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Remedies Keyed to Tabb, 8th
Kansas Farm Bureau Life Insurance Company, Inc. v. Farmway Credit Union
Citation:
256 Kan. 968 (1995)Facts
In 1974, Kansas Farm Bureau Life Insurance Company issued a life insurance policy on Keith J. Schreuder, who assigned the policy to Farmway Credit Union as collateral. Schreuder disappeared around April 17, 1982, and Farmway subsequently reinstated the policy and paid premiums. In October 1988, Farmway contacted KFB about making a claim, and KFB advised in January 1989 that the preferred method was obtaining a court order of presumption of death. After the requisite seven-year period elapsed, Farmway filed a petition in Mitchell County District Court, which on May 17, 1989, declared Schreuder dead with a death date of April 17, 1982. KFB then paid Farmway $86,221 in policy proceeds plus $11,721.71 in premium refunds. In April 1992, KFB learned Schreuder was alive and demanded repayment on June 12, 1992. When Farmway refused, KFB filed suit on August 21, 1992.
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