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GUY v. COMMONWEALTH LIFE INS. CO.

No. 88-4918.

894 F.2d 1407 (1990)

Thomas R. GUY, Administrator of the Estate of Vicki R. Guy, deceased, Plaintiff-Appellee, v. COMMONWEALTH LIFE INSURANCE COMPANY, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied February 28, 1990.

Attorney(s) appearing for the Case

Pauline Shuler Lewis, W.O. Luckett, and Michael T. Lewis, Clarksdale, Miss., for defendant-appellant.

Michael B. McMahan, Marcia C. McMahan, Hattiesburg, Miss., and Ballard & Lynchard, Hernando, Miss., for plaintiff-appellee.

Before GEE and JONES, Circuit Judges and HUNTER, District Judge.

EDITH H. JONES, Circuit Judge:

Commonwealth Life Insurance Company failed to pay Vicki Guy's medical expenses in connection with her gall bladder removal. After a non-jury trial, the district court entered judgment for $2,614.00 in compensatory damages and $141,000 in punitive damages for Commonwealth's "bad faith refusal" to pay Guy's claim. The material issues on appeal are whether Commonwealth could rescind Guy's medical policy ab initio for a material misrepresentation...

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