Paul S. Ranes, M.D. v. The Paul Revere Life Insurance Company

O’SCANNLAIN, Circuit Judge:

We must decide whether an insurer may be estopped from denying disability coverage for unreasonable delay in processing the insured’s application.

I

In January 1989, Paul Ranes, a surgeon living in Washington State, applied for disability insurance with Paul Revere Life Insurance Company. The application had two parts. Part I required general health and financial information, which Ranes completed on January 3. Part II was a medical form asking for more detailed health information. The application stated: “The insurance applied for will not take effect unless the…