Cobb v. Pacific Mutual Life Insurance Co.
Court of Appeals of California
51 P.2d 84 (1935)
Cobb (plaintiff) held a disability income policy with Pacific Mutual (defendant) promising $250 monthly payments if he became permanently disabled; when Cobb became disabled and demanded payment, Pacific Mutual repudiated the policy, claiming Cobb had made misrepresentations to its medical examiner years earlier. At trial, Cobb's disability was confirmed and the misrepresentations were found insignificant; the jury and trial court awarded Cobb not just his overdue payments but a lump sum covering $250 monthly for his entire 15-year expected lifespan, totaling over $30,000, and Pacific Mutual appealed.
Whether an insurer's repudiation of an insurance contract constitutes anticipatory breach of contract with respect to future payments owed to the insured.