Greer

I. Introduction

Appellant John Hancock Mutual Life Insurance Co. (Hancock) appeals after the trial court sustained a demurrer to its complaint against its insured, respondent Benjamin J. Greer, M.D. (Greer). Hancock’s complaint seeks rescission of its disability insurance policy issued to Greer six years earlier because of alleged material misrepresentations made by him in his application for insurance. The trial court granted Greer’s demurrer without leave to amend after concluding that the policy’s incontestability clause barred Hancock’s action.

The statutorily required incontestability clause which is at the center of this controversy provides: “After this policy has been in force for two years during your lifetime and during which you have not been disabled, we cannot contest any statements in the application which is attached to this policy on the Date of Issue.” (See Ins. Code, § 10350.2.) The sole issue in this appeal is whether the disability which tolls the running of the two-year contestability period refers to a disability as defined by the policy language, as Greer contends, or whether it encompasses all conditions that fall under the general dictionary…