Interpleader Lawyer

Interpleader Lawyer Maine

Our Maine 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 claim denials are common in Maine.

Maine has a statute of limitations for filing a lawsuit against an insurer for breach of contract or bad faith. The statute of limitations is six years from the date of the claim denial or the date the insured discovers or should have discovered the facts giving rise to the cause of action, whichever is later.

Maine also has a mandatory mediation program for resolving disputes between insurers and insureds over life insurance claims. The mediation program is administered by the Bureau of Insurance and is available to any insured who has exhausted the internal appeals process of the insurer and has not filed a lawsuit. The mediation program is voluntary for the insurer, but if the insurer agrees to participate, it must pay a fee of $250 and abide by the outcome of the mediation.

Maine law also provides some protections for beneficiaries of life insurance policies that are subject to a contestability clause. A contestability clause is a provision in a life insurance policy that allows the insurer to deny or rescind the policy within a certain period of time (usually two years) after its issuance if the insured made a material misrepresentation or omission in the application. Maine law prohibits insurers from contesting a policy after it has been in force for two years, unless the insured made a fraudulent misrepresentation or omission with intent to deceive. Maine law also requires insurers to provide written notice to beneficiaries within 60 days of receiving proof of death if they intend to contest a policy, and to complete their investigation and make a final determination within 90 days of receiving proof of death.

An interpleader action protects the life insurance company from being sued by either claimant for paying the wrong person. It also allows the court to resolve the dispute in a fair and impartial manner. However, an interpleader action may also cause delays and expenses for the claimants, who may have to hire lawyers and participate in litigation.

Some common situations where an interpleader action may occur in life insurance are divorce, remarriage, beneficiary changes, fraud, forgery, or lack of mental capacity of the policyholder. If you are involved in a life insurance interpleader in Maine, you may want to consult with an experienced life insurance lawyer who can help you protect your rights and interests.


Maine Life Insurance Interpleader Cases

A life insurance interpleader may arise in situations involving murder when there are conflicting claims to the policy proceeds, and the insurance company is uncertain about the rightful beneficiary. Here are several possible situations in which murder could lead to a life insurance interpleader:

  1. Multiple Beneficiary Claims:

    • If the policy lists multiple beneficiaries, and one beneficiary is the alleged murderer while others are innocent parties, a dispute may arise over who is entitled to the proceeds.
  2. Contingent Beneficiary Dispute:

    • In cases where the primary beneficiary is the alleged murderer, and the contingent beneficiary is an innocent party, a dispute may occur over the validity of the contingent designation.
  3. Beneficiary Contestation:

    • If the alleged murderer is named as the beneficiary but is charged with the insured’s murder, other beneficiaries or family members may contest the designation, leading to a dispute.
  4. Allegations of Wrongful Death:

    • If beneficiaries believe that the insured’s death was a result of wrongful actions by the named beneficiary, such as murder or foul play, they may contest the beneficiary’s claim, leading to a dispute over the proceeds.
  5. Criminal Conviction:

    • If the alleged murderer is convicted of the insured’s murder, this conviction may impact their eligibility to collect the life insurance proceeds. Innocent beneficiaries may assert their claims to the benefits.
  6. Lack of Conviction:

    • In cases where the alleged murderer is not convicted of the insured’s murder due to a lack of evidence or other legal factors, beneficiaries may dispute their entitlement to the proceeds, especially if they believe the alleged murderer is responsible.
  7. Complex Legal Proceedings:

    • Complex legal proceedings, such as criminal trials and investigations, may delay the resolution of beneficiary disputes. The insurance company may choose to initiate an interpleader lawsuit to deposit the funds with the court and seek a legal determination of the rightful beneficiary.
  8. Lack of Clarity:

    • When the circumstances surrounding the insured’s death are unclear or subject to ongoing investigations, the insurance company may be uncertain about the proper beneficiary designation, prompting them to initiate an interpleader action.

In such cases, the life insurance company may deposit the policy proceeds with the court and name all relevant parties as defendants in the interpleader lawsuit. The court will then oversee the proceedings and determine who is entitled to receive the insurance proceeds based on the available evidence, legal arguments, and applicable laws.

A life insurance interpleader in murder-related cases helps ensure that the benefits are distributed fairly and in accordance with the court’s decision, allowing for a legal resolution when there are disputes or uncertainties surrounding the beneficiary designation due to allegations of murder or wrongful death.

How a Maine Interpleader Lawsuit Works

A Maine Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Midland National, Globe Life or Wilton 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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