Pawelczyk V. Allied Life Insurance Co‪.‬

The plaintiff, Walter Pawelczyk (Pawelczyk), appellant, applied for $50,000 worth of life insurance, to be issued by appellee, Allied Life Insurance Company (Allied). The application contained a provision which stated in part that the insurance would take effect only if and when the application was approved by Allied at its home office. Pawelczyk submitted to a medical examination and paid the first premium, but the application was not acted upon prior to the time that he suffered a serious heart attack. The application was subsequently rejected and appellants commenced this action to have the policy declared in effect and for punitive damages. Appellants contend that under the circumstances, Allied was under a duty to approve the application or, alternatively, that it is estopped to deny coverage. The trial court in the summary judgment here on appeal sustained Allied's position that it acted within its rights in rejecting the application.