Insurer Can Keep Premium For Sham $5M Policy: 1st Circ.

Law360, New York (May 14, 2013, 3:11 PM EDT) -- In a published decision, the First Circuit found Monday that a Phoenix Cos. Inc. life insurer could rescind a $5 million policy and still keep the premium it received from a policyholder who pretended to be a well-to-do real estate investor to score the insurance.

The appeals court said it was only fair for PHL Variable Insurance Co. to hold on to the $192,000 premium payment as special damages because the amount would make the company whole again after it fell victim to a fraud scheme....
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