Rescind And Retain? More Like Rescind And Refund

Law360, New York (April 3, 2012, 12:49 PM EDT) -- A common strategy in rescission cases where life insurance carriers are primarily litigating with market investors is for the carrier to seek to retain all premiums as an offset to damages it has allegedly sustained. The first federal appellate court to reject the carrier position recently issued its decision in PHL Variable Ins. Co v. Jolly, No. 11-12188 (11th Cir. Mar. 14, 2012).

Applying Georgia law, the U.S. Court of Appeals for the Eleventh Circuit held that PHL Variable Insurance Co. could not both rescind a...
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