Oregon National Life Insurance Co. v. Superior School Photo Service, Inc.

The beneficiary of a life insurance policy appeals from a summary judgment in favor of the insurance company. We hold that under Washington law questions of fact remained in the case, and that the entry of summary judgment under Fed.R.Civ.P. 56 was error.

Oregon National Life Insurance Company (Oregon) sought a declaratory judgment to invalidate a life insurance policy which it had issued on the life of Thomas Taylor. Taylor died of coronary artery disease some ten months after the policy was issued.

Taylor had signed a medical-examination report form in which his doctor had cheeked “no” after a question: “Have you had any indication or diagnosis of coronary artery disease, chest pain or discomfort.” His business associates subsequently purchased the two f50,000.-00 policies of insurance here in question.

In 1965, Taylor had been examined for chest pains by a Dr. Herman Behla, who had referred him to a Dr. Avery Nelson for electrocardiagrams. Both doctors gave affidavits in this litigation saying that they had informed Taylor that he had a coronary heart problem.

In 1967, Oregon submitted Taylor’s name to the Medical Information Bureau (MIB), an insurance-industry clearing…