Interpleader Lawyer

Interpleader Lawyer South Carolina

Our South Carolina 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.


South Carolina Life Insurance Interpleader Cases

While beneficiary disputes are a common cause for life insurance interpleaders, there can be other situations that lead to interpleaders in the context of life insurance. Here are some common causes for a life insurance interpleader excluding beneficiary disputes:

  1. Coverage Disputes: Sometimes, there may be a dispute between the insurance company and the policyholder’s estate or beneficiaries regarding whether the policy was in force at the time of the insured’s death. This can occur if there are questions about premium payments, policy lapses, or misrepresentations on the application.

  2. Missing or Incomplete Information: If the insurance company receives a claim that lacks critical information or documentation, such as a death certificate, medical records, or other necessary paperwork, they may initiate an interpleader to determine the validity of the claim and the rightful beneficiaries.

  3. Multiple Policies: In cases where the deceased had multiple life insurance policies with different companies, and there is uncertainty about which policy should pay out or in what order, an interpleader can be initiated to sort out the complexities and coordinate payouts.

  4. Estate Claims: When the deceased’s estate makes a claim on the life insurance policy, and there are questions or disputes regarding the estate’s right to the benefits or the distribution of assets, an interpleader may be necessary to resolve these issues.

  5. Contestability Period Investigation: During the contestability period (typically the first two years of the policy), the insurance company has the right to investigate and potentially deny a claim if they find material misrepresentations or fraud on the policy application. If such issues arise, it can lead to an interpleader.

  6. Accidental Death and Dismemberment Claims: In cases where the cause of death or dismemberment is subject to debate or investigation, the insurance company may initiate an interpleader to determine whether the policy’s conditions for accidental death or dismemberment benefits were met.

  7. Homicide Investigations: If there are suspicions or evidence of foul play in the insured’s death, the insurance company may cooperate with law enforcement in conducting an investigation. This can lead to an interpleader to ensure that the proper beneficiaries receive the benefits if the insured’s death is ruled a homicide.

  8. Non-Disclosure of Material Information: Besides beneficiary-related misrepresentations, policyholders are required to disclose material information about their health, medical history, and lifestyle. Failure to do so can lead to an interpleader if the insurance company discovers significant omissions or false information.

In these situations, the goal of the interpleader is to bring all relevant parties and evidence into a legal proceeding to resolve any disputes or uncertainties regarding the life insurance claim. The court’s decision will ultimately determine how the benefits should be distributed or whether the claim should be denied based on the facts and circumstances of the case.

How a South Carolina Interpleader Lawsuit Works

A South Carolina Interpleader Case Background:

Mr. Anderson, a successful business owner, held a substantial life insurance policy with Life Insurance Company such as Genworth Life, Freedom Life or Forethought 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.

Contact us