O'CONNELL v. SAV. BANK


51 N.Y.2d 524 (1980)

Janet O'Connell, Respondent, v. Eastern Savings Bank, Appellant.

Court of Appeals of the State of New York.

Decided December 22, 1980.


Attorney(s) appearing for the Case

William E. Kelly and Gerald E. Singleton for appellant.

John J. Donohue for respondent.

Judges JASEN, WACHTLER and MEYER concur with Judge JONES; Judge GABRIELLI dissents and votes to affirm in a separate opinion in which Chief Judge COOKE and Judge FUCHSBERG concur.


JONES, J.

Inasmuch as the statute vests exclusive authority to approve the issuance of savings bank life insurance policies in the Savings Bank Life Insurance Fund, a defense to payment under such a policy based on a material misrepresentation as to the applicant's health made in the application is not vitiated by proof that an officer of the savings bank to which the application was addressed had knowledge of...

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