North Carolina Life Insurance Interpleader Lawyers

If you are involved in a life insurance interpleader case in North Carolina, contact experienced life insurance lawyers Mike Malone as soon as possible to discuss your case. Mr. Malone can be reached directly at 919-573-1423.

What is a Life Insurance Interpleader Case?

A life insurance policy is intended to provide important financial security to loved ones and family members in the event of the policyholder’s death. An Interpleader case is a lawsuit that is used to determine who is entitled to the benefits of the policy.

Unfortunately, there are scenarios where several different individuals make a claim to the life insurance company for the policy benefits.  For example, a policyholder may have changed the beneficiary designation just prior to death.  In some situations, the newly designated beneficiary is someone close to the policyholder which leads to questions about whether the policyholder was unduly influenced in making the change.  In these situations, there are frequently questions about the mental capacity of the policyholder at the time of the beneficiary change.

In some cases, there are questions about whether the policyholder properly submitted a change of beneficiary.  For instance, some insurance policies have strict rules regarding how to change a beneficiary.  If these rules were not followed, the beneficiary designation may be determined to be invalid.

Why did the Insurance Company file an Interpleader Case

The insurance company is legally responsible for determining the correct beneficiary under the policy.  If the insurance company makes the wrong decision and disburses the money to the wrong beneficiary, the insurance company could be forced to pay the money again to the correct beneficiary.  When confronted with multiple competing claims for the same life insurance benefit, the insurance company often initiates what is called an “interpleader” lawsuit.

Why is this Interpleader Case in Federal Court

Many interpleader lawsuits are filed in federal court.  This typically happens when the insurance company is from another state other than North Carolina, and the amount of the life insurance benefit is greater than $75,000, thus giving the federal court jurisdiction over the claim. 

In North Carolina, there are three federal courts, the Eastern District, the Middle District, and the Western District.  Life insurance attorney Mike Malone has successfully handled insurance cases in all three federal courts of North Carolina. 

Once filed by the insurance company, this interpleader action forces all involved parties to appear in court.  Once in court, the interpleader case will often be litigated as a case between the competing claimants.  If you are one of these competing parties, the difference between you receiving everything or nothing can depend on obtaining experienced legal counsel.

Don’t Ignore the Interpleader Lawsuit

If you have received notice of an Interpleader case, you have a limited time to respond to the lawsuit.  In federal court, that is usually 20 days while the time is usually 30 days in state court.  If you fail to respond within this time frame, the court might declare that the other claimant is entitled to the life insurance benefits without even hearing your side of the story.

Contact attorney Mike Malone immediately to discuss your rights in a North Carolina Interpleader claim.  He can be reached directly at 919-573-1423 or by email at mmalone@hendrenmalone.com. 

We offer a free consultation on North Carolina Interpleader claims and we will charge no fee unless we win your Interpleader claim.