ÿWPCØ …# VU>a %Ÿ 0(¥4Íáw@ð 0l0 0Dœ à 0Jè 0T2 0^† 0hä 0rL 0|¾ 0†: 0À 1uP U,Å 0dñ U,UU 6B)·DCà AM# BpU* D3·!ê—  0@¢v~âvÓ` AO3Æ‚ 0DH D/Œ B»˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 <èÀ( 9Z &Courier RegularX($¡¡Gav x°°3|xN <=D>?D@ABUCDDÓ€N((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(Courier New% Line 7 d%%%%7Border 1dd€-&Cþÿ << Gÿÿ d< Œ 9p`(Arial(((('ÿÿdxd Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€$ÔÝ  ÝÔ€)ÔÔ€)ÔÓ  Óò òÔ YYY ÔFILEDÔ€)XÔÌÌJune€7,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€$ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€$ôÔòòHumpston€v.€State€Mut.€Lifeò òóó,€ó ó256€S.W.€438,€431€(1923);ò ò€òòó óUnion€CentralÏLife€Ins..€v.€Foxóó,€61€S.W.€62€(Tenn.€1901);€òòNatl.€Burial€Life€Ins..€Co.€v.ÏEvansóó,€347€S.W.2d€34€(Tenn.€1961).€Ì("ÿÿ$££Ò  ÒÒ  ÒPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€##X„d&ÓÑ#€##Xd#ÑÔ€$ÔÝ  ÝÓ ` Ü‚Xœ ’X ÓÑ\R AØ'\ÑÑ7€IXdÈdÈ7ÑÑ  ÑKRZYSZTOF›€KRAKOWIAK,à à)Ìà àà à)ÌÓ#` Ü‚Xœôx‘X#Óà àPlaintiff/Appellant,à à)à àAppeal€No.Ìà àà à)à à01„A„01„9511„CH„00541Ìv.à àà à)Ìà àà à)à àDavidson€ChanceryÌÙ€€ÙœßL€'+&;+'h|5º` ç `€€Lß›THE€PAUL€REVERE€LIFEà à)à àNo.€95„429„IÌINSURANCE€COMPANY,à à)Ìà àà à)Ìà àDefendant/Appellee.à à)ÌÌÌÌÓ  ÓÔ€$¼ÔCOURT€OF€APPEALS€OF€TENNESSEEÌÌMIDDLE€SECTION€AT€NASHVILLEÌÌÌAPPEAL€FROM€THE€CHANCERY€COURT€FOR€DAVIDSON€COUNTYÌÌAT€NASHVILLE,€TENNESSEEÌÌÌTHE€HONORABLE€IRVIN€H.€KILCREASE,€JR.,€CHANCELLORÌÓ ` Ü‚XœÈ“X ÓÌÌÓ  ÓÌÌÔ€$XÔAUGUST€C.€WINTERÌTwo€Brentwood€Commons,€Suite€150Ì750€Old€Hickory€BoulevardÌBrentwood,€Tennessee€€37027Ìà àATTORNEY€FOR€PLAINTIFF/APPELLANTÌÌÌÌLUIS€C.€BUSTAMANTEÌJ.€FORD€LITTLEÌWoolf,€McClane,€Bright,€AllenÌ€€&€CarpenterÌ900€S.€Gay€Street,€Suite€900ÌP.€O.€Box€900ÌKnoxville,€Tennessee€€37901„0900Ìà àATTORNEYS€FOR€DEFENDANT/APPELLEEÌÌÌÌÌÌÌÌÌÓ  ÓœAFFIRMED€AND€REMANDED›ÌÌÌÌÌÌÌÌÌÌÌÓ  ÓÔ€$¼ÔSAMUEL€L.€LEWIS,€JUDGEÌÓ  ÓÓÓòòÔ€$°ÔOÔ€$¼Ô€P€I€N€I€O€NÌÓ  ÓÓ#` Ü` ä œÈ“X#ÓóóÔ€$XÔà àPlaintiff€Krzysztof€Krakowiak€appeals€from€the€trialÏcourtððs€judgment€granting€œthe€defendant,›€The€Paul€Revere€LifeÏInsurance€œCompany›€("Paul€Revere")€œhis€motion›€for€summary€œjudgment,›Ïand€the€failure€of€the€trial€court€to€grant€œits›€œmotion€for€partialÏsummary€judgment.›ÌÌà àThe€facts€are€not€disputed.€€Plaintiff€submitted€anÏapplication€for€disability€insurance€to€Paul€Revere.€€At€the€timeÏhe€submitted€his€application€he€was€able€to€fully€perform€hisÏduties.ÌÌà àPlaintiff€had€been€diagnosed€as€HIV€positive;€however,€heÏdid€not€disclose€the€fact€that€he€had€been€diagnosed€and€treatedÏfor€HIV€in€his€application.€€Plaintiff€falsely€stated€that€he€hadÏnot,€in€the€preceding€five€years,€received€medical€œadvice›€orÏtreatment.€ÌÌà àPaul€Revere€accepted€plaintiffððs€application€and€issued€aÏdisability€insurance€policy€dated€1€October€1989.€€Nothing€in€theÏpolicy€excludes€coverage€for€illness€due€to€HIV€or€œAIDS.›€€TheÏmaterial€provisions€of€the€policy€are€as€follows:ÌÓ,"` Ü` ä ҜȂX(#X,ÓÓÓà8 à1.6à8 à"Sickness"€means€sickness€or€diseaseÏwhich€first€manifests€itself€after€theÏDate€of€Issue€and€while€Your€Policy€isÏin€force.