By TERRY SCHERMERHORN in Los Angeles and CLEMENTE LISI in New York

Heath Ledger’s insurance company has refused to pay on his $10 million policy by claiming he died under “suspicious” circumstances – and now wants to quiz his friend Mary-Kate Olsen over his death, a lawsuit filed by the “Dark Knight” star’s estate charges.

Lawyer John LaViolette, who represents the trust set up for Ledger’s 2-year-old daughter, Matilda, has sued ReliaStar Life Insurance Co., accusing it of acting in bad faith by trying to avoid paying the claim and wrongfully snooping into the actor’s life.

The city medical examiner ruled that the 28-year-old “Brokeback Mountain” star died of an accidental overdose of prescription drugs – but probers working for ReliaStar are investigating the possibility he took his own life, which would void the claim.

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NEW YORK – Federal prosecutors have decided not to pursue a possible criminal case into how Heath Ledger obtained the powerful painkillers that contributed to his overdose earlier this year, a law enforcement official Wednesday.

Prosecutors in the U.S. Attorney’s office in Manhattanhad been overseeing a Drug Enforcement Administrationprobe into whether the painkillers found in Ledger’s system were obtained illegally. But the prosecutors have opted to bow out “because they don’t believe there’s a viable target,” said the official, who spoke on condition of anonymity because no charges have been filed.

The decision comes in the wake of recent reports that actress Mary-Kate Olsen was demanding immunity before answering questions about the startling death of her close friend and his drug use. Authorities say she was the first person called by a masseuse who found the 28-year-old “Dark Knight” actor’s lifeless body in his Manhattan apartment.

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