Mike Garde, A/K/A Michael Garde, and James Garde v. Inter-Ocean Insurance Company, a Foreign Corporation

WILL, Senior District Judge.

The Facts

The plaintiffs are the named beneficiaries in a $100,000 life insurance policy application on the life of Joseph Garde, a resident of Jacksonville, Illinois. The defendant, Inter-Ocean Insurance Company (“IOI”), did not issue a policy to Garde but its agent gave him a conditional receipt. Garde’s application was made on February 2, 1983 following discussions with James Harold Long, an IOI agent.

Garde died on February 25, 1983 by drowning on his farm which was ruled accidental. On or about March 22, 1983, IOI began receiving reports that within six months…