Local Bank and Trust ("LBT") entered into a credit financing arrangement with Thompson whereby Thompson would borrow up to $500,000 from LBT. LBT required Thompson apply for and receive a life insurance policy designating LBT as its beneficiary. While the loan was outstanding, Thompson stopped paying the premiums on the policy, but LBT continued to make those payments and simply added those amounts paid to Thompson's loan. Thompson died before the loan was paid off and the insurance company refused to pay the policy proceeds to LBT. LBT may