Our client contacted us when Minnesota Life Insurance Company refused to pay his claim for life insurance benefits on his deceased mother. Our client was a contingent beneficiary on the policy. The primary beneficiary died soon after the insured, which prompted his estate to file a competing claim. In addition, the insured’s estate also filed a competing claim. Thus, Minnesota Life was faced with 3 competing claims and a large insurance policy on which it was paying a high interest while the case was in dispute.

The group life insurance policy was controlled by ERISA. The insurance company delayed payment of the ERISA claim for 3 months while it was trying to figure out legal issues involving ERISA provisions and conflicting state laws. When the insurer finally filed an interpleader to resolve the dispute and our client retained our firm, Attorney Kadetskaya immediately started legal research and negotiations with the competing claimants. She was able to convince the other two claimants to withdraw their claims based on a lack of legal basis for their claims. The successful resolution of the case resulted in the interpleader action being dismissed and our client receiving the total amount of life insurance proceeds plus interest.

If your case involves a beneficiary dispute, the insurance company will most likely may file an interpleader unless the competing claimants resolve the dispute. Speak with an attorney before an interpleader is filed in order to avoid a lengthy costly litigation. If you are not represented by counsel and the opposing side is offering you a small amount to settle the dispute, do not accept the offer if you feel that it is lower than your portion of the proceeds. Contact Kadetskaya Law Firm for a free consultation to learn about your rights.