Gulf Life Insurance Company v. Sidney M. Folsom, Folsom Construction Company, Randall M. Folsom and Lawanda F. Rigdon

HILL, Senior Circuit Judge:

The appellant in this ease, Gulf Life Insurance Company (“Gulf”) issued four $100,000 policies of whole life insurance on the life of Sidney M. Folsom, who was at that time the chief operating ■ officer of appellee, Folsom Construction Company ("Folsom”). One policy was issue on March 5, 1974, and the other three were issued on March 4, 1977. Folsom was the owner and beneficiary of all four policies at all times pertinent to the issues involved in this ease.

In June of 1981, Folsom applied to Gulf Life Insurance Company for policy “loans” on each of the four $100,000…