MURPHY, Circuit Judge.
I. INTRODUCTION
West Coast Life Insurance Company ("WCLI") brought suit in federal district court seeking rescission of an insurance policy based upon an alleged misrepresentation by Stephen Butts. Butts, who participated in heli-skiing on numerous occasions, stated in his insurance application that he did not engage in any hazardous activities. Butts's estate and intended beneficiaries asserted counterclaims against WCLI alleging...
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