Boodell & Domanskis, LLC recently obtained summary judgement for a client in an interpleader action, resulting in the client being declared the beneficiary of her deceased husband’s life insurance policy. The dispute arose because the deceased owner of a life insurance policy removed his spouse, B&D’s client, as the beneficiary of his life insurance policy shortly before he passed away and the newly named beneficiary sought to recover all the proceeds. After the insurance company initiated the interpleader action in the Northern District of Illinois, B&D moved for summary judgment and argued that our client’s rights to the life insurance policy vested when she continued to pay the premiums and otherwise relied on assurances from the deceased that she remained the beneficiary. In granting B&D’s motion, the court agreed that our client had become a vested beneficiary and ruled that the owner of a life insurance policy cannot remove a vested beneficiary. As a result, the court granted B&D’s motion and awarded 100% of the proceeds to our client.
Max Stein led the B&D effort, with assistance from Tom Boodell and Elisheva Cohen.