United States District Court, M.D. Tennessee, Nashville Division
PAUL A. IANNELLO, Plaintiff,
AMERICAN GENERAL LIFE INSURANCE COMPANY, Defendant.
WAVERLY D. CRENSHAW, JR. CHIEF UNITED STATES DISTRICT JUDGE
an action for recision and breach of contract brought by Paul
A. Iannello (“Iannello”) against American General
Life Insurance Company (“American General”).
American General has filed a Motion for Summary Judgment
(Doc. No. 33), that motion has been fully briefed by the
parties (Doc. Nos. 33-7, 37-4 & 39). Summary judgment
will be denied.
General's Motion for Summary Judgment is based upon the
following undisputed facts:
more than two decades, Iannello has owned and/or operated
several businesses, most recently serving as the Chief
Executive Officer of Torq-Comm., Inc. He has entered into
several contracts on behalf of his companies, and understands
that agreements govern the terms of a relationship between
the years, Iannello has invested in businesses, mutual funds,
and the stock market. He also sold term life insurance for
two years early in his career.
application was submitted by Iannello on January 23, 2015 for
a life insurance policy issued by American General. The
initial premium was listed $250, 000, and Iannello paid that
Immediately above the signature line, the application form
I agree that no agent of the Company [American General] . . .
. has authority to waive any answer or otherwise modify this
application or bind the Company in any way by making any
promise or representation which is not set out in writing in
(Doc. No. 33-2 at 68).
Iannello received policy illustrations from American General.
Iannello signed one policy illustration dated April 13, 2015,
and his “bitmap” signature (which he agrees has
the same effect as an actual signature) appears on a policy
illustration dated March 10, 2015. Both provided:
BY SIGNING THIS FORM, YOU ACKNOWLEDGE THAT YOU HAVE READ (OR
HAVE HAD READ TO YOU), UNDERSTAND, AND AGREE TO THE FOLLOWING
1. Life Insurance is not an investment. I am purchasing an
Indexed Universal Life Insurance Policy because I have a long
term need for permanent life insurance.
(Doc. No. 33-3 at 40).
April 13, 2015 policy illustration indicates that, at the end
of the first year, the cash surrender value of the policy
would be $135, 884, and Iannello admits that, had he reviewed
the illustration, he would have realized that this was the
cash surrender value.
Iannello received a policy issued May 20, 2015 from American
General. The first page of the policy states that it is an
“Individual Fixed Index Interest Flexible Premium
Adjustable Life Insurance Policy.” That page also
provides the following “NOTICE OF RIGHT TO EXAMINE
You may return this Policy within twenty days after delivery
if You are not satisfied with it for any reason. This Policy
may be returned to Us or the agent through whom it was
purchased. Upon surrender of this Policy within the twenty
day period, it will be ...