diff --git a/app/genesis.go b/app/genesis.go
index 29031d269a..17d9bdebea 100644
--- a/app/genesis.go
+++ b/app/genesis.go
@@ -39,11 +39,10 @@ func LoadGenesis(app InitStater, filePath string) error {
 	// execute all the genesis init options
 	// abort on any error
 	for _, opt := range opts {
-		_, _ = app.InitState(opt.Module, opt.Key, opt.Value)
-		// TODO: error out on bad options??
-		// if err != nil {
-		//  return err
-		// }
+		_, err = app.InitState(opt.Module, opt.Key, opt.Value)
+		if err != nil {
+			return err
+		}
 	}
 	return nil
 }
diff --git a/app/genesis_test.go b/app/genesis_test.go
index 14b841480b..f62164f696 100644
--- a/app/genesis_test.go
+++ b/app/genesis_test.go
@@ -17,6 +17,10 @@ import (
 const genesisFilepath = "./testdata/genesis.json"
 const genesisAcctFilepath = "./testdata/genesis2.json"
 
+// 2b is just like 2, but add carl who has inconsistent
+// pubkey and address
+const genesisBadAcctFilepath = "./testdata/genesis2b.json"
+
 func TestLoadGenesisDoNotFailIfAppOptionsAreMissing(t *testing.T) {
 	logger := log.TestingLogger()
 	store, err := MockStoreApp("genesis", logger)
@@ -27,35 +31,16 @@ func TestLoadGenesisDoNotFailIfAppOptionsAreMissing(t *testing.T) {
 	require.Nil(t, err, "%+v", err)
 }
 
-func TestLoadGenesis(t *testing.T) {
-	assert, require := assert.New(t), require.New(t)
+func TestLoadGenesisFailsWithUnknownOptions(t *testing.T) {
+	require := require.New(t)
 
 	logger := log.TestingLogger()
 	store, err := MockStoreApp("genesis", logger)
 	require.Nil(err, "%+v", err)
+
 	app := NewBaseApp(store, DefaultHandler("mycoin"), nil)
-
 	err = LoadGenesis(app, genesisFilepath)
-	require.Nil(err, "%+v", err)
-
-	// check the chain id
-	assert.Equal("foo_bar_chain", app.GetChainID())
-
-	// and check the account info - previously calculated values
-	addr, _ := hex.DecodeString("eb98e0688217cfdeb70eddf4b33cdcc37fc53197")
-
-	coins, err := getAddr(addr, app.Append())
-	require.Nil(err)
-	assert.True(coins.IsPositive())
-
-	// make sure balance is proper
-	assert.Equal(2, len(coins))
-	assert.True(coins.IsValid())
-	// note, that we now sort them to be valid
-	assert.EqualValues(654321, coins[0].Amount)
-	assert.EqualValues("ETH", coins[0].Denom)
-	assert.EqualValues(12345, coins[1].Amount)
-	assert.EqualValues("blank", coins[1].Denom)
+	require.NotNil(err, "%+v", err)
 }
 
 // Fix for issue #89, change the parse format for accounts in genesis.json
@@ -84,9 +69,6 @@ func TestLoadGenesisAccountAddress(t *testing.T) {
 		{"62035D628DE7543332544AA60D90D3693B6AD51B", true, true, coin.Coins{{"one", 111}}},
 		// this comes from an address, should be stored proper (bob)
 		{"C471FB670E44D219EE6DF2FC284BE38793ACBCE1", true, false, coin.Coins{{"two", 222}}},
-		// this one had a mismatched address and pubkey, should not store under either (carl)
-		{"1234ABCDD18E8EFE3FFC4B0506BF9BF8E5B0D9E9", false, false, nil}, // this is given addr
-		{"700BEC5ED18E8EFE3FFC4B0506BF9BF8E5B0D9E9", false, false, nil}, // this is addr of the given pubkey
 		// this comes from a secp256k1 public key, should be stored proper (sam)
 		{"979F080B1DD046C452C2A8A250D18646C6B669D4", true, true, coin.Coins{{"four", 444}}},
 	}
@@ -106,6 +88,19 @@ func TestLoadGenesisAccountAddress(t *testing.T) {
 	}
 }
 