Ìà8 à1.15à8 à"Pre„existing€Condition"€means€aÏSickness€or€physical€condition€forÏwhich,€prior€to€the€Date€of€Issue:ÌÓ/%` Ü` ä Ò”œÈ (#X/Óà àà àa.à8 àSymptoms€existed€that€wouldÏcause€an€ordinarily€prudentÏperson€to€seek€diagnosis,Ïcare,€or€treatment;€orÌÓ,"` Ü` ä ҔȂX(#X,Óà àà àb.à8 àMedical€advice€or€treatmentÏwas€recommended€by€or€receivedÏfrom€a€Physician.à8 àÌà à3.2à8 àPre„existing€Condition€LimitationsÌà àà8 àDuring€the€first€two€years€from€theÏDate€of€Issue,€We€will€not€payÏbenefits€for€a€Pre„Existing€conditionÏif€it€was€not€disclosed€on€YourÏapplication.€€You€are€responsible€forÏverifying€the€accuracy€of€each€andÏevery€statement€on€Your€application.€ÏAlso,€We€will€not€pay€benefits€for€anyÏloss€We€have€excluded€by€name€orÏspecific€description.Ìà à9.2à àIncontestableÌà àà àa.à8 àAfter€Your€Policy€has€been€inÏforce€for€two€years,€excludingÏany€time€You€are€Disabled,€WeÏcannot€contest€the€statementsÏin€the€application.Ìà àà àb.à8 àNo€claim€for€DisabilityÏbeginning€after€two€years€fromÏthe€Date€of€Issue€will€beÏreduced€or€denied€because€aÏdisease€or€physical€conditionÏexisted€before€the€Date€ofÏIssue€unless€it€is€excluded€byÏname€or€specific€description.ÌÌÌÌÓÓà àTennessee€Code€Annotated€section€56„26„108(2)(A)€providesÍthat€a€disability€insurance€policy€is€to€contain€a€provisionÏstating€that€after€a€policy€has€been€in€force€two€years,€no€mis„statements€except€fraudulent€mis„statements€made€by€the€applicantÏin€the€application€may€be€used€to€void€the€policy€or€deny€a€claim.€ÏAn€insurer€has€the€option€to€include€a€broader€incontestabilityÏclause€which€provides€that€after€the€policy€has€been€in€force€forÏtwo€years€(excluding€any€period€in€which€the€insured€is€disabled),Ïthe€policy€shall€become€incontestable€as€to€the€statementsÏcontained€in€the€application.ÌÌà àIn€late€1993€plaintiffððs€treating€physician,€Dr.€JudsonÏRogers,€determined€that€as€of€22€October€1993€plaintiff€had€becomeÏtotally€disabled€because€of€œAIDS.›€€Plaintiff,€was€at€that€time,Ïowner€and€manager€of€a€Baskin€Robbins€ice€cream€store.€€HeÏsubmitted€a€claim€to€Paul€Revere€for€disability€insuranceÏbenefits.ÌÌà àPaul€Revere€began€an€investigation€of€plaintiffððs€pre„application€medical€history€and€on€3€February€1994,€Paul€RevereÏsent€plaintiff€a€letter€stating€that€the€company€had€discoveredÏinformation€indicating€that€plaintiff€had€been€diagnosed€as€HIVÏpositive€in€1985.€€Paul€Revere€requested€additional€informationÏregarding€his€pre„application€history€which€plaintiff€provided.ÌÌà àFollowing€the€expiration€of€the€policyððs€ninety„day€waitingÏperiod,€Paul€Revere€paid€plaintiff€monthly€disability€insuranceÍbenefits€under€a€reservation€of€rights€until€27€December€1994.€ÏPaul€Revere,€at€that€time,€took€the€position€that€plaintiff€wasÏnot€entitled€to€benefits€because€the€policyððs€definition€ofÏsickness€did€not€cover€illnesses€which€manifested€themselvesÏbefore€the€policy€was€issued.€€Paul€Revere€then,€without€notice€toÏplaintiff,€resumed€making€automatic€premium€withdrawals€fromÏplaintiffððs€checking€account.