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SMITH v. NO. AMERICAN CO. FOR LIFE & HEALTH INS.

No. 84-1872.

775 F.2d 777 (1985)

Donna SMITH, individually and as the personal representative of the estate of Lane O. Smith, and Orval Smith, Plaintiffs-Appellants, v. NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided September 30, 1985.

Attorney(s) appearing for the Case

Arnold P. Anderson, Carroll, Parroni, Postlewaite, Anderson & Graham, Eau Claire, Wis., for plaintiffs-appellants.

Michael B. Van Sicklen, Foley & Lardner, Madison, Wis., for defendant-appellee.

Before BAUER and POSNER, Circuit Judges, and PECK, Senior Circuit Judge.

POSNER, Circuit Judge.

This appeal in a diversity case governed by the common law of Wisconsin requires us to consider an interesting problem in the law of insurance contracts. On June 25, 1982, Lane Smith, a successful businessman who was 41 years old, signed an application for a $100,000 life insurance policy to be issued by the North American Company for Life and Health Insurance, and executed a form indicating that he was not a smoker. He gave the insurance agent...

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