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SMITH v. AMERICAN GENERAL LIFE AND ACC. INS.

No. 02-2114.

337 F.3d 888 (2003)

Carolyn SMITH, Plaintiff-Appellant, v. AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY, INC., Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided July 24, 2003.

Rehearing Denied August 18, 2003.

Attorney(s) appearing for the Case

Gary D. McGaune (argued), Aurora, IL for plaintiff-appellant.

David J. Novotny (argued), Chittenden, Murday & Novotny, Chicago, IL, for defendant-appellee.

Before POSNER, KANNE, and DIANE P. WOOD, Circuit Judges.

DIANE P. WOOD, Circuit Judge.

Carolyn Smith purchased life insurance policies for her three children from an agent selling insurance door-to-door for American General Life and Accident Insurance Company. When one of her children died of complications from sickle cell anemia, American General refused to issue the full $15,000 benefit that Smith anticipated receiving on her policy. Instead Smith received $7,500 (a portion of this amount was paid directly to the funeral...

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