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KNISLEY v. U.S.

No. 88-3930.

901 F.2d 793 (1990)

Donna L. KNISLEY (formerly Bell) as executrix for the Estate of Louis R. Bell, Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided April 25, 1990.

Attorney(s) appearing for the Case

Robert E. Kovacevich, Spokane, Wash., for plaintiff-appellant.

Brian C. Griffin, Tax Div., Dept. of Justice, Washington, D.C., for defendant-appellee.

Before NORRIS, THOMPSON, and O'SCANNLAIN, Circuit Judges.

WILLIAM A. NORRIS, Circuit Judge:

Decedent Louis Bell was the husband of appellant, Donna Knisley, who brought this suit on behalf of Bell's estate. In 1978 or 1979, they sought a business loan from SeaFirst Bank. The bank agreed to the loan on the condition that Bell would take out a $400,000 term policy insuring his life. Bell applied for the policy in his own name, and named his estate as the beneficiary. However, shortly after the issuance of the policy, Bell...

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