“For the first few years of coverage, the elder Thompsons made gifts to their children for the purpose of paying the premiums. But after the parents’ gifts stopped, the children no longer made premium contributions to the policy. To continue the policy in force, the insurer took loans for seven years against the policy’s cash values under the contract’s automatic premium loan provision. Witherspoon, the agent, was informed but did not pass along the information to the Thompson children.”

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