William Penn Life Insurance Company of New York v. James Sands

KRAVITCH, Circuit Judge:

In completing a life insurance application, appellant Anthony Pellegrino 1 truthfully and accurately denied, “to the best of [his] knowledge and belief,” having cancer or a blood disorder. The district court granted the plaintiff insurance company’s motion to rescind the policy because, unbeknownst to Pellegrino, he did in fact suffer from both medical conditions. We vacate the district court’s grant of summary judgment because Pellegrino’s truthful response to a question based on his “knowledge and belief” cannot be considered a misstatement or misrepresentation in an…