On these facts, was Medico entitled to rescind the policy?

Benjamin Born applied for a life insurance policy from Medico Life Insurance Company. The application form called for a health history, which Born provided. In addition, the application form asked specific questions about preexisting medical conditions. Born’s wife, Adeline, answered these questions by stating that Born had no preexisting medical problems and was in good health. After issuing the policy, Medico discovered that Born had a history of heart disease, degenerative arthritis, and urinary system disorders. Medico then rescinded the policy and provided Born a check representing a refund of the premiums he had paid. Taking the position that he was still insured, Born refused the refund check. On these facts, was Medico entitled to rescind the policy?

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