ÌÌà àPlaintiff€brought€suit€to€recover€disability€paymentsÏwithheld€and€post„claim€premiums€taken€with€interest,€plus€a€25%Ïbad€faith€penalty€pursuant€to€Tennessee€Code€Annotated€section€56„7„105.€€Plaintiff€also€seeks€a€declaration€in€order€that€he€isÏentitled€to€receive€future€disability€benefits€under€the€policy.ÌÌà àThe€trial€court€granted€Paul€Revereððs€motion€for€summaryÏjudgment,€denied€plaintiffððs€motion€for€partial€summary€judgment,Ïand€ordered€plaintiff€to€repay€Paul€Revere€the€sum€of€$11,700.00Ïwhich€Paul€Revere€had€paid€to€plaintiff€as€disability€benefits.ÌÌà àOn€appeal,€it€is€Paul€Revereððs€insistence€that€theÏinsurance€contract€did€not€afford€coverage€for€a€disease€whichÏœmanifested€itself›€before€the€issuance€of€the€policy.€€Paul€RevereÏalso€insists€that€plaintiff€cannot€use€the€statutory€mandatedÏincontestability€clause€to€create€coverage.€€There€is€no€disputeÏin€the€record€that€plaintiff€was€armed€with€the€knowledge€that€heÏhad€been€previously€diagnosed€and€treated€for€HIV,€and€that€he€didÍnot€disclose€this€to€Paul€Revere€when€the€application€wasÏpresented.€€The€record€is€also€clear€that€plaintiffððs€disease€hadÏmanifested€itself€before€the€issuance€of€the€policy.ÌÌà àIn€this€appeal€it€is€plaintiffððs€insistence€that€he€isÏentitled€to€disability€insurance€benefits€because€his€disability,Ïthough€caused€by€a€known€and€undisclosed€pre„existing€condition,Ïis€covered€by€the€policyððs€incontestability€clause€which€did€notÏpreserve€the€insurer€of€defense€to€fraudulent€mis„statements.€€ItÏis€Paul€Revereððs€insistence€that€the€trial€court€properly€grantedÏsummary€judgment€because€the€statutory€mandated€incontestabilityÏclause€does€not€preclude€Paul€Revere€from€asserting€an€insurerððsÏright€to€deny€coverage€pursuant€to€the€terms€of€the€policy.ÌÌà àThe€courts€of€this€state€have€repeatedly€held€that€althoughÏincontestable€clauses€and€the€statutes€œwhich€require›€them€"cut„offÏchallenges€to€the€validity€of€an€insurance€policy...[they]€do€notÏaffect€a€policyððs€coverage."€€ò òòòNorman€v.€Plateau€Ins.€Co.ó óóó,€1989ÏWL€28775€(Tenn.€App.€1989);€ò òòòsee€also€Carothers€v.€Atlanta€LifeÏIns..€Co.ó óóó,€159€S.W.2d€830,€831€(Tenn.€1942);€ò òòòSmith€v.€EquitableÏLife€Assurance€Socððy€of€the€United€Statesó óóó,€89€S.W.2d€165,€167Ï(Tenn.€1936);€ò òòòScales€v.€Jefferson€Standard€Life€Ins..€Co.ó óóó,Ï295€œS.W.›€œ58,€60›€(Tenn.€1927)€œ(which›€holds€that€an€incontestableÏclause€does€"not€make€the€insurer€liable€for€a€larger€sum€thanÏwould€otherwise€be€due€under€the€œpolicy.")›€€œòòò òSearcy›€v.€FidelityÏBankerððs€Life€Ins..€Co.ó óóó,€656€S.W.2d€39,€40€(Tenn.€App.€1983),Íholding€that€an€incontestable€clause€does€not€expand€or€enlargeÏcoverage.ÌÌà àIn€ò òòòSearcyó óóó,€plaintiff€brought€suit€seeking€the€proceeds€ofÏa€credit€life€insurance€policy€issued€to€her€deceased€father€underÏa€master€group€policy€sold€by€defendant€to€the€bank.€€œ656€S.W.2dÏ39€(Tenn.€App.€1983).€€The€defendant€asserted€two€provisions€ofÏthe€policy€had€been€violated€and€denied€coverage.