Deramus v. Jackson National Life Insurance Company

In January 1988, Frank Deramus and his wife, Jody Deramus (plaintiff), applied for life-insurance policies with Jackson National Life Insurance Company (Jackson) (defendant). Frank and Jody underwent blood and urine tests in accord with Jackson’s policy requiring such tests and denying coverage to anyone testing positive for HIV. In April 1988, the laboratory that tested Jody and Frank informed Jackson that Frank had tested positive for HIV. Jackson sent Frank a letter informing him that his application was rejected but not that the reason was a positive HIV test. Two years later, Frank tested positive for HIV. In April 1991, when Frank’s condition had deteriorated, Frank sent a letter to Jackson asking that his 1988 test results be sent to his physician. Jackson sent the results, confirming that Frank had tested positive for HIV in 1988. Frank died several days later. Jody sued Jackson on her own behalf and on behalf of Frank’s estate (plaintiff) as administratrix, alleging that Jackson had breached its duty to her and to Frank to inform them or Frank’s physician of Frank’s HIV-positive test. Specifically, Jody argued that Jackson created a confidential relationship with Jody and Frank when they demanded and retained access to confidential medical results. Jody also maintained that by requiring Jody and Frank to submit to medical tests, Jackson had assumed a duty to act reasonably and with due care. Both Jody and Jackson submitted motions for summary judgment.