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Johnson & Bell Shareholder, William K. McVisk, obtained summary judgment for a major fixed annuity and life insurance company, rescinding a life insurance policy due to misrepresentations in the application for coverage.  The insured applied for life insurance in November 2003, and the policy issued in January 2004.  The insured died in April, 2004.  In its investigation, our client determined that the insured had misrepresented his health status on the application, failing to disclose that he had a seizure disorder, was taking medications for seizures, and was receiving disability benefits due to his seizures.  Also, before the policy issued, the insured was hospitalized for a suspicious tumor, which turned out to be cancer, but the insured failed to report this to the insurer.  The insurance company refused to pay the loss, and rescinded the policy.  Nearly ten years later, the decedent’s family sued to recover under the policy.  After discovery, our client moved for summary judgment, arguing that under section 154 of the Illinois Insurance Code, the insurance company was entitled to rescind the policy because of the insured’s misrepresentations in the application for the policy and due to the insured’s failure to disclose his suspicious tumor before the policy issued. After briefing and argument, the court granted summary judgment for our client, holding that the policy was properly rescinded, and the insurance company was not obligated to pay anything on the policy.

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