€€ò òòòId.ó óóó€at€40.€ÏPlaintiff€insisted€that€the€incontestability€clause€precluded€theÏdefendant€from€relying€upon€the€two€provisions€of€the€policy€toÏdeny€coverage.€€ò òòòId.ó óóó€€ÌÌà àIn€affirming€the€Chancellorððs€dismissal€of€plaintiffððsÏsuit,€the€court€stated:€€"The€crux€of€the€issue€that€this€court€isÏhere€called€upon€to€review€is€the€decision€of€the€Chancellor€thatÏthe€incontestability€clause€did€not€bother€defendant€fromÏasserting€a€defense€of€lack€of€coverage€in€the€case€where€theÏperson€sought€to€be€insured€did€not€meet€two€of€the€insuringÏconditions€in€the€policy."€€ò òòòId.ó óóó€at€41.€€The€court€went€on€to€stateÏ"incontestability€clauses€such€as€codified€above,€while€precludingÏthe€raising€of€the€defense€that€an€insurance€policy€is€invalid,€doÏnot€effect€the€raising€of€coverage€questions€by€the€insurer."€€ò òòòId.ó óóóÏat€40.ÌÌà àIn€ò òòòSmith€v.€Equitable€Life€Ins..€Socððy,ó óóó€169€Tenn.€477,Ï89€S.W.2d€165€(Tenn.€1935)€the€Supreme›€œCourt›€stated:ÌÓÓà8 àWe€think€it€apparent€that€the€confusion€which€seemsÏto€have€arisen€in€this€case,€and€in€several€ofÏthose€relied€on€for€the€insured,€is€due€to€theÏfailure€to€appreciate€the€distinction€between€"aÏdenial€of€coverage€and€a€defense€of€invalidity"Ïwhich€Chief€Justice€Cardozo,€when€on€the€Court€ofÏAppeals€of€New€York,€so€clearly€emphasized€in€hisÏopinion€in€òòMetropolitan€Life€Ins..€Co.€v.€Conwayóó,Ï252€NY€449,€169€N.E.€642.€€In€that€case€he€said:€Ï"the€provision€that€the€policy€shall€beÏincontestable€after€it€has€been€enforced...for€aÏperiod€of€two€years€is€not€a€mandate€as€toÏcoverage....€€It€means€œonly€...€that›€within€theÏlimits€of€the€coverage€the€policy€shall€stand,Ïunaffected€by€any€defense€that€it€was€invalid€inÏits€inception,€or€thereafter€became€invalid€byÏreason€of€the€condition€broke€œit."›ÌÌ169€Tenn.€at€403,€89€S.W.2d€at€167.ÌÌÌÌÓÓà àThe€court€recognized€that€it€was€"dealing€here€with€aÏmatter€of€coverage,€and€not€the€matter€of€the€validity€of€theÏpolicy€itself."€€ò òòòId.ó óóó€at€42.€€In€ò òòòNorman€v.€Plateau€Ins..€Co.ó óóó,Ï1989€WL€28775€(Tenn.€App.€1989),€plaintiff€and€her€husbandÏpurchased€a€car€and€group€credit€insurance€as€part€of€its€purchaseÏof€an€automobile€from€Hippodrome€Oldsmobile€in€March€1985.€€TheÏcertificate€of€insurance€was€prepared€by€Hippodrome,€PlateauððsÏinsurance€companyððs€agent,€and€identified€Mr.€Norman€as€56€yearsÏold,€although€he€actually€was€73.€€ò òòòId.ó óóó€€Hippodrome€was€unaware€ofÏMr.€Normanððs€correct€age€and€the€Normans€were€likewise€unawareÏthat€persons€over€65€years€of€age€were€ineligible€for€PlateauððsÏpolicy.€€ò òòòId.ó óóó€€Ms.€Norman€requested€that€Plateau€pay€off€theÏremaining€balance€on€the€automobile€loan€upon€Mr.€Normanððs€deathÏin€1987.€€ò òòòId.ó óóó€€In€denying€the€claim,€Plateau€stated€that€Mr.ÏNorman€had€been€ineligible€for€insurance.€€ò òòòId.ó óóó€€Plaintiff€NormanÍfiled€suit€against€Plateau€and€sought€summary€judgment€assertingÏthat€the€policyððs€incontestable€clause€prevented€Plateau€fromÏdenying€coverage.