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STOLI

Carlton Fields

STOLI Fallout: Stepping Into the Post-Void

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The phenomenon of void ab initio life insurance policies has “spawned a host of thorny questions regarding the appropriate remedial response to the identification of a policy as STOLI.” The Supreme Court of Delaware...more

King & Spalding

STOLI Policy? Don't Count on the Return of Premiums

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Two Recent Decisions Throw Cold Water on Investors’ Ability to Get Their Premiums Back on Policies Deemed Void Ab Initio - In the latter half of 2022, the Seventh Circuit Court of Appeals and the Delaware Supreme Court—two...more

ArentFox Schiff

Georgia Supreme Court Holds Life Insurance Policies Taken Out With Intent to Sell are Lawful

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On October 25, 2022, the Supreme Court of Georgia answered a certified question from the Eleventh Circuit Court of Appeals concerning Georgia’s insurable interest statute, OCGA § 33-24-3 (1995)....more

Carlton Fields

Recent Developments in Life Insurance Litigation

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STOLI - We reported in detail on developments in the case law and legislation addressing stranger-originated life insurance (STOLI) policies in past issues of Expect Focus – Life, Annuity, and Retirement Solutions. ...more

ArentFox Schiff

The Delaware Supreme Court’s Second Major Opinion on the Secondary Life Market Offers Substantial Protections for Investors

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On May 26, 2022, the Supreme Court of the State of Delaware issued its decision in Wells Fargo Bank, N.A. and Berkshire Hathaway Life Insurance Company of Nebraska v. Estate of Phyllis M. Malkin (19-14689, 17-cv-23136, 172,...more

Locke Lord LLP

Georgia Supreme Court to Weigh-in on Key Insurable Interest Question for Life Insurance

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Appeal from the United States District Court for the Northern District of Georgia, D.C. Docket No. 1:17-‎cv-03857-WMR.‎ On February 4, 2022, the United States Court of Appeals for the Eleventh Circuit certified two...more

Carlton Fields

State Law Steers STOLI Cases, Drives Federal Court Outcomes

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We previously reported in detail on developments in the case law and legislation addressing stranger- originated life insurance (STOLI) policies. See “New Jersey Springs Into Action: New Bill to Ban STOLI Policies” and “New...more

King & Spalding

Betting On Strangers’ Lives: A Brief Look at How Different States Are Scoring the Insurable Interest vs. Incontestability...

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This alert covers the current law on stranger-originated life insurance (“STOLI”) policies in 14 different states and includes updates concerning the following developments: • A 2020 decision applying New York law which...more

Carlton Fields

New Jersey Enacts Anti-STOLI Law

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We have previously reported on New Jersey’s effort to enact legislation prohibiting stranger-originated life insurance (STOLI) and the New Jersey case law leading up to that legislation. See June 2019, December 2019, and...more

Cozen O'Connor

New Jersey Enacts Anti-STOLI Legislation

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Earlier this year, we reported on the New Jersey Assembly’s unanimous (78-0) vote approving Assembly Bill 1263, supplementing New Jersey’s Viatical Settlements Act, N.J.S.A. 17B-30B-1, et seq., and outlawing...more

Cozen O'Connor

Class Certification Denied in Portion of COI Case Based on Argument that the Policies are STOLI

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The United States District Court for the Southern District of New York recently issued a decision denying class certification to sub-classes in a cost of insurance (“COI”) class action based upon the insurer’s defense that...more

Orrick, Herrington & Sutcliffe LLP

SDNY Rules on Class Plaintiffs' Motion for Class Certification in AXA COI Litigation

On August 13, 2020, in the putative class action challenging AXA’s COI rate increase on Athena Universal Life II (“AUL II”) policies, Judge Jesse M. Furman of the United States District Court for the Southern District of New...more

