You filed a life insurance claim after losing someone you love. Instead of a check, you got a letter from the insurance company saying the claim is denied because the policyholder allegedly made a misrepresentation on the application. Maybe they failed to disclose a medical condition. Maybe they answered a health question incorrectly. Either way, the insurance company is refusing to pay.
Read MoreA life insurance interpleader in Texas is a lawsuit filed by an insurer when two or more people claim the same life insurance benefits. The insurer asks the court to decide who receives the proceeds so the insurer does not risk paying the wrong person.
Read MoreBeneficiary disputes don’t happen only with life insurance policies. They also arise with brokerage accounts, investment accounts, and bank accounts that use beneficiary designations. This case study comes from a real dispute I handled in Collin County, Texas, and it illustrates how interpleader actions work and how early legal intervention can protect a beneficiary’s rights.
Read MoreAs a Texas attorney who has handled life insurance beneficiary disputes and interpleader lawsuits for over a decade, I’ve seen the same critical mistakes again and again. Here are the top three errors people make that can cost them everything:
Read MoreAt Texas Life Insurance Lawyers, we focus exclusively on disputes involving denied life insurance benefits, wrongful beneficiary designations, and interpleader lawsuits. We represent clients across Texas and in federal courts when insurance companies refuse to pay or file suit to force the claimants to litigate among themselves.
Read MoreAt Texas Life Insurance Lawyers, we represent clients across Texas who find themselves caught in the middle of these high-stakes disputes. If you’ve been named in an interpleader case—or suspect one is coming—here’s what you need to know.
Read MoreSome cases remind me why I do this work. A recent claim involved a grieving widow who should have received life insurance benefits without a fight. Instead, her claim was denied, leaving her in financial uncertainty at the worst possible time.
Read MoreTwo things I always emphasize:
Accidental death coverage is not life insurance
ERISA cases are governed by different rules and require particular expertise
We routinely handle life insurance beneficiary disputes. These disputes arise when multiple people claim they should receive the life insurance benefits.
Read MoreThe key legal issue in this case was whether Texas law, specifically Texas Family Code § 9.301, applied to automatically revoke Holly’s beneficiary status after the divorce, despite the fact that the life insurance policy was purchased before they were married.
Read MoreAn interpleader is a form of a lawsuit filed by a life insurance company to resolve competing claims to life insurance proceeds. In short, the insurance company sues the competing claimants. But they aren’t sued because they have done something wrong and the life insurance company claims they should pay. Instead, they are sued in order to come to the court and explain why they should receive the life insurance policy benefits, instead of the competing claimant.
Read MoreA recent Fifth Circuit Court of Appeals decision involved the intersection of federal bankruptcy law and Texas law regarding ownership of a life insurance policy. The court determined that the insured and the beneficiaries of life-insurance policies can claim the cash surrender value of those policies as exempt.
Read MoreIn a very recent decision, the Fifth Circuit Court of Appeals affirmed a federal magistrate judge’s decision to deny life insurance benefits. The life insurance company claimed it was proper to deny the life insurance benefits to a widow, because her husband had misrepresented his smoking history on the life insurance application. After a bench trial the magistrate agreed and the court of appeals affirmed the denial decision.
Read MoreI handle a lot of life insurance cases. Primarily in Texas, but at times in other states as well. Life insurance beneficiary disputes make up half or more of my caseload. Because I handle them so often, I have a good feel for not only the law but also the strategy of litigating and resolve the disputes. Also, after a dozen years I have a good idea of which cases are strong and which have significant problems, either factually or legally. I do take some difficult cases, but craft a strategy to maximize the result.
Read MorePublic policy obviously does not reward unjustified killing. What happens to the life insurance proceeds if the beneficiary is a murderer?
Read MoreA former husband was found in contempt for failing to comply with the divorce court’s judgment that he maintain a life insurance policy, with his former wife as the beneficiary for the benefit of their children
Read MoreIn a decision issued today, the Texas Supreme Court affirmed that the intent to deceive standard is still the law in Texas. I had written about the intent to deceive standard previously. Essentially, a life insurance company cannot deny payment on a claim because of a misrepresentation on a policy application, unless it can prove the applicant intended to deceive the life insurance company.
Read MoreWe routinely handle life insurance beneficiary interpleader cases for clients. A life insurance company files an interpleader lawsuit when there are competing claims to life insurance benefits.
Read MorePrimerica v. Cruz, et al is a recent decision in a life insurance beneficiary interpleader case from the North District of Texas. The case involved a dispute over life insurance proceeds for a policy issued by Primerica to Patrick McClevland.
Read MoreMany people obtain life insurance through their employer. If it is through a private employer, the life insurance benefits are governed by a federal law: the Employee Retirement Income Security Act of 1974, commonly referred to as ERISA.
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