New Appleman Premium Online Checklists - § 34.01 Checklist: Determining Parties and Insurable Interests to Life Insurance Policies

New Appleman Premium Online Checklists - § 34.01 Checklist: Determining Parties and Insurable Interests to Life Insurance Policies , is one of the 200 coverage checklists in New Appleman Premium Online Checklists. This online checklist gives step by step guidance to help practitioners ensure that...

The Law of Life and Health Insurance - § 2.07[9] Investor Initiated Life Insurance (“IILI”)

The Law of Life and Health Insurance - § 2.07[9] Investor Initiated Life Insurance ("IILI") , is a section that was recently added to Chapter 2 "Insurable Interest" of The Law of Life and Health Insurance by Bertram Harnett and Irving Lesnick. The authors added this subsection...

New Hampshire Restricts STOLI Transactions

New Hampshire Governor John Lynch (D) signed HB 660 into law which enacted life settlement legislation in New Hampshire effective June 14, 2010 (the "Act"). The Act is primarily based on the National Association of Insurance Commissioners' model, and, among other things, imposes restrictions...

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) ...

Principal Life v. Mosberg - STOLI on the Rocks

By Stephan Leimberg and Howard Zaritsky The story below concerns yet another case of "STOLI ON THE ROCKS." EXECUTIVE SUMMARY: A U.S. District Court held that insurable interest was lacking in the purchase of a life insurance policy and that it was therefore void from inception. Principal...

Western Reserve Life Ass. Co. of Ohio v. Conreal: First Stranger Initiated Annuity Transaction Decision

By Stephan Leimberg and Howard Zaritsky The STAT is an intriguing use of annuities to avoid risk of loss in aggressive investments. It is available only because some annuity issuers attempt to tempt older annuitants by offering a full return of their premiums if the annuitant dies prematurely. It...

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...

New Appleman on Insurance: Current Critical Issues Article Has Been Published in the Spring 2011 Issue of ABA publication, The Brief

The article is "Illicit Life Settlements" by Michael Lovendusky. The article addresses the systematic acquisition and transfer of life insurance policies to investors without insurable interest in the insureds' lives is a controversial activity. The systems encourage illicit schemes for...

INTRODUCTORY MATTERS IN PROPERTY INSURANCE - New Appleman on Insurance Law Library Edition, Chapter 41

By David B. Goodwin, P. Benjamin Duke, and R. Gregory Rubio This chapter provides an introduction to the basic contours of the law applicable to policies of commercial property insurance and the fundamental considerations that commercial businesses and their insurers encounter in securing and maintaining...

Highlights of the Fall 2011 Issue of New Appleman on Insurance: Current Critical Issues in Insurance Law

The Fall 2011 issue of the New Appleman on Insurance; Current Critical Issues in Insurance Law quarterly features three articles on the cutting edge of insurance law: • On the Cusp of Change: the Intersection of Social Media and Insurance • An Overview of Seven State-Sponsored Property...

Wager On Life Is Void -- Insurance Requires Insurable Interest

By Barry Zalma, Attorney and Consultant It is the essence of insurance that for insurance to exist the person insured must have an insurable interest in the property or life insured. Life insurance insurable interest can be defined as an interest based upon a reasonable expectation of pecuniary...

Title Insurance – New Appleman on Insurance Law Library Edition, Chapter 54

By Steven A. Freeman, Stephen V. Masterson, Philip M. Midgen, and Ann E. Miller, Attorneys, Glaser Weil Fink Jacobs Howard Avchen & Shapiro LLP This chapter addresses the unique elements of title insurance, the scope of coverage under title policies ( see Sections 54.01 through 54.07), the loss...

Introduction and General Principles of Reinsurance Law – New Appleman on Insurance Law Library Edition, Chapter 71

By Daniel W. Gerber, Jeffrey L. Kingsley and Fallyn B. Reichert, Attorneys, Goldberg Segalla LLP Chapter 71 provides a thorough introduction to reinsurance and its commercial purposes; the operation of reinsurance contracts; and certain fundamental legal concepts. Section 71.01 begins by discussing...

Barry Zalma: Contract of Personal Indemnity – Failure to Protect Insurable Interest Expensive

By Barry Zalma, Attorney and Consultant Insurance is a contract of personal indemnity and does not follow the title in the land. When parties enter into lease agreements of real or personal property both the lessor and lessee have an insurable interest in the property. Either one or both can individually...