Life Insurance

[[email protected]]

My father passed away in April of 2000. He purchased a life insurance policy through the Federal Employees Group Life Insurance (FEGLI). He named my step-brother and I as the beneficiaries. He made the designation on July 31, 1990. It was witnessed by administrators at his job. My step-mother made a claim on the policy after his death. They denied her claim because she was not listed as the beneficiary of the policy. After being denied of her claim, she decides to make an accusation that my father was coerced into signing the beneficiary form. My father was not taking any medications or under any psychiatric conditions. She has provided no evidence to the insurance company. However, the insurance company seems to be more concerned about her claim then mine. She has demanded that we give her $40,000 from the policy. We told the insurance company that we are not settling with her on this matter because her acussations of coercion lacks merit. The insurance company claims that the accusations of coercion is a matter of fact and must be decided in a court of law. The insurance company is going to file a law suit to figure out who to pay the claim. I want to know what are my rights is this matter. It is obivious that my step-mother is trying to prolong payment of the claim by making these false accusations. Could I sue her for false allegations? How can I make the insurance stop letting her dictate this claim?

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

It is a matter of law --> to find out if coercion exists or not. Not a matter of fact.

Now, I am quite surprised about this insurance company's concern...why would they expend more money to do this?

You should counter sue for filing a frivolous lawsuit and also for abuse of process. Her claim probably lacks merit and any court will figure this out.

 

[kickemincourt]

Why not talk to a lawyer who knows bad faith law and see if the insurance carrier has breached its duty of good faith and fair dealing. If so, you may be able to sue the insurance company for bad faith handling of your claim.

 

[I AM ALWAYS LIABLE]

My response:

I must respectfully disagree with my good friends, LawRat and Kickemincourt.

If you look at the insurance contract, the insurance company has a right, by law, to "Interplead" the benefits of the policy into the court system when there are two or more competing interests in the claimed money. It is not up to the insurance company to decide who is right and who is wrong - - that's up to the court.

Insurers facing conflicting claims for policy benefits may seek relief by filing an interpleader action.

Interpleader is proper whenever "double or multiple claims are made . . . by two or more persons . . . such that they may (expose the person against whom the claims are asserted) . . . to double or multiple liability." [Ca Civ Pro § 386(b)]

(1) Conflicting claims to policy benefits: The following are common examples of conflicting claims to insurance benefits:

(a) Life insurance: Conflicting claims to life insurance benefits may arise where two or more assert a claim to all or part of the death benefits. (E.g., where premiums were paid with community property, the decedent's spouse may claim one-half of benefits payable to anyone else.) [See Life Ins. Co. of North America v. Cassidy (1984) 35 Cal.3d 599, 605-606, 200 Cal.Rptr. 28, 31; Minnesota Mut. Life Ins. Co. v. Ensley (9th Cir. 1999) 174 F.3d 977, 984-985 (applying Calif. law)]

The insurer must disavow any interest in the funds interpleaded: "It is the stakeholder's avowed disinterest in the interpleaded proceeds which gives him (or her) the right to interplead." [See Pacific Loan Management Corp. v. Sup.Ct. (Armstrong) (1987) 196 Cal.App.3d 1485, 1489, 242 Cal.Rptr. 547, 549 (parentheses added)]

An insurer has the right to interplead disputed funds on receipt of conflicting demands. It owes no duty to attempt to resolve the dispute between the warring claimants before incurring the expense of interpleader. [Cantu v. Resolution Trust Corp. (1992) 4 Cal.App.4th 857, 876, 6 Cal.Rptr.2d 151, 161]

The complaint should contain the following allegations:

· the identity of the insurer;

· the identity of the claimants against the insurance proceeds;

· the claimants have made conflicting claims against the insurance proceeds;

· the insurer has no claim to, or interest in the insurance proceeds;

· the amount of the insurance proceeds is undisputed;

· the amount in controversy;

· a request for costs and attorney fees, where appropriate; and

· if the complaint for interpleader is filed in federal court, facts establishing diversity

A plaintiff in an interpleader action (the insurance company) need not allege that the defendants' conflicting claims are valid. The interpleading party may in fact deny liability in whole or in part to any or all of the claimants. [Ca Civ Pro § 386(b)]

An interpleader by the insurer (stakeholder) may be initiated by either complaint or cross-complaint.

(1) Interpleader by complaint: An insurer (stakeholder) faced with conflicting demands for benefits may take the initiative and file suit against the conflicting claimants, forcing them to litigate their respective claims to the funds in question.

(a) Deposit in court: The insurer can deposit the insurance proceeds in question with the clerk of the court at the time of filing the interpleader complaint (no court order is necessary). [Ca Civ Pro § 386(c)]

1) Future proceeds: The court may order proceeds not yet due to be paid into court as they come due, as part of an interpleader. [See Great-West Life Assur. Co. v. Sup.Ct. (Jones) (1969) 271 Cal.App.2d 124, 127, 76 Cal.Rptr. 284, 287--additional moneys, not to exceed amount claimed by claimants, ordered paid into court as they became due]

(b) Effect of deposit: The deposit terminates the insurer's (stakeholder's) liability for interest on the funds. [Ca Civ Pro § 386(c)]

It also discharges the insurer from liability for the amount deposited. Unless a balance is owed, the insurer is then usually dismissed from the action. [Ca Civ Pro § 386.5]

Funds so deposited will be ordered invested in an insured, interest-bearing account. [Ca Civ Pro § 386.1]

Then the two competing interested parties battle it out, in court, between themselves.

IAAL


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[kickemincourt]

IAAL: Good point. thanks.

 

[[email protected]]

Thanks to all of you have replied. I have a question for "I am always liable". Since my step-mother is trying to contest my claim without evidence, and is just doing this out of malice, could I counter sue? She has been forging my signature and sending my father's bills to my house. She has been opening my mail. She has refused to give me my pastport and birth certificate. Before my father passed, he had told her that he has left this insurance policy for me. He had been paying for it directly from his paycheck. What can I do to prevent her from making more false claims?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by [email protected]:
Thanks to all of you have replied. I have a question for "I am always liable". Since my step-mother is trying to contest my claim without evidence, and is just doing this out of malice, could I counter sue? She has been forging my signature and sending my father's bills to my house. She has been opening my mail. She has refused to give me my pastport and birth certificate. Before my father passed, he had told her that he has left this insurance policy for me. He had been paying for it directly from his paycheck. What can I do to prevent her from making more false claims?<HR></BLOCKQUOTE>


My response:

You sue her for your damages for all of the items you point out, and further, and in addition for having opened your mail, you report her to the Postal Inspector for investigation and potential prosecution. She has committed a Federal offense by opening your mail, when the mail is clearly marked with your name. All because she somehow comes into possession of the same, does not confer to her any rights of opening such mail.

See an attorney to exercise all of your rights. And, make that call to the Postal Inspector's office.

IAAL


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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."