Life Insurance listed wrong owner - now a mess!!

[ROSSCO]

What is the name of your state? What is the name of your state? Kansas

My father passed away Nov. 2002. Before that he had been hospitalized for 29 weeks, in the process of a divorce and foreclosure. I was his power of attorney which he had drawn up during his hospital say. I attended his divorce proceedings and all other legal meetings for him. He was divorced Oct. 2002 with property issues still pending at the time of his death. He had a life insurance policy that I changed the beneficiaries on - from his ex-wife to his 4 daughters. It listed him as the owner on the policy and was told numerous times via phone conversations that my dad was the owner & his ex was the beneficiary. I made all of the proper changes and received them back from the insurance company. I received a duplicate policy listing dad as the owner and an addendum for the beneficiary changes showing his 4 daughters. After he passed away we filed a death claim as well as did his ex-wife. (she had the original policy and would never turn it over)

We then all received a letter from the insurance company that stated they were reviewing it because there were 2 claims filed. The ex received a letter that she need to have forms filled out by us 4 girls because we were listed the beneficiaries. Then after a few months (which we expected) the insurance company turned it to an interpleader. After receiving all of the court documents the insurance company is now saying his Ex was the owner as well as beneficiary and dad was the insured. All insurance documents state dad as the owner BUT the application shows the Ex wrote her name in the owner section. (owner, if other than insured) When the policy was first taken out it was with one company and then bought out by another one. Both companies show dad as the owner & insured and his ex as the beneficiary. It is on the application that states different - it shows her as the owner.

We don’t know if we should pursue the court action or not? Do you think the insurance company was at fault and made an error??

Was this a mess up by the insurance company?

 

[CIAA]

ROSSCO,

It would certainly seem that the exwife has a claim, as the insurance company is supposed to issue the type and manner of insurance applied for, if all other qualifiers are met. There is always the argument that if you or your dad had known of the screw up you could have purchased other insurance, but by that time your dad was most likely uninsurable. What does youer attorney say?

We are not attorneys and do not give legal advice or legal opinions. Any opinions or comments in our response should not be regarded as a substitute for professional legal advice.

 

[ROSSCO]

THE LAWYER SAYS

The attorney we have right now is the one our dad had at the time. So we know that we cannot have him represent us in this case due to conflict of interest. Right now all we have done is send in our answer to the court that we acknowledge the case. The lawyer said he would like to see if we can agree with the ex that we all want it out of that higher court (because that lawyer will eat everything up the longer we keep going @ $250.00 hour) And get it back here to a court in escrow and maybe all sit down to make an agreement of splitting it somehow. The thing is - the lawyer seems to feel since they still had the property issues pending at the time of dad's death - that is should be settled in the property settlement. I don't know if that is right or not. Another thing is that if we can agree on splitting it somehow now - we would avoid legal costs by any of us & get it done and over with.