€€ò òòòId.ó óóó€€Plateau€answered€arguing€that€the€policyððsÏage€adjustment€clause€limited€its€liability€to€the€amount€of€theÏpremium.€€ò òòòId.ó óóó€€In€vacating€the€trial€courtððs€decision€to€grantÏsummary€judgment€on€behalf€of€plaintiff,€the€court€held€thatÏdefendant€Plateau€may€raise€defenses€arising€from€the€policyÏdespite€the€policyððs€incontestable€clause.€€ò òòòId.ó óóó€at€4.€€The€courtÏfurther€stated:ÌÓÓà8 à[Incontestable€clauses]€cut€off€challenges€to€theÏvalidity€of€an€insurance€policy€except€for€thoseÏexpressly€accepted€from€the€clauses€operation....Ìà8 àHowever,€incontestable€clauses€do€not€affect€aÏpolicyððs€coverage...they€do€not€expand€or€enlargeÏcoverage,...and€they€do€not€make€the€insurer€liableÏfor€a€larger€sum€than€would€otherwise€be€due€underÏthe€policy.ÌÌÌÌœà8 à›à àThus,€the€threshold€issue€in€cases€construingÏthe€effect€of€an€incontestable€clause€is€whetherÏthe€insurance€claim€relates€to€the€validity€of€theÏpolicy€or€whether€it€relates€to€limitations€ofÏcoverage.€€If€it€relates€to€the€former€it€isÏbarred;€if€it€relates€to€the€latter€it€is€not.€Ï...In€this€case,€Plateau€is€raising€a€matter€ofÏcoverage.€€It€is€asserting€one,€that€Mr.€Norman€wasÏnot€eligible€for€insurance€because€he€was€over€65Ïyears€old€when€he€bought€the€car,€and€two,€that€theÏcertificate€of€insurance€was€issued€contrary€to€theÏterms€of€the€group€policy€and€the€agency€agreement.€ÏWe€find€that€Plateau€may€raise€these€defensesÏdespite€the€policyððs€incontestable€clause.€€ò òòòId.ó óóó€atÏ3„4.€€We€think€it€is€clear€that€Tennessee€hasÏadopted€the€majority€rule€concerning€theÏapplication€of€incontestability€clauses€by€findingÏthat€an€incontestable€clause€is€not€a€mandate€as€toÏcoverage€or€to€risk€assumed€and€"notwithstandingÏthe€exception€in€such€clause,€the€insurer€may€denyÏliability€for€the€full€amount€of€the€policy€byÏinvoking€the€application€of€another€clause€in€theÍpolicy€involving€exceptions€of€risk€not€enumeratedÏin€the€incontestability€clause..."€€ò òòòSee€CarothersÏv.€Atlanta€Life€Ins..€Co.ó óóó,€159€S.W.2d€830,€831„32€(Tenn.€1942).ÌÌÓÓà àœÌà àIt›€is€plaintiffððs€contention€that€Tennesseeððs€statutoryÏmandated€incontestability€clause€precludes€insurers€fromÏcontesting€coverage€for€any€reason€after€the€expiration€of€the€twoÏyear€contestable€period.€€The€incontestability€clause€in€theÏsubject€policy€states€œthat:ÌÓÓà8 àa.à àAfter›€your€policy€has€been€in€force€for€twoÏyears,€excluding€any€time€you€are€disabled,€weÏcannot€contest€the€statements€in€the€œapplication.›€œÌà8 àb.à àNo›€claims€for€disability€beginning€after€twoÏyears€from€the€date€of€issue€will€be€reduced€orÏdenied€because€a€disease€or€physical€conditionÏexisting€from€the€date€of€issue€unless€it€isÏexcluded€by€name€or€specific€œdescription.›ÌÌà àœÌÌÓÓà àThe›€plaintiff€cites€several€cases€in€support€of€hisÏargument€that€once€the€two€year€time€period€has€passed,€theÏincontestability€clause€provides€that€"an€insurer€cannot€avoid€aÏclaim€on€the€ground€that€the€insured€submitted€a€fraudulentÏapplication."