Kay (Rebecca Miller) is not really dead. Eddy (Kevin Spacey) had hired a woman who resembled Kay to sleep with Richard (Kevin Kline), and then he killed her and had Richard framed for it as part of a scam to get $1.5 million through a double indemnity claim from his insurance company.
With help from private investigator David Duttonville (Forest Whitaker), who was hired by three insurance companies to look into Eddy’s claim, Richard finds Kay. She tells him that she didn’t know that Eddy did what he did until he told her the day after, and though she was guilt-ridden over having ultimately gone along with his scheme, she won’t testify against him because he warned her that if she said anything to anyone about what he did, he would say that she had known about it from the start. Soon after, Eddy who had earlier realized that Richard was on to him kills her for real and frames Richard for this murder as well, but Richard gets away before the cops can catch him.
The following night, Priscilla (Mary Elizabeth Mastrantonio) who divorced Richard after the first murder and entered into a live-in relationship with Eddy finds out about Eddy’s true character, but Eddy had anticipated her finding out and holds her hostage in their home. Richard, who has already snuck onto their property, eventually gets into the house, where a gun-toting Eddy awaits him in the upstairs bedroom. Eddy whispers to Priscilla whom he is keeping face-down on the bed that he wanted Richard to come here, and he plans to kill him and then her and get off the hook by saying that Richard killed her and then he killed Richard as a homicidal intruder.
Though Eddy had planned to take Richard by surprise, Richard ends up surprising him instead, and in the subsequent fight, Priscilla kills Eddy with a baseball bat, the same murder weapon that he had used on the imposter Kay and the real Kay.
Months later, Richard is cleared of all charges, and he and Priscilla have remarried. They are last shown moving into a new home in a very secluded area, with no neighbors around for miles.
Thanks Tornado Dragon!