A federal appeals court on Wednesday reversed a verdict for Metropolitan Life Insurance Co, ruling that the company owed a California nurse the full amount of a life insurance policy she took out on her husband.
A unanimous three-judge panel of the 9th U.S. Circuit Court of Appeals ruled that MetLife must pay Susan Salyers the entire $250,000 policy even though she did not submit evidence of insurability as required under her employer’s benefits plan. MetLife waived that requirement by not asking for a statement of health while accepting her premium payments, the panel said.
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