Child's dad died. We were beneficiaries of his insurance Co

Insurance structured settlement payments. But he went for a loan once pending court approval (CA). It was denied.. no effective agreements allowed. But they submitted and changed his beneficiary from that agreement. The insurance company states they do this all the time. The contract he signed states no effective agreements with out court approval.
How can they use this? Is this fraud? Or a simple mistake? How can it be corrected. they used s stamp and a mispelled name.
I am sb_cheek@yahoo.com