Interpleader Lawyer

Interpleader Lawyer Massachusetts

Our Massachusetts 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.

Recent interpleader case:

John, a resident of Boston, Massachusetts, had a life insurance policy worth $500,000 with Prudential Life Insurance Company. He named his wife, Mary, as the primary beneficiary and his son, David, as the contingent beneficiary. John and Mary divorced in 2022, but John did not change his beneficiary designation. John died in a car accident in 2023.

Mary filed a claim with Prudential Insurance Company for the death benefit However, David Smith also filed a claim, arguing that he was the beneficiary because of the automatic revocation statute. Prudential Insurance Company was unsure who to pay and did not want to risk paying the wrong person and facing a lawsuit. Therefore, Prudential Insurance Company filed an interpleader action in the federal district court of Massachusetts, depositing the $500,000 policy proceeds with the court and naming Mary and David  as defendants.

The court then notified Mary and David of the interpleader action and ordered them to file their responses within 30 days. Mary and David hired life insurance interpleader lawyers and submitted their arguments to the court. Mary claimed that she was still entitled to the death benefit because John never intended to disinherit her and did not update his beneficiary designation after the divorce. She also argued that the divorce decree did not expressly address the life insurance policy or waive her rights as a beneficiary. David claimed he was entitled to the death benefit due to the automatic revocation statute in Massachusetts, which applies to all life insurance policies issued in the state. He also argued that John’s failure to update his beneficiary designation was irrelevant and that the divorce decree did not need to mention the life insurance policy or waive Mary’s rights.

The court reviewed the evidence and arguments presented by both parties and decided that David was the rightful beneficiary of the life insurance policy. The court applied Massachusetts law which provides that a divorce revokes any revocable disposition of property made by a divorced individual to his former spouse in a governing instrument, such as a life insurance policy. The court found that John’s beneficiary designation was revocable and that it was revoked by the divorce. The court also found that John’s intent was not relevant and that there was no evidence that he wanted to keep Mary as his beneficiary after the divorce. The court further found that the divorce decree did not need to expressly address or waive Mary’s rights as a beneficiary for the revocation to take effect.

The court then ordered Prudential Insurance Company to pay the $500,000 policy proceeds to David from the escrow account. The court also awarded David his attorney fees and costs from the policy proceeds. The court dismissed Mary’s claim and entered a final judgment in favor of David.


Massachusetts Life Insurance Interpleader Cases

A life insurance interpleader can occur in cases involving suicide if there is uncertainty or dispute over whether the policy covers suicide and under what circumstances. Here’s how suicide can lead to a life insurance interpleader:

  1. Contestable Period: Many life insurance policies contain a contestability clause that typically applies during the first two years of the policy. This clause allows the insurance company to investigate the validity of the policy and any related claims. If the insured dies by suicide during this contestable period, the insurance company may conduct a thorough review of the circumstances surrounding the death and the information provided in the policy application.

  2. Misrepresentation or Concealment: If the policyholder provided false or incomplete information on the application regarding their mental health history or any previous suicide attempts, it can complicate matters. If the insurance company discovers such misrepresentations during the investigation, they may contest the claim on the grounds of fraud or misrepresentation.

  3. State Laws and Policy Terms: The handling of suicide claims can vary depending on the state laws and the specific terms and conditions of the insurance policy. Some states have laws that mandate different suicide exclusion periods or requirements. Policies may have different clauses related to suicide, such as an exclusion for suicide within the first two years of the policy or full coverage for suicide after a certain waiting period.

  4. Determining Intent: Insurance companies may investigate the insured’s state of mind at the time of suicide. If there is evidence to suggest that the insured took their own life intentionally, it can impact the insurance company’s decision on whether to pay the claim. However, determining intent can be challenging and may require legal and medical evaluations.

  5. Beneficiary Disputes: In some cases, there may be disputes among the beneficiaries or between the beneficiaries and the insurance company regarding whether the death was a result of suicide or another cause. These disputes can lead to an interpleader lawsuit, where the court is asked to determine the validity of the claim and the proper distribution of the proceeds.

  6. Complex Policy Terms: Some insurance policies have complex terms related to suicide, including provisions for partial payouts or waiting periods. If the policy language is unclear or ambiguous, it can lead to disagreements and necessitate a legal resolution through an interpleader action.

  7. Legal Challenges: Beneficiaries or claimants may challenge the insurance company’s denial of a suicide claim on legal grounds, such as arguing that the suicide exclusion is not enforceable or that the policy language is ambiguous. This can result in a lawsuit that prompts the insurance company to initiate an interpleader action to resolve the dispute.

In the event of a suicide claim, it is essential for all parties involved, including beneficiaries, to carefully review the insurance policy, understand its terms, and seek legal guidance if there are any disagreements or uncertainties. Insurance companies may also initiate interpleader lawsuits to protect themselves from legal liability and ensure that the correct beneficiaries receive the policy proceeds, especially when there is ambiguity or conflict surrounding suicide claims.

How a Massachusetts Interpleader Lawsuit Works

A Massachusetts Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as American Fidelity Life, Lincoln Benefit Life or Inter-American 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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