Carlton Fields

New Jersey Springs Into Action: New Bill to Ban STOLI Policies

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We previously reported in detail on New Jersey’s recent case law addressing the validity of stranger-originated life insurance (STOLI) policies in the June 2019 and December 2019 issues of Expect Focus – Life, Annuity, and...more

Cozen O'Connor

New Jersey Assembly Overwhelmingly Approves Anti-STOLI Legislation

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As many of you may know, Cozen O’Connor was victorious last year in obtaining a ruling by the New Jersey Supreme Court in Sun Life Assurance Company v. Wells Fargo Bank, N.A., 238 N.J. 157 (2019) (Bergman) that...more

Carlton Fields

Third Circuit Application of Certified Questions Confirms STOLI Policies Void in New Jersey

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We previously reported on the New Jersey Supreme Court’s ruling on the validity of stranger-originated life insurance (STOLI) policies in the June 2019 issue of Expect Focus — Life, Annuity, and Retirement Solutions....more

Cozen O'Connor

New Jersey Supreme Court Rules Stranger-Originated Life Insurance Is Illegal and Void

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The New Jersey Supreme Court recently condemned stranger-originated life insurance (“STOLI”) transactions as void ab initio human life wagers in a case that the life insurance and life settlement industries watched closely....more

Carlton Fields

STOLI Policies Void in New Jersey

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The New Jersey Supreme Court recently held stranger-originated life insurance (STOLI) policies void as against public policy. In Sun Life Assurance Co. of Canada v. Wells Fargo Bank, N.A., a $5 million policy was taken out on...more

Orrick, Herrington & Sutcliffe LLP

New Jersey Supreme Court Rules on Insurable Interest and Return of Premiums

On June 4, 2019, in a case captioned Sun Life Assurance Company of Canada v. Wells Fargo Bank, N.A., the Supreme Court of New Jersey answered two questions certified to it by the United States Court of Appeals for the Third...more

White and Williams LLP

NJ Supreme Court Rules STOLI Policies Violate Public Policy and Void at the Outset

On June 4, 2019, in a win for New Jersey residents and life insurance companies with policies underwritten in New Jersey, the Supreme Court of New Jersey took a stand against Stranger-Originated Life Insurance (STOLI)...more

Carlton Fields

Eleventh Circuit Reverses Dismissal of Insurer’s Fraud and Racketeering Claims Against Premium Financer

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The Eleventh Circuit recently addressed the legal viability of federal racketeering, fraud, and declaratory relief claims by Sun Life against a premium finance company arising out of an alleged STOLI scheme, as well as the...more

Carlton Fields

Second Circuit Affirms Summary Judgment for Bona Fide Purchaser in STOLI Action

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In a June 8, ruling in AEI Life v. Lincoln Benefit Life Co., the Second Circuit upheld the District Court for the Eastern District of New York’s application of New York’s two-year incontestability period to a STOLI policy....more

Patterson Belknap Webb & Tyler LLP

Lengthy summary order affirms an order of restitution

In a 12-page summary order issued on February 9, 2018, the Second Circuit affirmed an order of restitution in United States v. Quatrella, 17-1786. The order is interesting primarily because it addresses the question of when...more

Carlton Fields

Expect Focus - Volume III - September 2017

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EXPECTFOCUS® is a quarterly review of developments in the insurance and financial services industry, provided on a complimentary basis to clients and friends of Carlton Fields Jorden Burt, P.A. ...more

Carlton Fields

Eleventh Circuit Affirms Summary Judgment or Insurer in STOLI Case

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In Sun Life Assur. Co. of Canada v. U.S. Bank Nat. Ass’n, the Eleventh Circuit recently clarified that where a life insurance policy lacks an insurable interest at its inception and is thus void ab initio, prejudgment...more

Locke Lord LLP

Florida may have outlawed legitimate premium finance lending

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Florida has recently adopted amendments to its Viatical Settlement Act. One of the new provisions, Section 626.9911 (9), defines a prohibited stranger-originated life insurance practice as: - (9) “Stranger-originated...more

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