Farmers State Bank of Russell v. Western National Mutual Insurance Co.

OPINION

HAROLD W. SCHULTZ, Acting Judge. *

Appellant Western National Mutual Insurance Company challenges a judgment obligating it to reimburse Farmers State Bank as the loss payee on an insurance policy. The trial court found that an insurer is entitled to rescind the policy coverage as to the insured but is obligated to contin ue coverage for the loss payee who is innocent of any misrepresentations.

PACTS

LeRoy Steenhoven repairs and resells vehicles. His nephew, Jeff Steenhoven, offered to purchase a repaired 1986 Ford Ranger pickup prior to commencing his duties with the Air Force in Alaska.…