Interpleader Lawyer

Interpleader Lawyer North Dakota

Our North Dakota 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.


North Dakota Life Insurance Interpleader Cases

The absence of a designated beneficiary or a clear beneficiary designation on a life insurance policy can potentially lead to a life insurance interpleader. An interpleader is a legal action initiated by the insurance company when there is uncertainty or dispute regarding the rightful beneficiary or beneficiaries of the policy proceeds. Here are scenarios in which the absence of a designated beneficiary can result in a life insurance interpleader:

  1. No Named Beneficiary: The policyholder fails to specify any beneficiaries when purchasing the policy, leaving the beneficiary designation section blank. In the absence of clear instructions, the insurance company may not know who is entitled to receive the death benefit.

  2. Contested Beneficiary Designation: In some cases, the policyholder may have attempted to designate a beneficiary but left the designation ambiguous or subject to interpretation. For example, they may have named a generic entity like “my estate” or used vague language that could be open to multiple interpretations.

  3. Changes Not Updated: The policyholder may have initially designated a beneficiary but failed to update the designation following significant life events, such as marriage, divorce, the birth of children, or the death of the designated beneficiary. This can lead to confusion regarding the current beneficiary.

  4. Multiple Potential Beneficiaries: When there are multiple potential claimants, such as surviving family members, ex-spouses, children, or other dependents, and no clear designation indicating who should receive the proceeds, the insurance company may initiate an interpleader to resolve the dispute.

  5. Estate as Beneficiary: If the policy simply designates the policyholder’s “estate” as the beneficiary, it can lead to an interpleader if there are multiple heirs or beneficiaries of the estate with competing claims to the insurance proceeds.

  6. Failure to Specify Percentages or Allocation: Even if there are named beneficiaries, disputes can arise if the policy does not specify how the death benefit should be distributed among them, leading to uncertainty and potential legal conflicts.

  7. Missing or Unclear Documentation: If the policy documentation is incomplete or contains errors, such as illegible handwriting, contradictory information, or missing signatures, it can create ambiguity regarding the beneficiary designation.

In these scenarios, the insurance company may be uncertain about the proper distribution of the death benefit and may choose to file an interpleader action in court. During the interpleader process, the insurer deposits the disputed funds with the court and allows the court to determine the rightful beneficiary or beneficiaries based on the available evidence, including the policy documents, applicable laws, and any relevant legal proceedings, such as divorce decrees or wills.

A life insurance interpleader aims to protect the insurance company from liability and ensures that the funds are distributed in accordance with the court’s judgment, avoiding potential legal disputes between claimants. It is in the insurer’s interest to have the court make a final determination, especially when there is uncertainty or conflicting claims regarding the beneficiary designation.

How a North Dakota Interpleader Lawsuit Works

A North Dakota Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Kemper Life, One America Life or Country Financial 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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