Life Settlement

Why does New York's STOLI provision mention trusts specifically?

Answer and explanation
Answer: B. Section 7815 names the use of trusts to circumvent insurable interest requirements among the arrangements constituting STOLI, which is why a trust-owned policy is examined for what stands behind it. Trusts may lawfully own policies and are not exempt from insurable interest.Source: N.Y. Ins. Law § 7815 — 7815, Trust owned policies

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