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,...

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...

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...

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...