State Farm Mutual Automobile Insurance v. Lee

DYER, District Judge:

In this appeal, we are called upon to decide whether an insurer is precluded from rescinding a liability policy for a false and fraudulent representation, material to the risk, knowingly made in an application which was not attached to or made a part of the policy, because of the so-called integration clause and statements contained in the policy. The district court held against the insurer. We disagree and reverse.

Plaintiff State Farm’s complaint for declaratory relief alleged that in his application the insured, defendant Lee, was asked if he had any physical defect and…