TIPP CITY — A life insurance company is asking a federal court to help decide who will be the beneficiaries of a $100,000 life insurance payout following the murder of Ashley Flynn.
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The civil complaint, submitted in the U.S. District Court for the Southern District of Ohio, comes after Flynn’s husband, Caleb Flynn, was convicted of her murder.
This focuses on a $100,000 term policy issued in March 2016 that listed Caleb as the owner and primary beneficiary.
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Under Ohio’s slayer statute, individuals convicted of murder are legally barred from receiving life insurance benefits from the victim’s death.
Because standard policy language would otherwise default unpaid funds back to the policy owner or his estate, Banner Life Insurance Company told the court that conflicting claims among surviving family members created a real risk of multiple lawsuits, prompting the insurer to surrender the money to the court.
Four days after the murder, on Feb. 20, 2026, Ashley’s sister provided formal notice of the death to Banner Life Insurance Company and indicated her intention to claim the proceeds.
Kayla Keyt and her husband, Matthew Keyt, were named co-interim emergency custodians of Ashley and Caleb’s two children.
Kayla has also applied to serve as the administrator of Ashley’s estate.
The complaint further names Ashley’s parents as defendants holding potential claims.
The lawsuit also names several relatives of Caleb who could claim entitlement to the funds.
Along with the complaint, Banner Life Insurance Company filed a formal motion for leave to deposit the $100,000 directly with the clerk of the court.
The company asked the federal court to issue an order permanently enjoining all named defendants from initiating or prosecuting any future claims or lawsuits against Banner concerning the policy or Ashley’s death.
Banner also asked the court to enter a judgment confirming that the company has acted in good faith, dismiss the insurer from the action with prejudice, and award it reasonable attorney’s fees and court costs to be deducted from the deposited funds.
The U.S. District Court will review Banner Life Insurance Company’s motion for leave to deposit the policy proceeds with the clerk of court.
If the court grants interpleader relief, the named family members and estate representatives will be required to litigate their competing claims to the $100,000 directly among themselves.
FULL CALEB FLYNN MURDER TRIAL COVERAGE:
JURY SELECTION: Prosecutors, Defense continue questioning to seat jury in Caleb Flynn murder trial
DAY 2 OF TRIAL: Prosecutors say over 100k of texts part of evidence in Caleb Flynn Murder Trial
DAY 3 OF TRIAL: Law enforcement, coroner’s office testify in Caleb Flynn murder trial
DAY 4 OF TRIAL: Ashley Flynn’s family testifies on Day 4 of Caleb Flynn murder trial
DAY 5 OF TRIAL: Caleb Flynn’s mistress testifies during Day 5 of murder trial
DAY 6 OF TRIAL: Mistress of Caleb Flynn continues testimony on Day 6 of Murder Trial
DAY 8 OF TRIAL: State, defense rests case in Caleb Flynn murder trial
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