A. Lee Petersen v. Mutual Life Insurance

This case involves a $100,000 life insurance policy issued by Mutual Life Insurance Company of New York (MONY) on November 30, 1983, to A. Lee Petersen, on the life of his business associate Edward Burke. Burke died of a ruptured aorta on May 23, 1984. Soon after Burkes death, Petersen submitted a request for payment to MONY. On September 13, 1984, MONY notified Petersen that his claim was denied because, according to its investigation, Burke had failed to disclose in the policy application that: 1) he had been treated for a self-inflicted wrist wound; 2) he had been a member of the Alcoholics Anonymous treatment program; and 3) he had been treated for chest pains.