Penn Mutual Life Insurance v. Oglesby

VEASEY, Chief Justice:

In this certified question proceeding, we answer the substance of questions of Delaware law on insurance coverage posed to us by the certifying court. We hold that an insurer that does not take advantage of a fraudulent misstatement exclusion in a disability insurance contract, where such exclusion is permissible under applicable Delaware statutes, may not avoid coverage on that ground. In addition, we hold that, where the insurance policy contains one provision that would deny coverage, but makes that provision “subject to” others that could be construed to permit…