- Amount
- $111,000 (annuity proceeds awarded to our client, plus interest)
- Counsel
- Interpleader Law
- Result for
- The owner's daughter, the named beneficiary, our client
- Case
- Transamerica Advisors Life Insurance Co. v. Marsch
- Court
- U.S. District Court, Middle District of Louisiana
- Docket
- No. 3:16-cv-00247-RLB
- Decided
- March 23, 2017
- Issue
- Whether an agent under a power of attorney could name herself beneficiary, and whether a legatee could claim annuity proceeds
The owner of a variable annuity named his daughter as beneficiary. A few months before he died, he gave a relative a power of attorney, and she sent the insurer a form naming herself as the sole beneficiary. After his death, the insurer refused the form because the power of attorney did not allow the change, and the agent, the daughter and the person who inherited under his will all demanded the proceeds, and the insurer filed an interpleader.
We represented the daughter. The court held that Louisiana’s insurance code gives annuity proceeds to the lawful beneficiary, ahead of heirs and legatees, so the legatee’s claim failed. The agent’s claim failed as well. Louisiana law does not let an agent contract with herself unless the principal authorizes it, and the power of attorney barred her from transferring the owner’s assets to herself unless it said so specifically. A general power to make elections under a policy was not that kind of authorization.
The court granted partial summary judgment, and judgment was entered recognizing our client as the proper beneficiary.
What it shows. Broad language in a power of attorney does not by itself let an agent name herself beneficiary, and annuity proceeds payable to a named beneficiary pass outside the will.
Read the court's order
For a detailed legal summary of this decision, see interpleader.com's decisions library.
Past results do not guarantee a similar outcome. This summary describes the court's ruling; it is not legal advice about any other case.
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