ÌÌà àHowever,€we€are€of€the€opinion€that€these€cases€stand€onlyÏfor€the€proposition€that€the€incontestable€clause€prevents€anÏinsurer€from€voiding€the€policy,€that€is,€contesting€the€validityÏof€the€policy.€€Plaintiff€does€not€recognize€the€distinctionÏbetween€the€facts€and€the€legal€arguments€of€the€instant€case€andÍthose€cited€by€plaintiff.× ƒ, ××  ×€€Here,€Paul€Revere€does€not€contest€theÏvalidity€of€the€policy€due€to€the€fraudulent€misrepresentationsÏmade€by€plaintiff€in€his€application€for€insurance.€€Paul€RevereÏcontends€that€the€policyððs€limiting€definition€of€covered€sicknessÏexcludes€plaintiffððs€claim€from€coverage€under€the€policy.€€We€areÏof€the€opinion€that€Paul€Revere€is€not€barred€by€theÏincontestability€clause€from€arguing€that€plaintiffððs€disabilityÏclaim€is€not€covered€under€the€policy.ÌÌà àIn€the€instant€case,€the€trial€courtððs€judgment€conforms€toÏthe€majority€rule€applied€in€other€jurisdictions€concerning€theÏapplication€of€the€incontestability€clause€to€the€issue€ofÏcoverage.ÌÌà àThe€majority€of€jurisdictions€that€have€addressed€thisÏissue€have€adopted€the€rule€that€the€incontestability€clauseÏrelates€only€to€the€validity€of€the€contract€and€should€not€affectÏin€any€way€whatsoever€the€construction€of€the€terms€of€the€policy.€Ïò òòòButton€v.€Connecticut€General€Life€Insurance€Co.ó óóó,€847€F.2dÏ584,€588€(9th€Cir.€1988);€ò òòòMinnesota€Mutual€Life€Insurance€Co.Ïv.€Morseó óóó,€487€S.W.2d€317€(Tex.€1972),€holds€that€the€policy€isÏvalid€after€expiration€of€a€contestability€period€but€that€theÏinsurer€may€still€dispute€whether€the€claim€is€covered.€€ò òòòId.ó óóó€atÍ319„20.ÌÌà àTennessee€has€adopted€the€majority€rule€that€anÏincontestability€clause€limits€only€the€insurerððs€ability€toÏcontest€the€validity€of€a€policy€which€would€otherwise€be€voidableÏbecause€of€the€insuredððs€fraud;€the€clause€does€not€expandÏcoverage€beyond€the€terms€of€the€policy.€€òòò òScales€v.€JeffersonÏStandard€Life€Ins..€Co.óó,€ó ó295€œS.W.›€58,€60€(Tenn.€1927);€ò òòòSearcyÏv.€Fidelity€Bankerððs€Life€Ins..€Co.ó óóó,€656€S.W.2d€39,€40€(Tenn.ÏApp.€1983).€€Plaintiff€does€not€in€his€brief€appear€to€dispute€theÏadoption€of€the€majority€rule€in€Tennessee;€however,€plaintiffÏrequests€this€œCourt›€to€simply€ignore€precedent€œadverse€to€it.ÌÌà àPaul€Revereððs€incontestability€clause€states,€in€pertinentÏpart,€that€"no€claim€for€disability€beginning€after€two€years€fromÏthe€date€of€issue€will€be€reduced€or€denied€because€of€a€diseaseÏor€physical€condition€existing€from€the€date€of€issue€unless€it€isÏexcluded€by€name€or€a€specific€description."€€This€limitingÏdefinition€of€covered€sickness€serves€as€an€exception€by€specificÏdescription€to€part€two€of€the€incontestability€clause.ÌÌà àThe€policy€issued€to€the€plaintiff€entitled€plaintiff€toÏbenefits€when€"because€of€injury€or€sickness"€the€plaintiff€isÏ"unable€to€perform€the€important€duties€of€[his]€regularÏoccupation."€€"Sickness"€is€defined€as€"sickness€or€disease€whichÏfirst€manifests€itself€after€the€date€of€issue€and€while€yourÍpolicy€is€in€force."