Solon purchased a life insurance policy with a guaranteed insurability option. Ten years later, when very sick, he tried to buy additional coverage, but his insurance company refused, claiming Solon was uninsurable. Was this correct?

Garcia and his mother applied for a $2 million insurance policy on her life from Old Line. She already had a similar policy from another company. On the application for the new policy, she indicated “yes” to the question whether the new policy “may” be used to replace the existing policy. In fact, Mrs. Garcia never replaced the old policy with the new one, and when she died, the insurance company refused to pay the proceeds, claiming a misrepresentation in the application. Was the insurance company correct? (Old Line Life Insurance Co. v. Garcia, 411 Fed.3d 605, amended 418 Fed.3d 546)

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