Best Answer

Because the Insurance Company doesn't want to be in the middle of it.

interpleader n. the procedure when two parties are involved in a lawsuit over the right to collect a debt from a third party, who admits the money is owed but does not know which person to pay. The debtor deposits the funds with the court ("interpleads"), asks the court to dismiss him/her/it from the lawsuit and lets the claimants fight over it in court.

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โˆ™ 2015-07-16 18:28:31
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Q: If you are named beneficiary and a family member makes a claim why can insurance company file an interpleader action?
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Related questions

What is claims?

It is a department or an action. You die, your beneficiary calls the insurance claims department and places a death claim with them. Your beneficiary receives a death claim check.

Can you dispute life insurance beneficiary?

Unless the policy specifies that the beneficiary designation is irrevocable, the owner of the policy, who is most often the insured, has the right to change the beneficiary of a life insurance policy at any time prior to death. That said, a third party may also contest the right of a beneficiary to policy proceeds by making a claim to them forms required by the company. In that case, there may end up being a contest between the competing claimants, such that the insurer would want to commence an "interpleader action" in a court of competent jurisdiction. The insurer would thereby ask the court to determine which of the claimants it should pay, and by so doing, try to avoid getting in the middle of the dispute. The court would hash out the rights of the parties to the proceeds, and the insurer would pay the winner.

Your brother's company failed to have him sign the life insurance beneficiary form therefore the life insurance money went to your parents is there recourse against the negligence of the company?

No, The insurer provides a means by which we can assign beneficiaries, If those beneficiaries turned out to be your parents then so be it. Without evidence to the contrary, Namely an assignment of proceeds AKA naming you as a beneficiary, the law has no option but to presume that was the intent of the insured. Their is no negligence here on the part of the Company and therefore no liability. The insurance company is only following the law as well as the documented intent of the insured.If you think there was an oversight on the part of your sibling in the assignment of beneficiaries, then you would need to bring your action against the beneficiary and/or the estate of the deceased. Basically you'd have to sue your parents and your brothers estate. The Insurance company would not be a party to your recourse action.

Is an executor of a will able to handle the estate of a beificiary?

No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.

Can the beneficiary named on a life insurance policy be changed by a court?

Sure it can, provided the court has sufficient proof to esablish doing so would be in everyone, particularly the children's best interest. This might be possible, but if so it's done very, very rarely. I have never heard of it. A court might pressure the policy owner to change the beneficiary, but I don't believe they can force them to, or arbitrarily change it.

If a crooked funeral home withholds your insurance policy where you are the main beneficiary and signs your name and buries your loved one without your approval what can you do?

Signing your name to a policy without your permission is insurance fraud. Start with the insurance company who should then pay the benefits to you and take action to recover the funds from the funeral home. From there you can contact the regulatory agency that governs funeral home as well as the DA in your county.

What is recourse for homeowner whose insurance company paid contractor in full and contractor refuses to complete the job as agreed to with the insurance company?

Your contract with the tradesman is between "You and the Contractor", He did not contract with your insurance company. All the insurance company did is agree to pay the bill for you. So you would need to bring your own civil or criminal action against your contractor depending on the circumstances.

What should you do if a victim of a simple car accident claims injuries?

If a victim of a simple car accident claims injuries, it is best to talk to your insurance as soon as possible. Your insurance company will then require that the victim's insurance company provides proof of injury. If it is found that the victim is injured, your insurance company will instruct you on the next course of action.

Example of a criminal and a civil action?

The trial of a criminal offense such as an Armed Robbery is a criminal action. If you sue someone's insurance company for damage's to your vehicle, that is an example of a civil action.

What provisions should a woman take action on after having a five year life insurance policy and a recent divorce?

For the life insurance policy, I'd say change the beneficiary immediately! Now the things to do after the divorse... Get your life back on track and move on!

What happens when you withdraw a car accident insurance claim?

If its only with your insurance company, generally, nothing. If you are speaking of a court action you have filed, you will have to withdraw it from the court's docket.

Can executor be sued by a beneficiary?

A beneficiary can sue an executor. There could be any number of causes of action including fraud, misappropriation and breach of trust.

What happens if you have an accident and your insurance company refuses to pay?

Many health insurance companies offer what is called "Pay and Chase". Meaning, your health insurance company will pay your hospital claims and chase the automotive insurance for the rest of the money. It is possible that you may have this type of plan. If that is not a possibility to you, you could entertain the possibility of legal action. It might be far less costly and stressful to contact your insurance company first.

What if you need repairs on your car but the at fault driver's insurance company still hasn't finished the claim?

then sue for delay of action!

If my neighbors house catches on fire and mine is damaged who is responsible for damages?

In all likliehood - your insurance company would pay to repair your dwelling and then they would take action (called "subrogation") against your neighbors insurance company to collect from their insuror.

Is it legal for a insurance company to drop homeowners insurance on a deceased's home due to house being vacant?

The insurance company can only take action as premitted by the state in which it operates in. So, if your state, allow such action, then it is legal. The reason why, in this case, it would be warranted. The insurance company had a legal contract with the deceased. Once you pass away, then the legal obligation ends. Also, the risk has changed as a vacant home is more prone to claims than an occupied one. Most company provide coverage on vacant home as an accomodation for their clients. However, it is hard press to find a company to take a vacant home as a new policy.

Can you sue your homeowner insurance company for bad faith for mold issues?

Suing a company for bad faith is a complicated question. Each state has different requirements for proceeding with a bad faith cause of action. I recommend that you contact an attorney in your local area who specializes in first party insurance issues. He/she will be able to explain to you whether you have a case against your insurance company.

What is the law regarding grandparents insurance policy if the grandson is deceased and owes child support in Texas?

If question refers to whether or not the insurance benefit is subject to seizure for child support arrearages. If that is the case, the answer would be yes. Any monies garnered from the insurance benefit that belongs to the obligated parent would be subject to garnishment for child support arrearages. If the named beneficiary of the insurance benefit is deceased and the grandparent(s) are still living, they can legally have the policy amended and another beneficiary named. In that case the monies would not be a part of the deceased grandson's estate and not subject to probate action nor distribution for his debts.

How do you know if someone has life insurance on you without consent?

If such a scenario arises and you have objection to it, bring the matter to the notice of the official concerned of the branch office of the insurance company concerned in writing for their immediate needful action.

What is American Equity index 5 rated?

If you are referring to American Equity Investment Life Insurance Company (and not the mortgage company) and have an Index-5 then you may be entitled to funds from a class action settlement.

What company makes Action Replay?

The company 'Datel' makes Action Replays.

What happens if you have a wreck without auto insurance in Texas?

If there was a police officer involved then you would probably be cited for not having auto insurance. If you are found to be at fault then legal action could be brought against you by either the other party or the other parties insurance company.

Which action must a life insurance policyowner take to assign his or her rights in a policy to a third party?

All life insurance companies have a "Policy owner change form". Your agent can provide it, or you can contact your company directly.

How do you file a claim to collect for damages if the responsible business has gone bankrupt?

Even if the company is now bankrupt they probably had insurance when they were in business but you will have to find out the insurance company. Try to contact the attorney that is handling their BK and notify him that you have a claim. Your best action is to file a claim with your insurance carrier and let them go after the other party. How this will affect your rates depends on the policies of your carrier. Ask your insurance agent.

Can a parent or guardian be the wrongful death beneficiary of his or her adult child in Alabama or Nebraska if that child has no wife or children?

The estate is the beneficiary of a Wrongful Death action. The parents and/or siblings would inherit from the estate.