€€Disease€is€manifest€when€it€is€capable€ofÏdiagnosis€by€a€physician.€€ò òòòSee€Christopher€v.€ConsolidationÏCoal€Co.ó óóó,€262€Tenn.€727,€440€S.W.2d€281€(Tenn.€1969).€ÏPlaintiffððs€sickness,€for€which€he€made€claim,€manifested€when€heÏwas€first€diagnosed€as€HIV€positive.€€Paul€Revere€is€entitled€toÏlimit€the€scope€of€coverage€to€sicknesses€that€"first€manifest"Ïthemselves€after€the€policy€has€been€issued.€€ò òòòSee€Paul€RevereÏLife€Ins..€Co.€v.€Haasó óóó,€644€A.2d€1098,€1106€(N.J.€1994).€ÏPlaintiff€was€diagnosed€and€treated€as€HIV€positive€before€theÏpolicy€was€issued.€€Therefore,€€plaintiff€is€not€covered€underÏPaul€Revereððs€policy€which€limits€covered€sicknesses€to€thoseÏwhich€first€manifest€themselves€after€the€policy€was€issued.ÌÌà àPlaintiff€acknowledges€the€terms€of€the€policy€issued€byÏPaul€Revere€which€provide€coverage€for€total€disability€resultingÏfrom€sickness€which€first€becomes€manifest€during€the€policyÏperiod.€€Additionally,€the€terms€and€conditions€of€the€policyÏquite€clearly€eliminate€coverage€for€illnesses€which€manifestsÏthemselves€prior€to€the€issuance€of€the€policy.€€The€policy€onlyÏextends€coverage€for€illnesses€occurring€during€the€policy€periodÏand€expressly€precludes€coverage€for€illnesses€which€manifestÏthelmselves€prior€to€the€effective€date€of€the€policy.€ÏFurthermore,€plaintiffððs€argument€fails€because€of€his€failure€toÏrecognize€and€accept€the€obvious€distinction€between€a€pre„existing€condition€and€manifestation€of€an€illness.€€ThisÏdifference€is€demonstrated€in€ò òòòPaul€Revere€Life€Ins..€Co.€v.ÍHaasó óóó,€where€the€court€recognized€a€distinction€between€a€manifestÏcondition€and€one€that€exists.€€ò òòòHaasó óóó,€644€A.2d€at€1106.€€ThisÏdistinction€is€also€apparent€in€comparing€the€statutorily€mandatedÏincontestable€clause€in€the€coverage€provisions€of€the€policy.€ÏUnder€the€incontestable€clause,€coverage€will€not€be€deniedÏbecause€a€condition€existed€"before€the€date€of€issue."€€WhereasÏthe€policy€specifically€states€that€coverage€is€only€provided€forÏsickness€which€must€"manifest€itself€after€the€date€of€issue."€€ÌÌà àWithin€the€context€of€the€contract€of€insurance,€theÏincontestability€clause€is€clear€and€does€not€result€inÏinconsistency€or€ambiguity.€€The€incontestability€clause€bars€aÏdefense€based€on€an€insurerððs€claim€that€a€disease€existed€asÏopposed€to€a€claim€that€it€manifested€itself€prior€to€the€issuanceÏof€the€policy.€€The€incontestability€clause€protects€an€insuredÏwho€fills€out€an€insurance€application€without€knowledge€or€reasonÏto€know€that€he€is€suffering€from€a€particular€illness€or€disease;Ïhowever,€the€clause€would€not€protect€an€insured€who€knows€that€heÏsuffers€from€a€disease€and€nevertheless€fails€to€inform€theÏinsurer€of€this€fact.€€Here,€plaintiff€proposes€a€system€wherebyÏthe€incontestability€clause€would€grant€the€same€degree€ofÏprotection€to€insureds€who€fraudulently€misrepresent€their€medicalÏstatus€to€those€who€unknowingly€are€afflicted€by€an€illness€whichÏdoes€not€manifest€itself€prior€to€the€issuance€of€the€policy.