the policyholder was not in his right mind or was coerced by the girlfriend. The life insurance company may file an interpleader action to avoid liability and let the court determine who is entitled to it.


Kansas Life Insurance Interpleader Cases

Ex-spouses and interpleader actions.

Scenario: John, a policyholder, has been married three times during his life and has taken out life insurance policies at various points. He named different beneficiaries on each policy, and he never updated his beneficiary designations after divorcing his previous spouses. His three ex-spouses are Amy, Lisa, and Sarah. The policies are as follows:

  1. Policy A: John’s first policy was taken out when he was married to Amy. Amy is named as the beneficiary.

  2. Policy B: John took out his second policy when he was married to Lisa. Lisa is named as the beneficiary.

  3. Policy C: John’s third policy was purchased after his divorce from Lisa but before his marriage to Sarah. Sarah is named as the beneficiary.

Now, consider the following events:

  • John passes away, and the three policies become due for claims.
  • Amy, Lisa, and Sarah all file claims to collect the life insurance proceeds from their respective policies.
  • The insurance company faces a dilemma because the policies have conflicting beneficiary designations, and there is no clear documentation indicating whether John intended to maintain these designations after subsequent divorces and marriages.

In this scenario, the multiple divorces and beneficiary designations create a potential conflict over the distribution of the life insurance proceeds. Amy, Lisa, and Sarah all have legitimate claims based on the beneficiary designations listed on their respective policies. However, there is ambiguity regarding John’s intentions after each divorce and whether he intended to update his beneficiary designations.

To resolve the conflicting claims, the insurance company may choose to initiate a life insurance interpleader lawsuit. In this legal action, the insurer deposits the policy proceeds with the court and names Amy, Lisa, and Sarah as the defendants. The court would then determine the rightful beneficiary based on the available evidence, such as divorce decrees, documentation of beneficiary changes (if any), and any other relevant information. The court’s decision would clarify which ex-spouse is entitled to the proceeds from each policy.

An example of the court’s decision might be:

  • Policy A: The court determines that John intended to keep Amy as the beneficiary even after his divorce, and the proceeds from Policy A go to Amy.
  • Policy B: The court finds that John intended to maintain Lisa as the beneficiary, and the proceeds from Policy B go to Lisa.
  • Policy C: The court determines that Sarah should be the beneficiary of Policy C, as it was taken out after John’s divorce from Lisa but before his marriage to Sarah.

By initiating the interpleader lawsuit, the insurance company can avoid potential legal disputes and ensure that the life insurance proceeds are distributed according to the court’s decision, providing clarity in a complex situation involving multiple divorces and beneficiary designations.

How a Kansas Interpleader Lawsuit Works

A Kansas Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Ohio National Life, Chubb Life, or Veterans 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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