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Mutual Benefit Life Insurance Co. v. JMR Electronics Corp.
United States Court of Appeals for the Second Circuit
848 F.2d 30 (1988)
Based on the representation of the president of JMR Electronics Corporation (JMR) (defendant) that he had never smoked cigarettes, Mutual Benefit Life Insurance Company (Mutual) (plaintiff) issued a “key man” insurance policy insuring the president’s life at a discounted nonsmoker’s rate. After the president died, Mutual discovered that he was a longtime smoker. Mutual brought a diversity suit against JMR to void the policy. JMR contended that even had Mutual known the truth from the outset, Mutual would still have insured the president’s life, albeit at the smoker’s rate. The district court issued summary judgment for Mutual and ordered the contract’s rescission. JMR appealed to the Second Circuit.
Rule of Law
Holding and Reasoning (Per curiam)
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