Hubert D. Gallagher v. New England Mutual…

Summary

The Supreme Court of New Jersey affirmed the lower courts' judgment rescinding two term life insurance policies, holding that the insurer had no duty to conduct further inquiry when its independent investigation did not disclose the falsity of the applicant's misrepresentations and the insurer did not rely on those misrepresentations. The court relied on the John Hancock v. Cronin rule and rejected the insurer's arguments concerning actual knowledge, laches, and the retail credit report.