Nothing Strange About STOLI

Law360, New York (November 24, 2010, 12:03 PM EST) -- While the term stranger-originated life insurance has been used quite frequently in the insurance industry, particularly in the life settlement industry, defining its parameters has been met with some difficulty. Many experts define STOLI transactions as “a practice or a plan to initiate a life insurance policy for the benefit of a third party investor who, at the time the life insurance policy is originated, has no insurable interest in the insured."[1]

Federal and state views on STOLI arrangements have varied widely over the years, and...
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