DISCLAIMER: Any unofficial case summaries below are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
133255P.pdf 04/09/2015 PHL Variable Insurance Company v. Midas Life Settlements LLC
U.S. Court of Appeals Case No: 13-3255
U.S. District Court for the District of Minnesota - Minneapolis
[PUBLISHED] [Shepherd, Author, with Loken and Colloton, Circuit Judges]
Civil case - Insurance. In action to rescind a $10 million life-insurance
policy, the district court did not err in rescinding the policy as it was
obtained through gross, material misrepresentations of the insured's worth
and income; where the insured simply signed a blank policy application
without supplying any truthful answers, Minnesota courts would not apply
their "Pomerenke rule" which provides coverage when the insured provided
truthful information and the insurer's agent recorded incorrect
information; Minnesota law did not impose a duty on the insurer to
reasonably investigate the policy application, and the insurer is not
equitably estopped from rescinding the policy.