"Vanishing" Defenses - Court of Appeal Holds That Adequacy of "Vanishing Premium" Disclaimer Language and Reasonable Reliance May Not Be Decided as a Matter of Law on Demurrer

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The California Court of Appeal (Second Appellate District, Division Seven) has ruled that the trial court erroneously sustained an insurance company’s demurrers to the plaintiffs’ complaint for fraud, negligent representation, and related statutory violations in connection with a so-called “vanishing premium” life insurance policy.

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