Gloria L. Schrader v. Prudential Insurance Company of America

WISDOM, Circuit Judge.

This is an action on a life insurance policy. 1 The plaintiff-appellant, Gloria L. Schrader, is the beneficiary of the policy and the widow of the insured, Richard M. Schrader. Schrader acted in a dual capacity: he was both the insured and the agent writing the policy; he received his agent’s commission for the sale of the policy. The insurer, the Prudential Insurance Company of America, cancelled the policy and refused payment on the ground that the insured made fraudulent, material representations in the application for insurance. The principal question presented on…