Defendant's Attorney: William E. Hanna

Description: Wichita, Kansas insurance law lawyer represented the Plaintiff.

Cathy L. Stroud sued Ozark National Life Insurance Company and its agent and manager Stephen Guinn for negligent misrepresentation and breach of fiduciary duty after her husband, Alan Stroud, converted his term life insurance policy to a whole life policy that reduced the death benefit provided to her as the sole beneficiary

Legal issue Does an insurance agent owe a fiduciary duty to a policyholder and beneficiary when advising on converting a life insurance policy, and can negligent misrepresentation be claimed when an agent provides incomplete but not false information?
Headnote

INSURANCE LAW. REAL PARTY IN INTEREST. The case addresses whether a beneficiary of a life insurance policy can bring a lawsuit for breach of fiduciary duty and negligent misrepresentation without being the policy owner or representing the estate of the deceased policyholder.

INSURANCE LAW. BREACH OF FIDUCIARY DUTY. The court evaluates if an insurance agent owes a fiduciary duty to the policy beneficiary and policyholder, particularly when advising on policy changes, and determines that a special relationship must exist with conscious assumption of duty by the fiduciary.

INSURANCE LAW. NEGLIGENT MISREPRESENTATION. The court examines whether negligent misrepresentation claims require an affirmative false statement and not merely a failure to disclose certain information in the context of life insurance policy advice.

PROCEDURAL LAW. SUMMARY JUDGMENT STANDARD. The court reviews the application of summary judgment principles, emphasizing that summary judgment is proper if there is no genuine issue as to any material fact, focusing on facts related to the insurance agent's representations.

CIVIL PROCEDURE. PRESERVATION OF ISSUES. The court underscores the necessity for cross-petitions for review in preserving issues for appeal and analyzes the application of plain error doctrine in appellate review.
Key Phrases Breach of fiduciary duty. Negligent misrepresentation. Real party in interest. Summary judgment. Fiduciary relationship.

Outcome: Summary judgment in favor of the Defendants.

Affirmed

Plaintiff's Experts:

Defendant's Experts:

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