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The Assembly of Good Faith requires that insured persons honestly report their state of health when applying for life insurance



Howard Tenzer (Howard) appealed the district court's summary judgment in favor of Minnesota Life Insurance (Minnesota Life) Howard Tenzer, Legal Guardian on behalf of A.T. v. Minnesota Life Insurance Company, United States Court of Appeals for The Ninth Circuit (October 21, 2020) and sought revocation.

FACTS

All Howard's claims stem from Minnesota Life's termination of an insurance contract with Howard's brother, Mark Tenzer (Mark).

Revocation of a life insurance contract under Nevada law is legal when a presumed insured made material errors to the insurer, or when an insurer would not have issued the insurance, or would have issued the insurance on other terms, had the presumed insured provided information correctly. The significance of erroneous representations is only subject to a summary assessment where reasonable senses can not differ from each other and if materiality is determined by law.

Mark made a number of health-related errors in his life insurance application. He failed to reveal his history of exogenous steroid use, sleep apnea, stomach problems, doctor visits, surgery and diagnostic tests. Minnesota Life's insurer, John Helberg, testified in a sworn statement and at his deposit that Mark's inaccuracies were significant to the risk that Minnesota Life would take and that, given accurate health information, Minnesota Life would have rejected Mark's application.

DISCUSSION

Howard did not offer evidence to disprove Helberg's sworn testimony. Seeing the evidence in the light that is most favorable to Howard, the Ninth Circuit concluded that revocation was legally correct because reasonable minds could not differ if Mark's misrepresentations were material. It was no problem that Minnesota Life would not have issued the same policy with accurate information.

Furthermore, the district court held that Minnesota Life did not waive its right to revoke Mark's policy. Under Nevada law, an insurance company waives its right of cancellation if the insurer, before issuing an insurance policy, already has "complete information" about the misrepresentations that it later trusts to justify cancellation of the policy.

The insurer had the right to rely on Mark's representations. Howard provided no authority for the claim that Nevada law imposes a confirmatory obligation to investigate further rather than rely on the petitions in the application.

Since Minnesota Life had the right to cancel Mark's life insurance, it cannot be held liable for violating this. politics because, by recall, politics never existed. When an insurer has a legal right to cancel an insurance policy, no insurance contract can occur and no bad faith can be established.

Finally, the district court issued the correct summary judgment on the alleged violations of Nevada's injustice. Claims Practices Act, which is not supported by any evidence and which has no value at all.

In his brief, concise and easy-to-understand view, Ninth Circuit stated that it is not worthwhile to lie to an insurance company from which you seek insurance. The fact that the accused did several, material, incorrect information in the application, the insurer had every right to withdraw. It was contagious for Howard to sue for bad faith and appeal when he even admitted that Mark lied on the application and had no evidence to contradict testimony from the insurer Helberg, who stated that the insurer would have refused the insurance if it had heard the truth. Helberg and the insurer had the right to rely on Mark's good faith when he applied and was not obliged to examine the application to refute the representations before issuing the policy.


© 2020 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to working as an insurance consultant specializing in insurance coverage, handling insurance claims, insurance claims and insurance fraud almost equal for insurers . He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.

For the past 52 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insured.

https://zalma.com/zalmas-insurance-fraud-letter-2/ Last read two issues of ZIFL here.

Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921 [1965655] Read posts from Barry Zalma at https://parler.com/ profile / Zalma / inlägg

Listen to the podcast: Zalma om försäkring https://anchor.fm/dashboard/episodesZalma om försäkring

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