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 originating policies and transferring their benefits to speculators. Authorities are responding in three ways to deter illegitimate activity. They are reasserting insurable interest requirements; expanding the settlement prohibition period and requiring disclosures of settlement plans; and creating new statutory violations for strangers originating life insurance with unlimited time for interested parties to challenge stranger-originated policies.
Learn more at the Store about the quarterly publication, New Appleman on Insurance: Current Critical Issues in Insurance Law.
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