Hawaiian Life Insurance Company, Ltd. v. Norma A. Laygo Jaime F. Laygo Charine A. Laygo Reynaldo A. Laygo Melanie A. Laygo Cheryl A. Laygo

The Laygos appeal two summary judgments granted to Hawaiian Life Insurance Company (Hawaiian Life), the first allowing Hawaiian Life to rescind a policy issued to Norma Laygo because of material misrepresentations on her insurance application and the second dismissing the Laygos’ counterclaim against Hawaiian Life.

The district court held that Mrs. Laygo misrepresented her medical history and omitted reference to cobalt treatments for cancer. The district court also held that Hawaiian Life was entitled to rescind the life insurance contract because Laygo’s misrepresentations and omissions materially affected Hawaiian Life’s decision to issue the policy.

We reverse because there are material issues of fact concerning how the application form was filled out, and whether Laygo and/or the insurance agent did in fact misrepresent material facts. Material issues of fact also exist concerning Laygo’s knowledge of her cancerous condition, and concerning her conversation with Dr. Carbonel, Hawaiian Life’s examining physician.

FACTUAL BACKGROUND

In July of 1983, Laygo underwent a thy-roidectomy in the Philippines. The parties dispute whether Laygo actually understood that she had…