Federated Guaranty Life Ins. Co. v. Wilkins

This case grew out of the following facts:

In November 1978, Oren Wilkins and his wife, Margie Nell Wilkins, purchased a 1979 Ford pick-up truck and financed it through Federated Guaranty Financial Corporation (Financial). The couple also bought a credit life insurance policy on the life of Oren Wilkins through Financial's "sister" corporation, Federated Guaranty Life Insurance Company (Guaranty Life). This policy assured payment of any balance owed on the truck in the event of Oren Wilkins's death before the truck was fully paid for.

Oren Wilkins operated a small logging company near Addison,…