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7^th Circuit Court of Appeals

Case Name: Lorrie Meier v. Pacific Life Insurance Company

Case No.: 22-1607

Officials: Flaum, Scudder, and St. Eve, Circuit Judges.

Focus: Insurance

Lorrie Meier sought to collect on a life insurance policy from Pacific Life Insurance Company following the death of her husband Ron. After applying for insurance—but before Pacific Life issued the policy—Ron learned he had terminal cancer. Pacific Life denied Lorrie’s claim for coverage because Ron failed to disclose the cancer diagnosis before the policy was issued. The district court agreed with Pacific Life and determined that Ron’s failure to inform Pacific Life of the diagnosis constituted a material misrepresentation allowing for recission of the policy.

The plain terms of Declaration 6 tell the court that changes in a potential insured’s health are important to Pacific Life. That Pacific Life requires applicants to communicate such diagnoses bolsters theconclusion that the diagnosis was material in this case.

Affirmed.

Decided 03/22/23

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