Thomas R. Guy, Administrator of the Estate of Vicki R. Guy, Deceased v. Commonwealth Life Insurance Company

EDITH H. JONES, Circuit Judge:

Commonwealth Life Insurance Company failed to pay Vicki Guy’s medical expenses in connection with her gall bladder removal. After a non-jury trial, the district court entered judgment for $2,614.00 in compensatory damages and $141,000 in punitive damages for Commonwealth’s “bad faith refusal” to pay Guy’s claim. The material issues on appeal are whether Commonwealth could rescind Guy’s medical policy ab initio for a material misrepresentation on the policy application, and whether the bad faith refusal to pay the claim is sup ported in the evidence. 2 We affirm…