Llewelyn Ex Rel. Estate of Dillard v. Dobson Bros.

Ness, Justice:

This appeal is from an order awarding respondent, as administratrix of the estate of her father Donald L. Dillard, the proceeds from an insurance policy maintained by appellant Dobson Brothers on his life. We affirm in part and reverse in part.

In 1970, Dobson Brothers purchased a $25,000 double indemnity policy on Dillard’s life, naming itself as beneficiary. Dillard then owed appellant approximately $35,000, partially secured by mortgages on some of his real estate.

Dillard sold this property in 1973, the purchaser assuming the mortgages. Appellant nontheless continued to pay…