District Court Rules on Stranger-Initiated Annuity Transactions

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On June 2, 2010, the U.S. District Court in Rhode Island ruled on motions to dismiss in a series of cases brought by insurers arising out of stranger-initiated annuity transactions. See Western Reserve Life Assurance Co. of Ohio v. Conreal LLC, et al., C.A. No. 09-470 (D.R.I. 2010). The court dismissed the insurers’ rescission claims against the investor-owners of the annuities, but allowed fraud and certain other claims to proceed against other defendants involved in the sales of the annuities.

The stranger-initiated annuity transaction (STAT) scheme was described by the court as follows, based on the allegations of the complaint...

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Published In: Civil Remedies Updates, General Business Updates, Finance & Banking Updates, Insurance Updates, Personal Injury Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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