€€ToÏadopt€such€a€system€would€be€to€encourage€dishonesty€and€rewardÏdeception€contrary€to€clear€public€policy.€€ÌÌà àConsumers€should€not€be€encouraged€nor€allowed€to€purchaseÏinsurance€for€a€risk€that€is€known€to€have€already€occurred.ÌÌà àThe€distinction€between€a€"manifest"€condition€and€one€thatÏ"exists"€is€recognized€under€Tennessee€law.€€In€ò òòòHorace€MannÏMutual€Ins.€Co.€v.€Burrowó óóó,€213€Tenn.€262,€373€S.W.2d€469Ï(1963),€the€insurer€attempted€to€deny€coverage€for€an€operationÏrequired€to€correct€an€esophageal€bronchial€fistula€which€wasÏcaused€by€a€congenital€condition€existing€before€the€policy€was€inÏforce.€€The€insurance€company€argued€that€the€loss€was€not€causedÏby€a€sickness€defined€in€the€policy€as€"sickness€as€used€hereinÏmeans€sickness€or€disease€occurring€while€the€insurance€is€inÏforce."€€ò òòòId.ó óóó€at€471.€€The€court€concluded€that€although€theÏ"fistula...existed€dormant€all€these€years€in€the€(insuredððs)Ïbody,€it€was€not€a€sickness€as€the€court€interpreted€the€term."€Ïò òòòId.ó óóó€€The€court,€quoting€from€CJS€Insurance€Section€893€stated€"anÏillness€or€disability€has€been€deemed€to€have€its€inception€whenÏthe€disease€first€becomes€manifest€or€active€and€not€at€theÏearlier€time€when€the€medical€cause€of€the€disease€may€have€begunÏor€had€its€origin."€€ò òòòId.ó óóó€at€472.€€ÌÌà àPaul€Revere€has€complied€with€the€judicial€interpretationÏof€the€term€"manifestation."€€Pursuant€to€the€distinction€betweenÏ"manifesting€and€existing"€recognized€in€Tennessee,€plaintiffððsÏcondition€had€manifested€when€he€was€diagnosed€as€HIV€positive,Íwell€before€the€policy€was€issued.€€Coverage€is€not€afforded€underÏthe€policy€and€the€statutorily€mandated€incontestable€clauseÏcannot€be€employed€to€create€coverage.ÌÌà àThe€statutorily€mandated€incontestable€clause€does€notÏprohibit€Paul€Revere€from€denying€plaintiffððs€claim€based€upon€aÏlack€of€coverage€due€to€the€prior€manifestation€of€his€illness.€ÏThe€statutorily€mandated€incontestable€clause€only€prohibitsÏdenials€of€claims€based€upon€the€prior€existence€of€a€disease,Ïrather€than€the€manifestation€of€a€disease€prior€to€the€issuanceÏof€the€policy.ÌÌà àFor€the€reasons€herein€we€are€of€the€opinion€that€extensionÏof€coverage€to€plaintiff€would€only€serve€to€reward€and€shelter€aÏfraudulent€insured.€€ò òòòSee€Township€of€Gloucester€v.€MarylandÏCas.€Co.ó óóó,€668€F.2d€394,€403€(D.N.J.€1987),€holding€that€a€personÏ"cannot€obtain€insurance€for€a€risk€that€the€insured€knows€hasÏalready€transpired."ÌÌà àIt€therefore€results€that€the€judgment€of€the€trial€courtÏis€affirmed,€and€the€cause€is€remanded€to€the€trial€court€for€anyÏfurther€necessary€proceedings.€€Costs€on€appeal€are€taxed€toÏplaintiff/appellant.ÌÌÌÓÓÌÌà àà à›à àà àœ________________________________›Ìœà àà à›à àà àSAMUEL€L.€LEWIS,€JUDGEÌÌÌÌCONCUR:ÌÌÌÌ_________________________________ÌœHENRY€F.€TODD,€P.J.,€M.S.ÌÌÌÌ_________________________________›ÌœBEN€H.€CANTRELL,€J.ÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