Opinion ID: 78219
Heading Depth: 1
Heading Rank: 7

Heading: American General Was Entitled To Rescind the Policy.

Text: The beneficiaries argue that the district court erred when it granted summary judgment in favor of American General for three reasons. First, the beneficiaries argue that determining the materiality of Schoenthal's misrepresentations required that the district court consider the actual conduct of American General when it approved the Schoenthal policy. Second, the beneficiaries argue that genuine questions of material fact exist about the materiality of Schoenthal's misrepresentations. Third, the beneficiaries argue that the policy issued by American General requires for rescission actual reliance by the insurer on a material misrepresentation by the insured. These arguments fail. The first argument fails because the test for materiality under subsection 33-24-7(b)(2) is the objective standard of conduct of a prudent insurer, not a subjective standard about the actual conduct of American General. The second argument fails because the record establishes that Schoenthal's misrepresentations were objectively material. The third argument fails because subsection 33-24-7(b)(2) establishes an independent basis for rescission that is not limited by the language of the policy of American General.