Pitts ex rel. Pitts v. American Security Life Insurance

DUHÉ, Circuit Judge.

American Security Life Insurance Company contends that the district court erred in holding it liable for the payment of benefits to Gregory Pitts under a group employee insurance policy. It claims that the policy was void ab initio because the employer made material misrepresentations that prevented the formation of a valid contract. We affirm.

Kenneth T. McKenzie was the founder and sole proprietor of a plumbing business. Later he included his two sons, Patrick L. McKenzie and Kenneth D. McKenzie, as partners in the business. In addition, he employed his sister, Diane…