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She has no basis for a lawsuit. If he was named as the sole beneficiary he has no obligation to share the payments with anyone else.
I hope this information is helpful.
Do you mean this Rule 11:
RULE 11. AGREEMENTS TO BE IN WRITING
Unless otherwise provided in these rules, no agreement between attorneys or parties touching any suit pending will be enforced unless it be in writing, signed and filed with the papers as part of the record, or unless it be made in open court and entered of record.
Did your husband ever agree in writing to share the money with his sister?