United States Eighth Circuit

In an action against a life insurer alleging breach of contract and bad faith after defendant rescinded an insurance policy and denied plaintiff's claim for benefits, summary judgment for defendant is affirmed where: 1) regardless of whether the contract explicitly stated that preexisting conditions will be considered, as a matter of the plain language of the contract, law and logic, plaintiff's false answer to a question was material; 2) defendant justifiably relied upon plaintiff's assertion that he had not been treated for a mental health issue within five years of his application for life insurance; and 3) a material misrepresentation on the insurance application was a reasonable basis for denial.

Appellate Information

• Decided 07/15/2010
• Published 07/15/2010

Judges

• Lavenski Smith

Court

• United States Eighth Circuit

Counsel