Kirk Johnson applied for life insurance with New York Life Insurance Co. on October 7, 2016. In answer to a question about smoking habits, Johnson stated that he had not smoked in the past twelve months and that he had never smoked cigarettes. In fact, Johnson had smoked for thirteen years, and during the month prior to the insurance application, he was smoking approximately ten cigarettes per day. Johnson died on July 17, 2017, in an automobile accident. Johnson's father, Lawrence Johnson, who was the beneficiary of the policy, filed a claim for the insurance proceeds. While investigating the claim, New York Life discovered Kirk Johnson's misrepresentation and denied the claim. The company retroactively canceled the policy and sent Lawrence Johnson a check for the premiums that had been paid. Lawrence Johnson refused to accept the check, and New York Life brought an action for a declaratory judgment (a court determination of a plaintiff's rights). What should the court decide? Discuss fully.