+// When you define an account in genesis with address
+// and pubkey that don't match
+func TestLoadGenesisAccountInconsistentAddress(t *testing.T) {
+	require := require.New(t)
+
+	logger := log.TestingLogger()
+	store, err := MockStoreApp("genesis", logger)
+	require.Nil(err, "%+v", err)
+	app := NewBaseApp(store, DefaultHandler("mycoin"), nil)
+	err = LoadGenesis(app, genesisBadAcctFilepath)
+	require.NotNil(err)
+}
+
 func TestParseGenesisList(t *testing.T) {
 	assert, require := assert.New(t), require.New(t)
 
@@ -126,3 +121,30 @@ func TestParseGenesisList(t *testing.T) {
 	assert.Equal(genDoc.AppOptions.pluginOptions[0].Value, "value1")
 	assert.Equal(genDoc.AppOptions.pluginOptions[1].Value, "value2")
 }
+
+func TestGetGenesisOptions(t *testing.T) {
+	assert, require := assert.New(t), require.New(t)
+
+	opts, err := GetGenesisOptions(genesisFilepath)
+	require.Nil(err, "loading genesis file %+v", err)
+
+	require.Equal(4, len(opts))
+	chain := opts[0]
+	assert.Equal(ModuleNameBase, chain.Module)
+	assert.Equal(ChainKey, chain.Key)
+	assert.Equal("foo_bar_chain", chain.Value)
+
+	acct := opts[1]
+	assert.Equal("coin", acct.Module)
+	assert.Equal("account", acct.Key)
+
+	p1 := opts[2]
+	assert.Equal("plugin1", p1.Module)
+	assert.Equal("key1", p1.Key)
+	assert.Equal("value1", p1.Value)
+
+	p2 := opts[3]
+	assert.Equal("plugin1", p2.Module)
+	assert.Equal("key2", p2.Key)
+	assert.Equal("value2", p2.Value)
+}
diff --git a/app/testdata/genesis2.json b/app/testdata/genesis2.json
index a880b3c64c..18ec87164f 100644
--- a/app/testdata/genesis2.json
+++ b/app/testdata/genesis2.json
@@ -22,19 +22,6 @@
           "amount": 222
         }
       ]
-    }, {
-      "name": "carl",
-      "address": "1234ABCDD18E8EFE3FFC4B0506BF9BF8E5B0D9E9",
-      "pub_key": {
-        "type": "ed25519",
-        "data": "177C0AC45E86257F0708DC085D592AB22AAEECD1D26381B757F7C96135921858"
-      },
-      "coins": [
-        {
-          "denom": "three",
-          "amount": 333
-        }
-      ]
     }, {
       "name": "sam",
       "pub_key": {
diff --git a/app/testdata/genesis2b.json b/app/testdata/genesis2b.json
new file mode 100644
index 0000000000..a880b3c64c
--- /dev/null
+++ b/app/testdata/genesis2b.json
@@ -0,0 +1,52 @@
+{
+  "chain_id": "addr_accounts_chain",
+  "app_options": {
+    "accounts": [{
+      "name": "alice",
+      "pub_key": {
+        "type": "ed25519",
+        "data": "DBD9A46C45868F0A37C92B53113C09B048FBD87B5FBC2F8B199052973B8FAA36"
+      },
+      "coins": [
+        {
+          "denom": "one",
+          "amount": 111
+        }
+      ]
+    }, {
+      "name": "bob",
+      "address": "C471FB670E44D219EE6DF2FC284BE38793ACBCE1",
+      "coins": [
+        {
+          "denom": "two",
+          "amount": 222
+        }
+      ]
+    }, {
+      "name": "carl",
+      "address": "1234ABCDD18E8EFE3FFC4B0506BF9BF8E5B0D9E9",
+      "pub_key": {
+        "type": "ed25519",
+        "data": "177C0AC45E86257F0708DC085D592AB22AAEECD1D26381B757F7C96135921858"
+      },
+      "coins": [
+        {
+          "denom": "three",
+          "amount": 333
+        }
+      ]
+    }, {
+      "name": "sam",
+      "pub_key": {
+        "type": "secp256k1",
+        "data": "02AA8342F63CCCCE6DDB128525BA048CE0B2993DA3B4308746E1F216361A87651E"
+      },
+      "coins": [
+        {
+          "denom": "four",
+          "amount": 444
+        }
+      ]
+    }]
+  }
+}