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McGee v. International Life

From lawbrain.com

McGee v International Life Ins., 355 U S 220 (1957) is a civil procedure case which held that a California suit based on insurance contract issued by foreign corporations to residents of California has substantial connection with that state sufficient to meet requirements of due process.

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Contents

Summary of Case Facts

Franklin, a California resident, purchased life insurance policy from International Life Ins. Franklin paid premiums from California to International Life Ins. office in Texas. When McGee (Beneficiary) notified International Life Ins. of Franklin’s death, it refused to pay claiming he committed suicide. McGee brings suit in California. International Life Ins. never solicited or done any insurance business in California.

Issue

Whether California has jurisdiction over International Life Ins.

Holding and Law

Yes. A California suit based on insurance contract issued by foreign corporations to residents of California has substantial connection with that state sufficient to meet requirements of due process. The Contract was delivered to California, the premiums were mailed from California, and the insured was a resident of California when he died. California residents would be at a disadvantage if they were forced to follow the insurance company to a distant state in order to hold it legally accountable.

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