Lauer v. American Family Life Insurance Co.

Plaintiff, Marilyn Lauer, the beneficiary under her husband’s life insurance policy, filed a two-count complaint seeking a declaratory judgment that the policy was incontestable at the time of her husband’s death (count I) and alleging defendant, American Family Life Insurance Company, breached the contract by fading to pay death benefits under the policy (count II). The circuit court dismissed count I pursuant to section 2—615 of the Code of Civil Procedure (725 ILCS 5/2—615 (West 1998)), explaining that based upon the contract and the law, the two-year contestability period commenced on the…