Stoli Life Insurance

Februari 06, 2020

The first is referred to as stranger owned life insurance stolithis is when a persons life insurance policy benefits a stranger someone the insured person may. Florida insurance officials are raising the alarm about a growing and controversial niche of the secondary life insurance market known as stranger originated life insurance stoli policies.

What Is Stranger Originated Life Insurance

Stranger owned life insurance agents seek out terminally ill people and scheme to buy their life insurance policy in a life settlement andor sell the victim an annuity for less than its worth.

Stoli life insurance. Generally the purpose of life insurance is to provide peace of mind by assuring that financial loss or hardship will be alleviated in the event of the insured persons death. Life insurance was not intended to be used as a vehicle for financial speculation on human life. Stranger originated life insurance or stoli is a life insurance policy that is held or financed by a person who has no relationship to the insured person.

Stoli is a contrived transaction designed to evade state insurable interest and other laws and allow investors to use life insurance to profit from the deaths of people they dont know. By its very design stoli transactions are set up to be fraudulent and consumers need to be made aware of it. Stranger owned life insurance stoli or stranger originated life insurance is a way to bypass the insurable interest requirement of purchasing life insurance.

Stranger originated life insurance state legislators have an unprecedented opportunity to take a leading role in protecting consumers from a growing national abuse that threatens to undermine the social purpose of life insurance. Stranger originated life insurance policies or stoli policies have been in the news lately leading many senior citizens and life insurance policy holders to wonder what it is and why its illegal in some states. This abuse called stranger originated life insurance stoli uses life insurance.

Life settlement question question. Stranger originated life insurance stoli generally means any act practice or arrangement at or prior to policy issuance to initiate or facilitate the issuance of a life insurance policy for the intended benefit of a person who at the time of policy origination does not have an insurable interest in the life of the insured under the laws of the applicable state. Stoli also could potentially expose consumers to unexpected taxes loss of privacy and inability to obtain needed life insurance in the future.

Unsuspecting seniors nationwide could be lured into committing fraud and losing their ability to ever get life insurance again. In effect stoli promotes wagering on human life. What is stranger originated life insurance stoli.

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