Principal Life Insurance Co. v. Rucker: Carrier Wins Substantial Victory in Beneficial Interest/STOLI Transaction Case

By Stephan Leimberg and Howard Zaritsky The decision in Principal Life Ins. Co. v. Lawrence Rucker 2007 Ins. Trust, 2010 U.S. Dist. LEXIS 89243 (D. Del. Aug. 30, 2010) is important for three reasons. First, most of the prior insurer victories have been limited to surviving a motion to dismiss,...

Nationwide v. Steiner: Stranger Initiated Annuity Transactions (STATs) Again Upheld

By Stephan Leimberg and Howard Zaritsky In LISI Estate Planning Newsletter #1655, Howard Zaritsky provided members with his analysis of what appeared to be the first reported “STAT” decision, W. Reserve Life Assur. Co. v. Conreal LLC, 2010 U.S. Dist. LEXIS 56340 (D.R.I. June 2, 2010) ...

Kramer v. Phoenix Life Ins. Co. - New York Court of Appeals Holds STOLI Arrangements Satisfy NY Insurable Interest Requirements

By Stephan Leimberg and Howard Zaritsky In a case certified to it by the U.S. Court of Appeals for the Second Circuit, the highest court in New York held in a 5-2 decision that New York's insurable interest rules didn't prohibit an insured from buying a policy on his or her own life and thereafter...