Penn Mutual Gets Partial Win In Illegal STOLI Case

Law360, New York (August 15, 2012, 5:03 PM EDT) -- An Illinois federal judge on Wednesday gave Penn Mutual Life Insurance Co. a partial win in its suit against GreatBanc Trust Co., the trustee of a stranger-owned life insurance policy that the trustee admitted was unlawfully procured.

U.S. District Judge John J. Tharp Jr. granted Penn Mutual's bid for summary judgment that the life insurance policy at issue lacked an insurable interest and was therefore void ab initio, a finding that GreatBanc did not in fact dispute. He refused to take any action on the question...
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