Life Settlement
Which arrangement does New York describe as stranger-originated life insurance?
Answer and explanation
Answer: A. Section 7815 describes STOLI as acts to facilitate policy issuance for a person lacking insurable interest in the insured's life, including purchase with resources from ineligible persons, arrangements to transfer ownership, and use of trusts to circumvent the insurable interest requirement. A genuine later sale, tracking, and brokering are regulated activities rather than STOLI.Source: N.Y. Ins. Law § 7815 — 7815, What STOLI covers
More life settlement questions
- Why does the life settlement article contain a privacy provision?
- How does New York define a life settlement broker?
- How does New York define a life settlement contract?
- How does New York define life expectancy for life settlement purposes?
- What consequence does section 7815 attach to engaging in STOLI?
- What does New York's stranger-originated life insurance provision prohibit?
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