New England Mutual Life Insurance v. Caruso

OPINION OF THE COURT

Simons, J.

Plaintiff insurer instituted this action against its policyholder, seeking a declaration that it is not obligated to pay $1.1 million in life insurance benefits because defendant had no insurable interest in the life of the decedent (see, Insurance Law § 3205 [b] [2]). Defendant contends that plaintiff is barred from asserting the invalidity of the policy because the statutory incontestability period expired before the insured died (see, Insurance Law § 3203 [a] [3]). The issue presented is whether the provisions of the incontestability clause may operate to bar…