N.C.P.I.—Civil 880.30

NOTE WELL: This issue assumes that the jury has

already concluded that a false representation was

made. If more than one alleged misrepresentation is

involved, it may be helpful to describe the alleged

misrepresentations or to refer, by number, to separate

falsity issues. See Cato v. Hospital Care Ass'n, 220

N.C. 479, 484, 17 S.E.2d 671, 674 (1941). Only the

appropriate bracketed paragraphs should be used.2

The (state number) issue reads:

"Was (Were) the false answer(s) inserted by the agent without the

knowledge of the applicant?"

On this issue the burden of proof is on the [plaintiff] [defendant].

This means that the [plaintiff] [defendant] must prove, by the greater

weight of the evidence, that the company's agent, and not the applicant,

was responsible for the false answer(s), and that the applicant acted in

good faith, and did not know or have reason to know, that the agent was

making such (a) false answer(s).

The law provides that where an agent for an insurance company has

incorrectly filled in an application, the applicant is not responsible for any

false answer(s) inserted by the agent if the applicant is justifiably

ignorant of the false answer(s) and has no actual or implied knowledge of

the falsity of the answer(s).3 The applicant is justified in not knowing

the answer(s) [was] [were] false if he has acted in good faith in reliance

on the agent and has no actual or implied knowledge of the falsity of the

answer(s). If, however, the applicant knows or should have known that

the agent was not reporting important facts, or was reporting false facts

to the company, or if the applicant was not acting in good faith, or if he

was acting in collusion with the agent, the company is not prevented

from [denying liability] [rescinding the contract] because of the false

answer(s).

(1) [Thus, where the agent has the applicant sign the application

before asking questions of the applicant, the agent thereafter fills in the

answer(s) without asking the questions, and the applicant does not know

or have reason to know that the answer(s) filled in by the agent [was]

[were] false, the company cannot [deny liability] [rescind the contract]

because of the falsity of the answer(s).]4

(2) [Thus, where the agent has the applicant sign the application

before asking questions of the applicant, the applicant truthfully answers

the question(s), and the agent incorrectly records the answer(s), and the

applicant, acting in good faith, does not know or have reason to know

that the agent did not truthfully report the answer(s), the company

cannot [deny liability] [rescind the contract] because of the falsity of the

answer(s).]5

(3) [Where an agent has incorrectly filled in an application and the

applicant thereafter signs it, the applicant is responsible for any false

answer(s) inserted by the agent unless the applicant was justifiably

ignorant of the untrue answer(s) and had no actual or implied knowledge

of the untrue answer(s). The applicant is justified in not determining

that the answer(s) [was] [were] false if he has acted in good faith in

reliance on the agent and has no actual or implied knowledge of the false

answer(s).]6

Finally, as to this (state number) issue on which the [plaintiff]

[defendant] has the burden of proof, if you find, by the greater weight of

the evidence, that the company's agent, and not the applicant, was

responsible for the false answer(s) and that the applicant acted in good

faith and did not know or have reason to know that the agent was making

such false answer

(s), then it would be your duty to answer this issue "Yes" in favor of the

[plaintiff] [defendant]. If, on the other hand, you fail to so find, then it

would be your duty to answer this issue "No" in favor of the [plaintiff]

[defendant].7